Impact of the carbon tax on households

The impact of the carbon tax on household expenditure is likely to be relatively mild with an increase in inflation of 0.6%. Compared to the recent past, this impact should be easily manageable.

When you delve into the quantitative data on energy and carbon emissions it appears that there is little basis for households to fear carbon pricing. The energy price rises we’re likely to experience are pretty mild for most households and most businesses in comparison to their overall expenditure. And the money raised by government through requiring polluters to pay a carbon tax or purchase carbon permits doesn’t just disappear into the ether. It can be redistributed back to households such that they are no worse off – although some polluting businesses will be less profitable.

Getting a reasonable feel for energy price rises over the next decade is actually a reasonably straightforward calculation that can be demonstrated transparently, without the need for fancy economic models.



{{ twilioFailed ? 'SMS Code Failed to Send…' : 'An SMS verification code has been sent ...' }}

Hi {{ user.FirstName }}

Looks like you have already taken a free trial

Please enter your payment details

We have sent you a code via SMS to {{user.DayPhone}}

please enter this code below to complete your SMS verification

We cannot send you a code via SMS to {{user.DayPhone}}

If you didn't receive SMS code please

SMS code cannot be sent due to: {{ twilioStatus }}

Please select one of the options below:

Looks you are already a member. Please enter your password to proceed

Please untick this box when using a public or shared device

Verify your mobile number to proceed...

Please check your mobile number below and press the Send Verification Code button. This will be used to complete your verification in the next step.

Please sign up for full access


Updating information

Please wait ...


{{ productPrice }} / day
( GST included )
Price $0
GST $0
Discount -{{productDiscount}}
TOTAL {{productPrice}}
  • Mastercard
  • Visa

Please click on the ACTIVATE button to finalise your membership


The email address you entered is registered with InvestSMART.

Please login or select "Don't know password"

Please untick this box when using a public or shared device

Register as a new member

(using a different email)

Related Articles