Carbon tax to increase bills by $200

Economic modelling has revealed that the average family may have to pay an additional $200 a year in bills if carbon tax is introduced, which might leave some households dipping into their savings accounts.

The study by Victoria's Ballieu government suggested that electricity bills could soar to between $1,500 and $2,000, reports the Herald Sun.

However, it is not simply utility costs that may rise, as small businesses may be forced to increase prices in order to cope with the tax.

It is thought the cost to the state's economy could be as high as $2.5. billion, with each tonne of carbon taxed at $25.

The tax was criticised by Carolyn Atkins, acting chief executive of the Victorian Council of Social Service, who asserted that ordinary families will struggle unless a compensation package is put in place.

Last month, figures from the Melbourne Institute revealed that Aussies are becoming more cautious with their money, with more people putting funds away in savings accounts.

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