Tag: Carbon Price Scheme

If you’re a small business intending to pass on the costs of the carbon tax to your customers and suppliers, you’d better be careful about it.

The Australian Competition and Consumer Commission (ACCC) is working on a guide to assist businesses in understanding their rights and obligations when making claims about the impact of the carbon price.

The Gillard Government’s carbon tax legislation has passed through Parliament, making it certain a tax of $23 per tonne of carbon on the country’s 500 worst polluters will begin in 2012, and businesses aren’t happy.

“It’s been a difficult debate but the debate is now concluded,” Prime Minister Julia Gillard said yesterday as the climate change bills were passed in the lower house of Parliament.

Accountants are expressing concern that the financial performance of their small business clients are being put in danger by the carbon tax, with many convinced SMBs won’t be adequately compensated by the Government when the tax is implemented.

Retailers remain concerned about the impact of the carbon tax, with a survey revealing 83 percent expect the tax will mean consumers spend less and an even larger number reporting it will have a negative impact on profitability.

Brad Callaughan offers up a few tips for small businesses to survive the impact of the carbon tax.

“Consumers are going to be the first losers as they’ll have to wear the price increase passed on from small businesses, and the second loser will be small business with landlords keen to pass on any increase to their costs.”

The Australian Workers’ Union (AWU) has placed its support behind Julia Gillard’s carbon tax, saying in a meeting yesterday no jobs need to be lost as a result of the scheme.

The Federal Government has granted additional funding to the Australian Competition and Consumer Commission (ACCC), to assist it in cracking down on businesses that gouge customers by making misleading carbon claims.

More clarity is needed around the Government’s carbon price policy, according to the Institute of Public Accountants (IPA), especially around the impact it will have on the 2 million Australian SMEs.