Carbon tax will hurt Senior Australians: Bishop

12/07/11

Bronwyn Bishop, Shadow Minister for Seniors, has condemned the Labor-Green Government’s carbon tax announcement which is set to punish senior Australians including those still in the work force, self-funded retirees and pensioners. Seniors know their children and grandchildren face a reduced standard of living with the imposition of this tax. This is not the legacy they want to leave for them.

Senior Australians who are still in the workforce, and the income tax paying self funded retirees, will not only suffer from living cost increases due to the carbon tax that will keep going up and up, they will also face higher marginal tax rates on their personal incomes.

For seniors earning the full time average wage equivalent of some $70,000 they will face an increase in their marginal tax rate of 2.5c in the dollar from 1 July next year. Someone earning only $25,000 and facing a marginal rate of 15c in the dollar will see this rise to 19c in the dollar. So for both these groups the incentive to earn extra income is diminished.

Mrs Bishop highlighted that the carbon tax will not only directly increase the cost of energy, but will also heavily impact a wide variety of goods senior Australians purchase in their everyday lives.

“The carbon tax will see a 10% increase in electricity and a 9% increase in gas prices in the first year alone. This is a cascading tax, which will get to every nook and cranny of your life because this is a giant tax on electricity, which will feed into everything seniors buy and use. Not only will electricity and gas be more expensive but so will all the products of daily life, food, water, transport and health. Even the pharmaceutical industry is concerned about the carbon tax’s impact on the cost of medicine. Fuel prices will increase as a result of increased electricity costs and, ultimately, increased fuel transport costs,” Mrs Bishop said.

“The Prime Minister lied to the people when she said before the election she would not introduce a carbon tax, seniors will no doubt keep these words in mind when they judge whether any of the so-called compensation money can be relied upon. Particularly when they realise the first $2.9 billion of that money will have to be borrowed by the Government even before the tax starts, thereby increasing this year’s deficit,” Mrs Bishop said.

Mrs Bishop highlighted that self-funded retirees will be some of the worst affected.

“Self-funded retirees who do not hold a Commonwealth Seniors Health Card will not receive any of the extra government payments. This means 285,000 Australians who have saved and sacrificed to fund themselves in retirement and do not rely on the taxpayer will be dramatically worse off. Once again, the Prime Minister is confirming her utter contempt for the needs of pensioners and self funded retirees.” Mrs Bishop said.

“If Labor and the Greens pass it the Coalition will rescind it.” Mrs Bishop said.