Tax facts: Brendan O’Connor addresses Wednesday’s forum.
By Cherie Donnellan
THE CARBON tax will push faltering small local businesses over the edge, a Geelong accounting firm has warned.
WHK Geelong principal Anne Lockwood urged businesses to check their carbon tax exposure immediately.
A MYOB Business Monitor survey last week revealed almost half of Australia’s small businesses were “uninformed” about the legislation’s likely impact.
Many local businesses were leaving carbon tax preparations to the last minute, Ms Lockwood said.
“If a business is teetering on edge, and a lot are, this will push them over. I don’t think we know the full impact as yet, even though it starts on July 1, but businesses should budget for an average increase in costs of five per cent.”
Ms Lockwood said most business owners were aware of direct carbon tax cost increases like electricity but were in the dark on indirect costs.
“They haven’t thought about water, rates, rents, transport or waste disposal and most will face increased costs of product in their supply chain.”
Federal Small Business Minister Brendan O’Connor, who visited Geelong on Wednesday to allay business fears over the carbon tax, said he understood the concerns.
“Mr Abbott is playing Chicken Little by telling businesses the sky is falling but I’m here to say none of it’s true.”
Mr O’Connor said the “facts” of the tax would be revealed from July 1.
“Experience will reassure people that it’s not going to change the way we live. I understand people are concerned but the impact will be negligible.”
