Written by: Kristine Dewar
While large emitters and the general public have been vocal about their views on the predicted impacts of the recently released carbon tax, the impacts for Australia’s 1.9 million small businesses remain uncertain.
Many commentators have predicted that the cost of material inputs will rise as big polluters pass on the carbon tax; however, the magnitude of these price increases has not been quantified. Will the cost of material inputs increase by 3 or 4 cents, or 3 or 4 dollars? The Government has not released any detailed modelling showing the impact that the carbon tax will have on small business. Given that the impacts will differ between sectors, and as small businesses are so diverse, there is no one-size-fits-all model that can determine the carbon tax impact on the cost of materials.