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Tuesday, 11 October 2011
Page: 7089

Carbon Pricing

(Question No. 967)


Senator Cormann asked the Minister representing the Treasurer, upon notice, on 18 August 2011:

With reference to the Treasury Carbon Tax modelling, Strong growth, low pollution: Modelling a carbon price:

In relation to the Government's estimates of the initial impacts of its carbon tax on households, in Table 5.20 of the Treasury modelling the results for families on 'estimated price impacts by household type' are all generically subdivided into either 'with children' or 'no children' - rather than distinctions being drawn based on the number of children:

(1) Is it the case that, for families with children, Treasury's modelling of the household impacts of the carbon tax has been done on a generic basis (i.e. 'with' or 'without' children), rather than separately modelling different family sizes; if so, does this mean that the household modelling results may not fully capture all of the different potential impacts of the carbon tax on

households of different sizes.

(2) Conversely, if different household sizes have been separately treated in the Treasury household modelling, has this further disaggregation of households reduced the sample sizes for some of these categories to the point where the results are not statistically significant (at the significance levels used in the tables on p. 126 of the Treasury modelling).


Senator Wong: The Treasurer has provided the following answer to the honourable senator's question:

The Treasury household modelling of a $23 carbon price in 2012 13 has been undertaken using detailed ABS income and expenditure data at the individual household level. These data are representative of different household types, income levels and different family sizes. Table 5.20 of Strong growth, low pollution: Modelling a carbon price presents a summary of this analysis for 11 different household categories.