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Recalculating the Impact of the Carbon Tax: How changes to global carbon accounting standards will wipe our household over-compensation

OCCASIONAL PAPER

| Tim Wilson

Recalculating the Impact of the Carbon Tax: How changes to global carbon accounting standards will wipe our household over-compensation

By the end of this year household carbon tax ‘over-compensation' will be wiped out by changes to the global carbon accounting rules used to calculate the environmental impact of greenhouse gases.

The changes will:

  • Increase Australia's emissions profile by the equivalent of 22 million tonnes of carbon dioxide per annum.
  • Increase the cost impact of the carbon tax by nearly $230 million per annum.
  • Increase the average carbon tax impost to households, thus wiping out ‘over-compensation'.
  • Ensure the average Australian household is worse off under the carbon tax.

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