Updated April 2012
There are a number of measures to help households and community organisations manage the impact of the carbon price.
The Commonwealth Government Clean Energy Household Assistance Package will help low and middle income households manage the impact of the carbon price on their costs of living.
The Household Assistance Package will help low and middle income households take action on climate change without unduly bearing any costs. This assistance will mean:
Household Assistance Estimator
The Household Assistance Estimator is a guide to help Australians understand the impact that a carbon price is expected to have on prices of goods and services and the cash assistance that is being provided for Australian households.
Pensioners and allowees
Assistance will be provided to recipients of pensions and allowances in two stages.
Families receiving Family Tax Benefit Part A will receive an increase in their payment equivalent to 1.7 per cent of the annual rate of payment. This is worth up to $110 per child per year.
All families receiving Family Tax Benefit Part B will get an increase to their payment equivalent to 1.7 per cent of the maximum rate. This is worth up to $69 per family per year.
This assistance will first be delivered through a one-off, tax exempt, lump sum Clean Energy Advance from May-June 2012.
After this, increases will be delivered as a separate Clean Energy Supplement which will be paid as part of families’ regular payment cycles.
People in low-income family households who do not receive sufficient assistance as an increase to their payment or through the tax system will also be able to claim a new Low Income Supplement of $300. The supplement will be claimed through Centrelink.
Further assistance will be made available to middle-income family households with one primary earner to account for the fact they will only benefit from one earner’s tax cuts. These families will receive assistance as an increase to their payment through the Single Income Family Supplement of $300. Families not receiving Family Tax Benefit will be able to claim the supplement through Centrelink.
Essential Medical Equipment Payment
Carbon pricing is expected to impact on the price of electricity. To offset the electricity price impacts on people with these medical needs, the Government will provide an Essential Medical Equipment Payment.
The Essential Medical Equipment Payment will provide assistance of $140 annually from 1 July 2012. It will be available to eligible Australians who experience additional increases in home energy costs under a carbon price as a result of the medical equipment used in their home to manage their disability or medical condition.
Self-funded retirees who have a Commonwealth Seniors Health Card will receive the same level of assistance as pensioners. Assistance will be provided to Commonwealth Seniors Health Card holders in two stages.
Firstly, Commonwealth Seniors Health Card holders will receive an up-front lump sum advance in May-June, while their regular payments remain unchanged. This advance provides assistance for the period from the introduction of the price on 1 July 2012 until 20 March 2013 and is tax exempt.
The advance delivers assistance of $250 for singles and $190 for each member of a couple.
Payments will be made through Centrelink, or via Family Tax Benefit A and B.
The Australian Government.
For more information on the Clean Energy Household Assistance Package visit the Clean Energy Future website.