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Millions of households about to feel the pinch from carbon tax: Abbott

11 July 2011 - 6:43pm

As details of the carbon tax are released, average Australians are preparing for the impact it will have on their household budgets.

The average rise will be $515 a year, with prime minister Julia Gillard conceding that not all households will be compensated.

Low-income earners and seniors will be covered by newly-announced family payment increases and tax cuts, to the tune of 20 per cent more than the rise in costs.

Millions of households won't be so lucky and will inevitably be out of pocket. Gillard has told Radio National that these choices were made based on who would require the most assistance once the scheme is introduced.

Opposition leader Tony Abbott has pointed out the sectors of the population who won't receive compensation, including single-income families with children.

"These parents, trying to get ahead and provide for their families, will be penalised by Julia Gillard’s carbon tax," says Abbott.

This includes households whose earnings fall under $65,000.

As the cost of living increases, speculation rises over how those affected will find the extra money to cover the new expenses.

Those looking at tightening their budgets can benefit by consulting a private health cover broker.

By comparing health insurance rates, they may be able to make necessary savings without having to sacrifice their level of cover.