Australians will face higher state taxes and/or service cuts as a direct result of the carbon tax, Shadow Parliamentary Secretary for the Environment Simon Birmingham said today.
It follows revelations from South Australian Labor Treasurer Jack Snelling about the extent of the financial impact on the state budget’s bottom line.
“We expect that [the federal government’s carbon tax] to have an impact to the budget of $10-$11 million every year.”
Jack Snelling, The Australian, 21 December 2011
The South Australian Government’s Mid-Year Budget Review makes provision for “the anticipated increase in electricity and gas costs and impacts on rail, bus and remote diesel fuel.”
“Clearly, Julia Gillard’s carbon tax will see state governments around Australia having to reduce services, run higher deficits or raise their taxes and charges or a combination thereof,” Senator Birmingham said today.
“Households already bracing for the impact of the carbon tax will be horrified at the idea of increased state taxes to pay for federal Labor’s carbon tax.
“This must be the ultimate double whammy – new taxes to pay for a new tax.
“The carbon tax will mean a 10 per cent increase in electricity bills in the first year alone and a 9 per cent increase in gas bills in the first year alone.
“Labor and the Greens have rammed their carbon tax through the Parliament without explaining to Australians the full extent of its impact on their wallets or its impact on their lives.”