Putting a price on carbon could provide the catalyst for Australian businesses to lead globally. The July Carbon Tax could be good for business, but MYOB survey shows confusion exists for small business. It will surely strengthen their desire to leverage lower carbon alternatives, seeking smarter, more cost-effective ways of running their venture. There will be tangible advantages for businesses that take a proactive approach to reducing energy and material consumption, and lowering production costs in the wake of the new legislation.
A key point for business owners to note about the Carbon Tax legislation is that the top 500 polluters will be the ones directly paying the carbon price. For the balance of Australian businesses, there is no direct ‘tax’ or additional paperwork burden. Instead, the tax will come in the form of indirect increases in costs such as business travel, freight, waste removal and utilities.
MYOB recently surveyed business owners and managers on the contentious carbon tax. The March 2012 Business Monitor report uncovered widespread confusion about what a price on carbon means for them. Despite the tax’s imminent introduction, 42 per cent of small to medium business operators didn’t have a good understanding of the impact the tax will have on their business.
The burden of these cost increases is not intended to sit with small business. Consumers have been compensated for the increase in these costs and businesses should feel confident to pass these cost increases on to customers through higher prices. Of course those that can lower the use of these services could be at a competitive advantage, but no business should go backwards from this change in the form of taxation. The July Carbon Tax could be good for business, so don’t allow confusion – get a new perspective.
See more at Business Spectator HERE