The Labor government recently promised to reduce the price of carbon from the world-record-high of $25 a ton to a probably-could-be might-look-like $6 a ton price, as it switches (possibly) from a Carbon Tax to an Emissions Trading Scheme.
The compensation that was promised to offset the Carbon Tax will still be paid to voters, even though the Carbon Tax might end. Thus bread and fishes will be supplied, but hardly anyone will have to bake or fish. The innovation comes thanks to the impending-electron-factor — a strange combination of the Fibbs-Boson*, and a Poll flavored Quark.
Bonus for families as price of carbon falls
by: ADAM CREIGHTON, From: The Australian
THE Rudd government has banked massive overcompensation into the federal budget for at least the next six years, if the carbon price fails to meet Treasury’s optimistic price projections.
More than 80 per cent of households will be overcompensated for the effect of the proposed emissions trading scheme by between $140 and $410 a year in 2019 if the price of carbon permits only rises to $10, new modelling shows. Even if the price of carbon reaches the $38 a tonne in 2019 that Treasury currently projects, more than 60 per cent of households, including practically all pensioners and single parents, will receive excess compensation of up to $45 a year in 2019. National Centre for Social and Economic Modelling senior researcher Ben Phillips said given a possible drop in the carbon price to $6 under an ETS, the compensation package was “arguably too generous”, offering between three and five times the carbon price impact in assistance.
“Around 90 per cent of households are fully compensated,” he said. “Households reliant on pensions and allowances are likely to remain adequately compensated for a very long time because their payments increase with the inflation or wages.”
Governments world-wide are admiring the brazen technique where 90 per cent of households are fully compensated. Both Singapore and Chile have issued a blanket invitation for the other 10% of Australian households to emigrate.