THE cost of living for households would rise by $16.60 a week under a $30 carbon tax, according to just released Treasury documents.

Treasury modelling shows the average household would face paying $4.20 a week more for electricity, $2.20 extra for gas, $3.60 more for automotive fuel and $1.70 extra for food.

This would work out to $863.20 a year for the average household.

The figures are based on petrol being included in the carbon tax and do not include any compensation for households or industry.

When petrol is excluded the overall weekly price rise for households is $11.70.



The documents, dated February 1, reveal that Climate Change Minister Greg Combet asked Treasury for the "weekly dollar impacts of a range of carbon prices for electricity gas, automotive fuel and food and the overall price impact on households''.

Prime Minister Julia Gillard announced the plan to have a carbon tax on February 25 but there was no detail on the size of the tax or the compensation. It is being negotiated with the Greens and minor parties.

The PM has promised "generous compensation'' for low and middle income households but not high-income earners. She said the tax would be paid directly by 1000 companies, although they are expected to pass it on to consumers.

The Government's climate change adviser Ross Garnaut has called for a carbon price between $20 and $30 and said the bottom 50 per cent of taxpayers should be fully compensated through tax cuts or welfare payments.

The Treasury documents say a $30 carbon price was modelled and they have made estimates for the effect on households of other prices. A $40 tax would add $22.10 to weekly household costs; a $10 tax would add $5.50.

Treasury says the figures are based on up to date information "undertaken since November 2010''.

hudsonp@heraldsun.com.au

Originally published as Gillard's $16.60 carbon tax hit