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.
According to a survey conducted by the Institute of Public Accountants (IPA), 70 percent are worried about the financial performance of their small business clients and 66 percent believe there hasn’t been enough consideration about how the tax will impact SMBs.
IPA CEO Andrew Conway, the institute’s members are trusted advisors of the local small business community and he’s alarmed many have a bleak outlook for SMBs over the next 12 months.
“We are not talking about one industry; we are talking about a pessimistic outlook across the entire small business community in Australia.”
“Despite the Government stating that only the top polluters will be impacted with the introduction of the carbon tax, it seems that the interests of small business have not been considered. It is disheartening to see that those who are already feeling the financial pinch will continue to do so and that the only direct benefit to small business will be in the reform of personal income tax.”
The survey also found that 67 percent of accountants believe not enough adequate information has been provided to small business to determine how the carbon tax may affect them.
Respondents said the sectors likely to be most impacted by the carbon tax will be energy, manufacturing, construction and mining.
“The carbon tax is a significant business issue that is of concern for our members and their clients. The Institute will continue to provide a voice for the two million small business owners and operators,” Conway added.
The IPA survey comes just days after the Australian Retailers Association released its carbon tax survey, which revealed 83 percent of retailers expect the tax will mean consumers spend less and over 85 percent expect it will have a negative impact on profitability.