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CARBON PRICING FREQUENTLY ASKED QUESTIONS
The ABS will not be able to quantify the impact of carbon pricing, compensation or other government incentives and will not be producing estimates of price change exclusive of the carbon price or measuring the impact of the carbon price. As a result of the introduction of the carbon price, businesses may adjust their prices which will be reflected, as appropriate in the suite of price indexes compiled and published by the Australian Bureau of Statistics (ABS).
The EPI measures changes in the prices received by Australian producers for their exports. Therefore, any changes in the prices received by Australian businesses as a result of the introduction of the carbon price will be reflected in the EPI.
The IPI measures changes in the prices paid by Australian producers for their imports. The carbon price will only apply to businesses operating within Australia, therefore imports are not expected to be affected by the introduction of the carbon price.
The carbon price was introduced on 1 July 2012. To the extent that any changes in prices occur, these will be measured in the period that they occur. Some businesses have indicated that their prices will increase from 1 July 2012. This will be reflected in the appropriate September quarter 2012 price index publication.
The ABS is unable to measure the impact of the carbon price. It is therefore not known if the changes in prices are a one-off impact or continuing into future quarters. Further information on the estimated impacts on prices can be found in the publication Strong Growth, Low Pollution - Modelling a Carbon Price (The Treasury, 2011).
Companies operating large pollution emitting facilities, particularly those that generate in excess of 25,000 tonnes of carbon dioxide each year, will be liable to pay the carbon price. When prices change, other industries may be impacted indirectly when they consume products produced by industries directly affected by a carbon price. This may in turn create a flow-through effect to other businesses as they consume those products in subsequent periods. Further information on the estimated impacts by industry can be found in the publication Strong Growth, Low Pollution - Modelling a Carbon Price (The Treasury, 2011).
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