1. Carbon Tax What does it mean for you? www.lovetts.com.au

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3. Carbon Tax: What will change? Imposition of price on carbon Fuel tax changes Personal tax Welfare increases__________________________________________ Other areas include: Industry assistance, Carbon farming and Incentives for renewables

4. What is carbon pricing Sites emitting 25,000 tonnes of carbon dioxide per year estimated at 500 sites Will pay $23/tonne (indexed for 3 years) 2015 price will be set by government auction (with a price floor) Sites will need to purchase carbon permits from Government for each tonne of carbon emitted Trade exposed industries (steel) will certain receive free carbon credits

5. Big organisations COMPANY CO2 EMISSIONS POTENTIAL CARBON (million tonnes) TAX BILL ($ million)Anglo American 4 $ 93BM Alliance 2.5 $ 57Delta Energy 20.5 $ 470Macquarie Generation 23.4 $ 538Origin Energy 1.9 $ 43Qantas 4.0 $ 90Rio Tinto 7.7 $ 177Virgin 1.7 $ 38Woodside 8.4 $ 193Xstrata Holdings 2.7 $ 62Source of Emissions Data: National Greenhouse & Energy Report 2009-2010

6. Carbon TaxImpacts on businesses

7. Business fuel tax changes Agriculture & fisheries are exempt Currently, businesses can claim fuel tax credits for heavy transport and off-road use Credit will be reduced from 2014/15 for heavy transport by amount equivalent to carbon price Credit will be reduced for off-road use from 2012-13 for mining, marine transport, construction, manufacturing, wholesale/retail, property management & landscaping

8. Aviation fuel Aviation fuel for domestic flights will be subject to an increase equivalent to the $23/tonne (Maybe 5c per litre) would be $115m for Qantas Airlines will be able to opt-in to the carbon pricing scheme instead of paying the additional fuel tax after a year Likely that Qantas and Virgin will opt-in

9. Carbon TaxImpacts on individuals

10. Personal income taxFirst threshold currently 15% at $6k Increase to 19% at $18k next year Increase to 19% at $19k in 2015-16Second threshold currently 30% at $37k Increase to 32.5% next year Increase to 33% in 2015-16

11. Low income tax offset Increases effective tax free threshold Will be reduced meaning the effective tax free thresholds are: Now $16k Next year $20k 2015-16 $21k

12. Increases in Welfare Payments Age pension goes up 1.7% Advance payments Family Tax Benefits go up 1.7% Self funded retirees might get $510 per couple in seniors supplement (if on similar income to age pensioner)

13. RecommendationsCarbon tax Factor increases in costs Review products and services pricing Reduce energy consumption Budget for reduced fuel tax credits Be careful with statements about carbon tax and your prices - ACCC

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