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30 December 2009
On November 27 the new Opposition Leader, Tony Abbott, first claimed that the CPRS would cost the average family $1100 in increased costs.
Mr Abbott has now made this claim at least ten times.
Mr Abbott has put personal credibility on the line when it comes to this $1100 figure.
He has personally endorsed and vouched for this analysis.
The time has come for Mr Abbott to back up his personal claim that the CPRS will cost the average family $1100.
You can't run an Opposition by just making things up.
If Mr Abbott can't back this figure up with reliable and accurate modelling it will be further proof that you cannot trust what Mr Abbott says when it comes to climate change.
If Mr Abbott has been using this $1100 figure with no credible and relevant modelling to back it up then his personal credibility on climate change will be seriously damaged.
The reality is that credible economic analysis on the impact of the CPRS is contained in detailed modelling undertaken by the Treasury.
The impact on households is based on this modelling, and has been updated to reflect changes in the expected carbon price.
This was the biggest economic modelling exercise in Australian history.
It found that the CPRS would cause prices to rise by 1.1 per cent in 2013 - on average costing $624 a year.
To help with cost increases, the Rudd Government will provide direct cash assistance to most Australian households.
A total of 90 per cent of all households will receive assistance and on average these households will receive around $660 of compensation in 2013.
On average low income households are $190 better off under the Carbon Pollution Reduction Scheme - because the average price impact for low income households is $420, while their average annual assistance is $610.
There are two simple facts Mr Abbott cannot avoid.
The first is that there is no cost free way to tackle climate change.
The second is that Mr Howard, Mr Costello, Mr Turnbull and the Rudd Government all chose a CPRS to act on climate change because:
Over thirty countries, including all of Europe, Japan, the United States of America, and New Zealand have either introduced or are introducing a CPRS.