THE carbon tax will inflate electricity prices by up to $200 a year more than Julia Gillard promised, demolishing claims her compensation package would ensure most people were hardly affected.
A NSW Treasury review into the carbon tax ordered by Premier Barry O’Farrell found electricity prices would go up by 15 per cent – not the 10 per cent predicted by the Prime Minister. That would mean an increase in a high-usage household of $498 a year, $300 for a medium-usage household and $183 for a low-usage household.
The report also found NSW would be the worst affected of any state by the tax, with 31,000 jobs to go and a hit to the state’s economy of nearly $4 billion in 2020, rising to $9 billion a year in 2030.
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