NSW Government’s Scare Campaign on Council Rates is a $14 Million Dud

The New South Wales Government has today confirmed that the Federal Government's household assistance package, on average, will cover council rate rises that might arise from the Clean Energy Future Plan.

The New South Wales Government has today confirmed that the Federal Government's household assistance package, on average, will cover council rate rises that might arise from the Clean Energy Future Plan.

"By the NSW Government's figures, rate rises - if any - will amount to 6 cents a week on average per household compared with an average $10.10 a week household assistance from the Federal Government," said Mark Dreyfus, Parliamentary Secretary for Climate Change and Energy Efficiency.

"Rate rises have been well and truly taken into account in the careful design of the Federal Government's carbon price assistance package," he said.

Figures issued by the NSW Government confirm that the carbon price will see rate rises averaging 0.4 per cent across the State - lower than federal Treasury's modelling of the impact on property rates and changes.

"This is another piece of evidence showing up Tony Abbott's scare campaign as completely misleading," the Minister for Climate Change and Energy Efficiency Greg Combet said.

"Mr Abbott has been telling people there will be ‘unimaginable' cost of living impacts from the carbon price.

"But now, as the facts come in, it is clear the impacts are modest and millions of households will be fully assisted through tax cuts, higher family payments and increases in pensions and benefits."

This includes:

  • From 16 May - lump sum payments of up to $110 per child and up to $69 per family for those on Family Tax Benefit Part A.
  • From 28 May - pensioners receive a lump sum payment of $250 for singles and $380 for couples. Self-funded retirees with a Seniors Health Card will also receive this payment.
  • From 1 July the tripling of the tax free threshold will deliver tax cuts to all taxpayers earning less than $80,000.

The carbon price coming into place on July 1 has been carefully designed to deliver environmental and economic benefits to all communities.

Mr Dreyfus said the Federal Government's Clean Energy Plan also offered financial incentives for councils to cut dangerous methane from their landfill sites and offered $200 million in grants to councils to improve their energy efficiency, resulting in cost savings to local communities.

"The Gillard Government has been consulting constructively with all states on these issues, including NSW, for many months," he said.

"In the best interests of ratepayers and all NSW constituents, Mr Page and the O'Farrell Government should be working responsibly to bring the carbon price into place rather than adding to Tony Abbott's hysterical Chicken Little sideshow."