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Carbon tax: small business not immune

Although only around 500 entities will be directly affected, a recent report by the accounting firm – Managing the commercial implications of a price on carbon – found that smaller businesses need to prepare to meet the additional cost of carbon emissions.

“The introduction of the fixed carbon price has implications for all business sectors,” states the report.

“Everything from small business and domestic property through to power generation and inward investment will be influenced by this change.”

The report advises companies to consider the emissions embedded within the supply chain, particularly the extent of their electricity usage. Many small to medium-sized businesses will be eligible for transitional arrangements and assistance from the Federal Government, which organisations should investigate.

The report also points out that one way to reduce exposure to increased cost would be to minimise emissions by investing in low-emission technologies and energy efficient capital equipment. The Federal Government is also offering a range of grants to support renewable energy projects.

While the carbon price will be fixed at $23 per tonne when it?s introduced in July next year, the tax will become a market-based emissions trading scheme by 2015.

Source: KPMG

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