Carbon tax strains household budgets

by Caroline Dann07 Aug 2012

Research shows the carbon tax has significantly increased household utility bills, adding extra strain to Australian households.

The TD Securities’ Melbourne Institute Monthly Inflation Gauge for July showed a 14.9% rise in the cost of electricity, alongside a 10.3% increase in gas and other household fuels.
While the rises were expected in the Treasury’s predictions, it’s on the higher end of the scale. 
Meanwhile, inflation remains low and GDP growth is exhibiting signs of strength, which “is an economic sweet spot and certainly backs up RBA Governor Stevens’ glass half full chirpy theme of late,” said Annette Beacher, head of Asia-Pacific research at TD Securities.
“The June quarter GDP is shaping up to be a blockbuster due to strong private consumption and a significant rebound in the trade sector.”
She added that Australia is “well-placed to absorb global shocks, and the RBA Board can comfortably leave cash rates unchanged at 3.5% at the meeting [today].”
Related news:


  • by Country Broker 7/08/2012 9:51:39 AM

    This may be so for those poor city cousins , I live in an area with plenty of daylight hours and put in solar power panels using the goverment subsidies , best thing I ever did , my only regret is not spending more on a larger system !! If you can look at solar power or hot water , there are stilsubsidies avaliable !! power bill is DOWN and I have added value to my home !!

  • by Lynne Cox 7/08/2012 12:50:22 PM

    I don't know about other states but in WA the power and gas bills are way above the 8% increase they predicted

    Everyone I know have had 20 - 25% INCREASES!!