From today, almost 1.7 million Australian families will begin to receive carbon tax compensation payments.

More than $320 million will be distributed across the country to cushion the impact of the tax on families.

Amity Neumann reports.


Julia Gillard took to her computer this morning, entering cyberspace to answer the public’s questions on the budget.

Questions about the carbon tax and potential job loses seemed to steal the spotlight.

During the live chat forum, the Prime Minister said prices would increase 0.7%, but compensation for millions of families would outstrip the rises.

Over the next fortnight, those receiving Family Tax Benefit A or B will see extra pocket money delivered directly into their bank accounts.

Households receiving Part A of the allowance will pocket up to $110 for each child, while those on Family Tax Benefit B are set to collect up to $69.

Tax cuts for people earning under $89,000 a year, are expected to be delivered in July.

Tony Abbott, LNP leader: “The coalition is their only salvation from this toxic tax.”

Julia Gillard, Prime Minister: “There is nothing to fear when carbon pricing starts.”

For now, speculation about Labor’s leadership seems to have died down; but if the party’s polling numbers don’t improve, it could be a completely different story.

Amity Neumann, QUT News.