Carbon Price and the Cost of Living


Nov 13, 2011 - 1:00am

This study gives households the tools to weigh up their own costs, financial support and potential savings under the carbon price with an independent online tool  - 

The CSIRO-AECOM research shows impacts on households are likely to be smaller than anticipated. It calculates Australia’s carbon pollution price will add 0.6 per cent to inflation in 2012-13. This is less of an impact on the economy than estimated by Treasury modelling, and may be even smaller as the modelling assumes a 100 per cent pass-through of costs by businesses to consumers.

The study also compares the effect of the carbon price with other inflationary events such as the introduction of the GST, Cyclone Yasi and the mining boom. It finds that the impact on prices of the 2001 GST was more than four times bigger (2.5 per cent) than the carbon price. 

To access the media release click here.  

Read Report
A summary of the full report, Carbon Price and the Cost of Living
A summary of the cost of living impacts for a number of household types.
Summarising the impact of the carbon price on electricity prices.

 Household Case Studies

Low-Income Family (with 2 kids) (PDF, <980KB)
Middle-Income Family (with 2 kids) (PDF, <980KB)
High-Income Family (with 2 kids) (PDF, <980KB)
Single Parent (with 2 kids) (PDF, <980KB)
Single Person (under 65) (PDF, <980KB)
Pensioner Couple (PDF, <980KB)
Pensioner Single (PDF, <980KB)


The online tool and above materials are based primarily on independent analysis undertaken by CSIRO and AECOM. This research was commissioned by The Climate Institute, with advice and input from CHOICE and ACOSS.

CSIRO/AECOM Full Report (PDF, 1.8MB)
CSIRO/AECOM Summary Report (PDF, 590KB)

Support for households

The Government has estimated that nine out of 10 Australian households will receive financial assistance through the carbon price reforms. This assistance will be delivered through a mix of tax cuts and increased benefit payments. Exactly how much assistance your household will receive depends on your specific circumstances, including your income level and the number of dependent children. For a more detailed estimate of the level of assistance you will receive, visit


Energy saving measures

The energy efficiency data in the tool and within the other materials is derived from analysis prepared for the Clean Energy Council by the Sustainability Advice Team and Pitt&Sherry. A technical note detailing all assumptions is available here.

For more information or to organise materials and support for your councils, schools, faith groups, business groups or other organisations, please email:


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