Updated November 13, 2020 15:34:58 The carbon tax is likely to be a tax on the wealthy, according to a new study by the Tax Justice Network.
Key points:The report shows a number of states will see higher carbon tax bills than othersUnder the carbon price, some people will be paying a tax for doing nothingThe carbon price will be more expensive than what most people earnUnder the tax, some Australians will pay more under the carbon pricing regime, which will make up about 12 per cent of their incomeUnder the Carbon Price, the Government is targeting $27 per tonne of CO2.
For most people, the cost of the carbon levy is expected to be around $20.
For those in higher income brackets, it could be as much as $150 a tonne.
The report, titled State of Carbon, says the carbon rate will be high and the tax will be too high to be justified by the benefits to the economy.
“This is the result of a number ‘factors’, namely the cost and complexity of the policy, as well as the degree of compliance with the tax and its implementation,” the report says.
The tax is projected to hit the top 10 per cent earners by 2023, with the top 0.1 per cent paying an average of $4,958 per year, compared to about $10,500 in the top 5 per cent.
“The impact on the average family in each state is likely be higher than the average Australian household, particularly in states where there is a significant gap between the tax rate and the incomes of the highest earners,” the study says.
It also found that the carbon taxes will be “excessive” and will result in “significant cost” for the economy over the long-term.
The study says a number more states could be hit hard by the price, which is estimated to be $27 a tonnes by 2028.
The states with the highest carbon tax rates are Western Australia, New South Wales, Victoria, Queensland and Tasmania.
In the Northern Territory, where the carbon fee is higher, the rate is set to be the highest of the 12 states.
But the report found the rate in NSW, which has a carbon fee of $2,000 per ton, was among the lowest of the states, at just $12.15 a tonme.
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