Media Release

Charting the course of carbon for small business

Small business owners need to prepare for any adjustments required in response to the passing of today’s carbon legislation, according to the Institute of Chartered Accountants in Australia.

‘While it’s some consolation that small businesses do not need to monitor and measure their carbon emissions under this new law, they may be pressured either by cost increases or through changes in demand driven by overall adjustments in investment and economic activity,’ says the Institute’s manager of sustainability, Geraldine Magarey.

‘Small business owners are encouraged to take stock and prepare for the impact of the price on carbon, which takes effect next July. A few suggestions include understanding the supply chain pressures, determining the effect on competitive positioning, determining adjustments to pricing and finding out what government support is out there for small businesses, according to a recent article in our Charter magazine by consultancy firm, Expense Reduction Analysts,’ she says.

The Institute has supported a market-based mechanism to price carbon emissions in order to meet the bipartisan policy of a 5% reduction in emissions by 2020 and to provide certainty for business. The Institute has been a strong advocate of complementary tax measures to be introduced alongside the carbon price, including incentivising renewable energy projects and workforce relocation to remote regions, tax measures encouraging energy efficiency improvements, and allowances for the primary production sector.

While renewable energy grants announced by the government will help to drive some business investment in new technology, putting in place a broad range of complementary measures such as a green business investment tax allowance would do even more to encourage the sort of investment we need in our future.

Australia will have a carbon price scheme from 1 July, 2012 after the Senate passed the legislation to establish the Clean Energy Future Package.

Article last Updated 8 November 2011