Winners:
- Low income households.
- Specific renewable projects seeking subsidies.
- Snowy and Tasmanian hydro schemes.
- Land owners.
- Some professionals advising companies on their carbon tax policies.
Losers:
- High emission power generators.
- Coal mines.
- Steel and aluminium sectors.
- Most manufacturers.
- Anyone earning more than $80,000 per annum.
What can you do in your business to prepare? You need to understand your emissions’ intensity. There are ways of reducing your energy consumption. Carbon costs will be passed through all types of suppliers, not just power and transport. Can you find ways to reduce the costs by undertaking new methods of production? Can you produce a more efficient delivery of products or service procedures? Could you contract with other suppliers who have lower carbon costs?
It is estimated that Carbon Tax will increase power prices by 10% – 20% over the next 2 – 3 years. One of the key issues is determining if suppliers can change the price they charge for long term contracts. For everyone else without long term contracts, suppliers will be charging more for their products to try and recoup the Carbon Tax that they have paid.
So, the key question that SMEs need to answer is – “Can you pass on the Carbon Tax influence on prices to your customers?” What will this do to your competitive position in the market place? There is going to be some government funding available to assist in research and development and the actual development of products that reduce carbon emissions. We will provide you with details of these schemes as they are announced. If you would like to discuss the potential impact of the Carbon Tax on your business operations, please do not hesitate to contact us.
