It seems July 1 2012 is going to be a momentous day for industry and households alike, with both the Mining Tax (recently passed through the Senate on 19 March 2012) and the Carbon Tax to come into effect. There has been much commentary in the media on how this will impact Australians, however, it is important to look at the facts.

1. The Carbon Pricing Mechanism is aimed at 500 businesses Australia wide that generate over 25,000 tonnes of CO2-e emissions each year.

2. Of those 500 businesses, 100 are in coal or other mining industries.

3. If you are one of those businesses, you will have to register under the National Greenhouse and Energy Reporting System and are required to report emissions and surrender permits to match your emissions.

4. Cost is initially set to $23 per tonne of carbon released into the atmosphere which will gradually increase until 2015 when an emissions trading scheme comes into play.

5. For households, this means an increase in the price of certain goods to encourage the purchasing of more environmentally friendly products, however, compensation is offered. To calculate the cost and compensation for your household, visit https://www.cleanenergyfuture.gov.au/helping-households/household-assistance-estimator/.

6. Businesses will also be compensated to ensure they remain strong in the competitive international market. The most emissions-intensive and trade-exposed activities will receive 94.5% shielding from the carbon price, with other companies receiving 66% depending on how carbon intensive their production is. More incentives for companies can be found at: http://www.carbontax.net.au/industry-assistance/.

With three months until the new financial year, we still have a long time before we see changes to industry and households. However, the real question here is will it have any impact on Australia’s carbon emissions? All will be revealed.