Carbon tax: why is it happening?

The Government will introduce a tax on carbon pollution in a bid to reduce Australia’s emissions under the Clean Energy Future Bill, but how will this affect household budgets?

Under the Clean Energy Future Bill the Government has signalled target reductions in carbon emissions of 20 per cent by 2020 and 80 per cent by 2050. To achieve these targets, the Government will implement a tax on the country’s top 500 polluters in a bid to incentivise them to reduce their carbon emissions.

It is anticipated that the implementation of such a tax will force these businesses, many of which are power suppliers and heavy energy users, to increase the price of their end products to consumers. The knock-on effect being an increase in the cost of living for many Australian households.

To read more about the intricacies of the carbon tax, why not read YOURLifeChoices article Carbon tax explained?