NSW local council rates will rise by at least $14 million because of the carbon tax, the state government says.
The tax is due to take effect from July 1, with polluters initially paying $23 per tonne of carbon released into the atmosphere.
The cost per tonne will rise until 2015, when the nation moves to a market-based emissions trading scheme, which involves companies buying and selling permits allowing them to pollute up to a set limit.
But NSW Local Government Minister Don Page says the carbon tax will force local authorities to increase their rates, with no compensation on offer to offset the rise.
“It’s not only energy bills where local residents will feel the impact of the carbon tax,” Mr Page said.
“They are also going to cop it in the hip pocket when it comes time to pay their council rates.
“Unlike some individuals who will receive some compensation, councils will receive no compensation, so ratepayers will cop it.”
As an example, Mr Page said City of Sydney council would have to collect an additional $921,327 in rates because of the carbon tax.
Wollongong City Council will have to collect an extra $478,764 and Blacktown City Council an extra $459,598.
Councils across the state would have to collect similar additional amounts, according to Mr Page.
He said the increased costs were associated with councils providing services such as waste water treatment plants.