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(generated from captions) released details on the carbon tax The Government has finally and how it'll affect family budgets. to begin the hard sell. The Prime Minister is standing-by from our expert panel And we'll also get the verdict environmental expert Jon Dee finance whiz Michael Pascoe, and consumer advocate Ingrid Just. a look at what it's all about. But first, let's take the carbon they put in our skies. The aim is to make polluters pay for it for free. Until now, they've been able to do Some of the costs that will be incured by businesses as they pay a price for carbon will be passed through to households. So, we will use more than 50% of the money paid by big polluters to provide assistance to households in the form of tax cuts and payment increases. Under the tax household bill to rise we can expect the average weekly by just under $10. an average compensation of $10.10. But that will be offset by in the form of a tax cut 9 out of 10 households will get this or a benefit increase. In fact, rakes in from the big polluters half of all the money the government will go into our pockets. Two million households will get all their costs covered. Another two million households will get part of the cost increase covered and the 700,000 richest Australian families will get no compensation at all. So that gives you a bit of an outline of what generally Australian families will be up for. The editors in today's newspapers are generally pretty positive but they have a common theme, who is actually paying the tax? Melbourne's 'Age' calls it Gillard's biggest gamble. But the paper says the paper says the compensation package is so large, that 90% of households may be better off. The Daily Telegraph calls it the tax, the Green Machine but the paper is Telegraph calls it the tax, the PM's concerned Sydney families will be hardest hit. And the 'Sydney Morning Herald' calls it a clean start but says the government will have to encourage people to actually change their behaviour. So is it too to be true? I made the comment their behaviour. So is it too good duringing our special at midday yesterday after the tax was announced it did seem to be to to be true. Is it a bribe to go announced it did seem to be to good along with this? So is it too good to be true? good morning. Prime Minister Julia Gillard, The compensation is amazing, more than people expected. Is it a bribe to get people on the carbon tax bandwagon am It is the tax reform that I thought was really necessary for the country. Kochie, people would have heard me say before I understand there is nothing more important to individuals or the future of this nation than people having a job, having the benefits of work. So as we designed the best way of cutting carbon pollution, I also said to myself, "What is the best way of myself, "

showing people we value work? showing people we value work?." That's why the tax reform that comes with this package is about lifting the tax-free threshhold from the tax-free threshhold from around $ the tax-free threshhold from around

$6,000 to there18 thousand, trebleling, it that means one million taxpayers will come out of the tax system and not scrabble around looking for receipts at the end of the financial year. That is an important tax reform in its own right, valuing work and also it works through the tax system to provide people with a helping hand, with the price impacts they will see from us putting a price on carbon pollution. Yep, as Australians though we are always wary about a new tax. We don't trust politicians. We didn't trust John Howard with the GST. He had to give a rolled gold guarantee he wasn't going to increase the 10% level. Under the level. Under the carbon tax you have a lot of exemptions, agriculture, transport, all exempt, will you give a rolled-gold guarantee that you will not expand the carbon tax and overdo those exemptions? Will you guarantee the exemptions will stay The only plan to add an additional piece to who pays for carbon pollution was announced yesterday. That is to bring the heavy vehicles into the scheme from the first of July 2014. So that is it, Kochie, that is the only expansion that is planned. But I am going to be really honest with people here and I it is important people do honest with people here and I think understand, the price the around 500 big polluters pay for the amount of carbon pollution they put in the atmosphere, it does go up. It starts at $23 and does go up over time but at $

so does the household assistance and there will be second round of tax cuts. So you will guarantee no carbon tax on petrol or agriculture, forever? Correct. Great. Look, we are also getting a lot of people saying people saying, "Hey, when prices go people saying, "

up with the carbon tax, we get the GST whacked on top of it as well. Is it a tax on a tax? it a tax on a tax?." You see, a cost of living impact. Yes you will, a 0. Yes you will, a 0.7% increase in the consumer price index. So that is a modest price impost. So that is all in, all up, what will change. And all in, all up, 0. all in, all up, 0.7% of the C all in, all up, 0.7% of the CPI, that is what the tax cuts and increases in family payments are for. Okay, a lot of businesses are going to use the carbon tax as an excuse for putting up prices. What is the guarantee we won't be ripped off by businesses who just pass on too much and make a profit on this? We'll have the same cop on the beat that was on the beat when the GST came into effect. Let's get a sense of scale, the GST was a far bigger change, more on people's household bills, far more on people's household bills but the same cop wit be on the beat, that is the ACCC. They will be out there monitoring to look and see if anybody is using this as an excuse to profit tear. -- prof tier. While everyone is focusing on compensation, on the other side, a lot of money is going into developing clean technology industries in Australia, which is about time. Absolutely. Everybody is going to want to work through all the details of this and that is a good thing. They want to know about the tax cuts and the family payment increases and about the pension increases, they want to know what is happening in coal and steel and manufacturing. All that is a good thing, Kochie. But you are right, at the real heart of this is a clean energy future for our country. How do we move to use the renewable energy sources? the renewable energy sources our wonderful country has in abundant supply, solar, wind, geothermal, tidal, right at the middle of this is the carbon price to make dirty energy more expensive and $ energy more expensive and $13 billion to help us catalyse the renewinables industry, more solar, wind, geothermals energy. Why do we have to be the first it, the world to do this? Why do we lead the way? Why can't we come in the middle of the pack, after everybody else. Kochie, we are not leading the world. There are emissions trading schemes in other parts of the world. Europe Europe has one, New Zealand has gotany missions trading scheme, I nearly said, even New Zealand but all the New Zealanders would be up set. But a small country all the New Zealanders listening like New Zealand has moved to an emissions trading scheme. We are actually starting this race to a clean energy future behind the pack, in the sense we generate more carbon pollution per Australian than any other country in the world does. In the developed world. So compare would countries in the developed world that we compete with, we have got a longer journey to get a clean energy future, it is why we have got to make a start. We will make the start on start on one jaoul. start on one start on one July next year. We need China We need China and India on board. China and India are acting, we have got to keep pace, I am not going to have this country left behind.