The Gillard government's carbon tax is set to come in on July 1 2012 and indications are that it will lead to an increase in prices.
Reports suggest that prices will increase by only 0.7% and it is expected that most businesses will pass this increase in costs on to their customers.
The government has brought in various solutions to help ease the pain on households and business.
There will be an increase in payments to pensioners, families and those on government allowances. The Clean Energy assistance supplements may also be paid to those in this group.
Changes have been made to the tax free threshold and low income tax offsets. With the tax free threshold increasing to $18,200, any amount under that you don't have to pay tax on. This is more than triple what it was before the carbon tax.
For small businesses, the government is introducing changes to help ease the burden of increasing costs. This includes increasing the immediate asset write-off amount from $1,000 to $6,500.
Are you still confused about the changes? That's ok, give us a call and we will happily help you out.