A few months may have passed since the announcement of the proposed Carbon Tax but the detail of how the compensation will work is still the subject of some confusion. YOURLifeChoices subscriber Denis would like to know how compensation will be paid.
I am on the Age Pension and am expecting compensation for the Carbon Tax. Could you tell me if this compensation will be part of the base rate or the supplement base?
As yet, the Carbon Tax has not been approved by Senate so it is worth noting that the planned compensation may be altered. It is proposed that the initial compensation will be paid as a Clean Energy Supplement during May and July 2012. This will cover the anticipated increased costs applied to goods and services from 1 July 2012 until March 2013, when an increase in pension rates will apply.
The following article explains in greater detail how compensation will be paid to pensioners over the next two years, and how much that compensation will be.