Real Wages Fall Under Carbon Tax

06/02/12

Real wages for Australian workers will fall under a Carbon Tax according to Treasury’s own figures.

Analysis of the Treasury modelling reveals workers will lose not just when the Carbon Tax starts in July but the fall in real wages will continue through to 2050.

The Treasury figures show the Carbon Tax will cause a large and continually growing fall-off in GDP.  The loss of output will be $32 billion by 2020 calculated in real 2010 dollars.

This loss will rise to $1 trillion by 2050.

Real wages are expected to fall by almost one per cent than otherwise by 2020.

This means for an average worker a cut in salary of $600 a year.

By 2050, the cut in real wages is six per cent, which is equivalent to an annual pay cut of $6,000 a year.

The Carbon Tax will hit Australian families hard as real wages fall and prices rise.  Last week’s announcement by Qantas of increased airline fares is just the start.  The best case scenario is that electricity will rise by a minimum of 10 per cent and gas by nine per cent and they will continue to rise each year.  The electricity sector has estimated that in fact the rise in electricity prices will be up to 20 per cent in the first year. Australians will be paying this tax on every service and product they buy.

In addition, job security is under threat as Australian businesses struggle to compete internationally due to the high Australian dollar.  Adding another tax will be the final straw for many.  Australian jobs will be lost as operations move offshore where businesses don’t pay the Carbon Tax.