Power and fuel costs making families nervous

Steve Lewis
Herald Sun
March 20, 2012

Just months before the carbon tax is introduced, soaring energy bills are ranked as the biggest concern by 27 per cent of consumers, according to a Galaxy poll.

The same proportion of consumers are equally worried about weekly supermarket bills while the price of fuel is ranked by 26 per cent as the biggest worry for the family budget.

Paying the mortgage is less of a concern for most families, with just 13 per cent ranking their repayments as their No.1 concern.

The results of the Galaxy poll, which involved 1051 people across Australia, highlights the challenge for the Gillard Government as it plans to introduce a carbon tax on July 1.

Treasury estimates this will add 10 per cent to energy bills and place further pressure on family budgets.

The Government will help offset these higher costs by increasing pension and family payments and offering tax cuts for many low and middle income families.

Conservative think tank the Institute of Public Affairs commissioned the Galaxy poll and said its results showed the perils of a carbon tax and mandatory renewable energy targets.

Across Australia, 30 per cent of voters said electricity prices were the biggest challenge to the weekly budget while petrol was rated highest by 28 per cent.

For low income families, the price of paying grocery bills is a bigger concern with 30 per cent ranking food as their biggest worry while just 5 per cent of households earning less than $40,000 cite mortgage payments.

The price of public transport barely ranks as a major concern, with just 3 per cent of those surveyed ranking it as their biggest challenge.

IPA climate change policy director Tim Wilson said the poll “clearly shows” that the price of electricity and petrol continued to make Australian families nervous.

The task of paying the mortgage is most acutely felt by households earning $70,000 and over, with 21 per cent calling it the biggest problem.

The IPA also seized on the findings to argue against regulating food prices, amid concerns that farmers are being dudded by the supermarket giants.

“It’s time politicians stopped attacking cheaper groceries, such as cheap milk, because Australians are feeling the pinch despite the general direction of prices going down,” Mr Wilson said.