Finance Your Budget If the carbon tax goes, how much will you save?

If the carbon tax goes, how much will you save?

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The carbon tax is about to be repealed with conflicting views on how much consumers will actually save.

The Abbott Government claims the repeals will save consumers $550 per year, with the Palmer United Party pushing for legal guarantees to make sure energy companies pass on savings to the public.

The savings from the repealing of the tax are apparently also coming from food, clothing and rental prices.

So how much will Australian’s really save? We look at the conflicting figures.

Abbott government: $550

Tony Abbott’s key promise on election was to repeal the carbon tax claiming that it would save consumers $550 in the 2014-15 financial year based on Treasury figures.

In 2013, ABC Fact Check, examined Mr Abbott’s claims finding the figures were legitimate under the current legislation in the carbon tax pricing scheme.

The savings for consumers under the modelling report in 2012 included: $250 for electricity and gas, $46 for food, $29 for clothing and $23 for rent.

The Opposition: $380

The Labor party under Kevin Rudd claims that if they scrapped the carbon tax and introduced an emissions trading scheme consumers would save $380.

Climate Institute: $80 – $200

Climate Institute chief executive John Connor says the Abbott Government’s assessment is an “over-estimate”.

The Climate Institute told Guardian Australian consumers were likely to save between $80 and $200, mainly due to the rising cost of exporting gas.

Australia Institute: ‘small savings’

Economist Richard Denniss, executive director of the Australia Institute, says households will see small savings in the rate of growth of electricity bills.

Retail: $0

Coles and Woolworths claim they did not pass on the cost of the carbon tax to consumers and therefore would find it difficult to make any savings.

Airlines: $0

Qantas has removed a carbon surcharge from domestic flights, but says the industry was too competitive in 2012 to pass on the actual cost of the tax to consumers. Virgin Airline has also reportedly said it would not reduce domestic fare prices.

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