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The Carbon tax will also hit the cost of running a business. Small businesses may not have to pay the Carbon Tax, but they will be indirectly affected via downstream impacts.

Carbon Tax will:

  • Increase operating costs
  • Increase energy costs (e.g. electicity, gas, fuel)
  • Increase in cost of freight, transport and business travel
  • Increase in waste removal
  • Increase of goods and products manufactured in Australia
  • Increase workload and compliance burden

Taxed industries may introduce new trade policies, forcing all business partners to comply with a new trade policy to be low carbon emitters. In order to maintain their business relationship, smaller businesses will have to refine their systems, services and products, which could lead to an increase in costs and compliance burdens. Therefore, affecting their pricing strategies. Any additional costs will have to be recovered. Increasing their goods and service prices is an easy way to recoup these costs.  For example, expect airlines and other industries required to pay for carbon to charge more.

Ultimately, this will flow through to the consumer, the average Australian.