Article: Victorians to be slugged with higer prices for almost everything

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Victorians to be slugged with higer prices for almost everything

Victorians to be slugged with higer prices for almost everything
Article from: Herald Sun

Geraldine Mitchell and Peter Jean

December 19, 2008 12:00am

VICTORIANS will be slugged with higher prices for almost all everyday items from New Year's Day.

Commuters will be slugged higher fares to use public transport and motorists stuck in gridlock will still have to pay more to use CityLink.

Gas and electricity prices will also rise 5 to 9 per cent, and water bills could soar as much as 23 per cent.

And wealthier families will no longer be eligible for the Federal Government's $5000 baby bonus, with restrictions to families who earn up to $75,000 in the first six months after the birth or adoption of a child.

The benefit will also be broken up into 13 fortnightly payments rather than a lump sum. But the benefit will be extended to people who adopt children aged up to 16 years.

Treasurer Wayne Swan earlier defended changes to the baby bonus, saying Labor had delivered on its election promises through more disciplined spending.

"We have delivered on our commitments by redirecting spending to more pressing priorities. We are doing what we said we would do."

The so called "sin taxes" -- tobacco and alcohol excises -- will increase in line with inflation in February, which could be as high as 4 per cent.

Many social security payments, including the carer and youth allowances and disability and double orphan pensions, will increase by up to $21 per fortnight.

Commuters will be slugged another 30c for a daily ticket to use Melbourne's overcrowded public transport network from New Year's Day. The new price list has been released and shows a daily zone 1 ticket will cost $6.80 while a two-hour ticket jumps 20c to $3.70.

The fare increases of 5 per cent are the highest in five years.

Public Transport Minister Lynne Kosky last week defended the price rise, saying that it was in line with CPI.

A 24-hour pass for cars on CityLink will rise 10c to $12 while light commercial vehicles will pay an extra 20c to $19.25.

The forecast rise in domestic gas and electricity prices could add $100 to a typical electricity bill every year and up to $80 to average gas costs