New research shows consumers are increasingly anxious about the financial impact of the carbon tax.
The poll, by national mortgage broker Loan Market, found 59% of consumers believed the cost of living would rise significantly because of it, despite compensatory measures put in place by the government.
It's another blow to confidence levels within the housing market.
Recent surveys have found very low levels of confidence across-the-board, and the carbon tax will simply "[weigh] in on consumer confidence in what are challenging times," said a Loan Market spokesperson.
"Households have had to budget for substantial cost-of-living increases in the past year and this tax has consumers convinced they’re going to have to keep paying more.
“Consumers have been cautious and subdued for some time due to their concerns about the impact of the European debt situation and the direction of the domestic economy. A continuation of caution will result in an economic slowdown," they said.