House debates

Wednesday, 12 August 2015

Questions without Notice

Carbon Pricing

2:23 pm

Photo of Greg HuntGreg Hunt (Flinders, Liberal Party, Minister for the Environment) Share this | Hansard source

What is the cost to this threat to Australian household savings? What we see is a $600 billion cost, we see a $209 carbon price, we see $5,000 per family by 2030, and what else do we see? A 78 per cent increase in wholesale electricity prices. And it is their modelling of their target for the carbon tax. This is the work they did in government but about which they are ashamed. We are absolutely clear—we are reducing costs, we are reducing electricity prices and they are increasing costs and he is increasing electricity prices.

Comments

Tibor Majlath
Posted on 22 Aug 2015 7:12 am (Report this comment)

The Minister's office did the analysis according to the Herald Sun. The analysis involved applying 18 years of inflation at 2.5 CPI per annum to the highest price model to make the figures even scarier. These are projections over almost two decades. Difficult to predict 1 year in advance. How often do they get it right? Certain people don't believe modeling when it comes to climate change, yet believe blindly Labor's modeling.

$5000 per family? It is not a "$5,000-per-family hit", rather a $4900 per capita difference between scenarios in 2030 dollars in the Gross National Income (GNI) which is the gross domestic product (GDP) plus net receipts of primary income (employee compensation and investment income) from abroad. GDP is the sum of value added by all resident producers plus any product taxes (less subsidies) not included in the valuation of output. GNI per capita is gross national income divided by mid-year population.

As to reducing electricity prices, wait till the GST is raised to 15% which applies to the the whole bill. Each 1% lift in the rate of the GST will mean 10% increase in tax levied. Families are already paying $51.738 billion / 9,117,033 households = $5675 per year per household in GST.