Federal Finance Minister Penny Wong has assured charities that government assistance will be available to help them deal with the impact of a carbon tax.
The Salvation Army says it is bracing for an avalanche of useless household goods, dumped by people unwilling to pay higher rubbish tip fees as a result of the carbon tax.
The Salvation Army claims the tax will add $3.5 million to annual landfill costs for charitable groups.
Senator Wong says charities will not be left out in the cold when the carbon tax operates from July 1.
“We have put in place a fund for charities to help them with the transition to the carbon price,” she told ABC Radio on Wednesday.
Opposition climate change spokesman Greg Hunt said it was absurd that programs such as support for victims of domestic violence and the homeless could be at risk.
“This hit on charities shows the stupidity of this carbon tax and exposes it as a policy failure,” he said in a statement.
The Salvation Army warns the new tax will encourage struggling families to use the charity shops as a dumping ground for their unsaleable furniture and clothing rather than pay the cost of rubbish tips.
The Salvos say this could impact on the services they provide to about 300,000 people a year, including emergency accommodation and drug and alcohol counselling.
The charity estimates it will pay an extra $687,000 to $1.25 million in landfill fees.
