Treasury modelling confirms carbon tax double whammy - real wages drop as prices rise

February 6, 2012

North Coast families will suffer a double whammy as a result of the Gillard Government’s carbon tax after it was revealed real wages will decrease while the cost of living rises, Federal MP Luke Hartsuyker said today.

“An analysis of Treasury modelling has revealed that in addition to rises in the cost of living, under a carbon tax real wages will drop one per cent by 2020 and six per cent by 2050,” Mr Hartsuyker said.   “A one per cent drop is the equivalent of $600 per year for a worker on average wages.  As we approach July 1 when the carbon tax will come into effect, the true impact is becoming very real. The double whammy of lower wages and higher prices will hit families hard.

“Last week Qantas announced an increase in their charges as a result of the Gillard Government’s carbon tax. This will have an impact on our domestic tourism industry which is so important to the North Coast. Tourism is already struggling with the high Australian dollar.  This is just the tip of the iceberg when it comes to companies increasing their prices because of the carbon tax.  Once it is applied to the electricity prices the cost of meat, bread and every other good which is dependent on electricity will rise. The electricity sector has estimated that electricity prices will rise up to 20 per cent in the first year.

“It is beyond belief that Independent Rob Oakeshott continues to turn his back on businesses and households in his electorate who will feel the full impact of the carbon tax.  He continues to prop-up a Government which has no mandate to introduce this tax and a Prime Minister who betrayed the trust of the Australian people.  Indeed his ‘head in the sand’ approach to this issue is a reflection of someone who has never worked in the real world and is completely out-of-touch.  He simply doesn’t understand the cost of living pressures on North Coast households and the challenges facing Australian businesses in a global marketplace.”