Carbon Price
Like it or not, unless something dramatic happens in Canberra, the Federal Government’s carbon pricing scheme will be fully operational on 1 July 2012.
Carbon pricing will affect Australian businesses in a number of ways:
- the top 500 (approx) emitters of greenhouse gases will be directly liable to pay for the right to emit;
- the imposition of a carbon price on transport fuels for some uses, such as off-road, by a reduction in tax credits;
- by the carbon price being passed along the supply chain, from directly liable entities to their customers and ultimately to the end user, variably according to bargaining position and contractual arrangements;
- opportunities through programs such as the Clean Technology Investment Program.
Businesses should:
- review medium- or long-term contractual arrangements to determine their liability for or entitlement to price increases on account of the carbon price;
- be aware of the likely impact of the carbon price when negotiating new contractual arrangements, including leases;
- be aware of reporting requirements under the National Greenhouse Emissions Reporting Act;
- be aware of restrictions on price gouging.
