PENSIONERS would have their carbon tax compensation paid upfront and the tax-free threshold for low-income earners would rise almost $9000 to $25,000 under recommendations now being considered by the Gillard government.
Julia Gillard's chief climate change adviser, Ross Garnaut, who handed his final report to the government yesterday, has called for compensation to be provided only to those on incomes up to $80,000, while higher income earners would have their tax rates or thresholds altered to ensure they did not receive any benefits from the increase in the tax-free threshold. Professor Garnaut has also rejected overcompensating pensioners because of recent increases to the pension payment, recommending they be reimbursed only for carbon price rises. But he recommended the petrol excise be offset to prevent rises at the bowser in the first year of a carbon tax and conceded that one reason compensation was necessary was rising electricity prices.
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