Businesses question carbon tax

WARWICK businesses have been left in the dark after the government unveiled its carbon tax package on Sunday, with the tax set to hit local transport companies hard and failing to offer assistance to small businesses.

Fraser's Transport director Ross Fraser said his organisation was looking down the barrel of an annual $460,000 carbon tax bill, which he expects to be passed on in the form of a 2-3% increase in freight charges.

Mr Fraser said yesterday he believed the only reasonable thing to come out of the package was a two year moratorium, allowing transport companies to be excluded from the tax until 2014.

“Our industry did heavy lobbying with the government and (MP) Tony Windsor and I think the success of the lobbying put us back,” Mr Fraser said.

Despite Sunday's announcement, Mr Fraser admitted to being no wiser on the tax's function.

“I still have not found anyone who can tell me how lifting diesel by 6.85c per litre will help,” he said. “(The tax) is not going to have any effect at all, except it will cost more to send freight around Australia.”

Chamber of Commerce president David Littleproud concurred there were still too many unanswered questions following Sunday's announcement and said the details revealed were worrying.

Mr Littleproud feared the tax would increase beyond the indexed amounts and said compensation payments would be inadequate, or were non-existent.

“There is no direct compensation for small businesses – households are looked after but small businesses are not,” he said.

While households can expect an overall increase of around $9.90 per week under the scheme, the average compensation package will deliver around $10.10 per week.

To find out how much you can expect to be out of pocket under carbon tax, use the handy calculator located at www.cleanenergyfuture.gov.au/helping-households/household-assistance-estimator.



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