The Carbon Price and the Cost of Living - The Climate Institute

AECOM
The Carbon Price and the Cost of Living
9 November 2011
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estimates of assistance depending on individual circumstances 15 . This should be used to calculate actual
assistance for a specific household.
For the purpose of this study, the amount of assistance received is based on the average income for each
household type (couples with dependent children, couples with no dependent children, single parent with
dependent children and single adult) for different income level groups (low, moderate, middle and high).
Assistance has been calculated based on tables prepared by the Government 16 . Where income falls between two
income groups reported in the Government assistance tables, the assistance was assumed to be placed in the
lower income bracket. For more details on how assistance is calculated see Appendix B.
- The report provides a point estimate of assistance for a household with the income and expenditure shown.
While these households are considered representative of different types of households, the estimates do not
represent ‘average impacts’ or ‘average assistance’ for these groups of households.
The study also calculates impacts and assistance as a share of total expenditure. For low income households it is
important to note that reported expenditure in the Household Expenditure Survey is 20-40% more than reported
income. For example, reported expenditure by low income couples with dependent children is around a third more
than their income. This difference between income and expenditure could reflect ‘negative saving’ (or running
down investments), or discrepancies between income and expenditure estimates by respondents.
15
https://www.cleanenergyfuture.gov.au/helping-households/household-assistance-estimator/
16
Tables are available on the following link: http://www.cleanenergyfuture.gov.au/wpcontent/uploads/2011/07/supporting-australian-households.pdf