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There's really only a benefit in some states however and even that is at least partially offset. There's 3 carbon-based fossil fuels we use, and only one of them is getting cheaper for most under this plan whilst the other two get more expensive.

Oil (petrol and diesel) - gets more expensive due to fuel excise indexation.

Gas - gets more expensive in Qld, NSW, ACT, Vic, Tas and SA (but not WA or NT) due to the move to export parity pricing 3 years from now.

So overall, there's a benefit in WA and the NT definitely, and a lesser benefit in Qld and NSW. In Vic and SA the rising gas price cancels out the benefits for most households, and Tas is a net gainer from the carbon tax anyway thus stands to lose.

So it's a $550 saving for a minority (WA, NT), a lesser saving for a large chunk of the population (Qld, NSW), no real saving for another big chunk (Vic, SA) and a loss for a minority (Tas). It sure ain't an across the board saving that's for sure.

And that is, of course, assuming that the "savings" don't simply disappear as an increase in profits rather than a reduction in prices. Coal is primarily used to generate electricity, and with gas set to become uneconomic for baseload (2017), a significant amount of coal-fired capacity removed from the market and the reduction in hydro output (2014 and further in 2015) it's quite likely that the end of the carbon tax won't be fully reflected in wholesale power prices at least after 2017.

More politics....