The Gillard Government’s proposed Carbon Tax has been met with resistance in Parliament, the community and various business sectors. However even as criticism subsides, other developed countries are yet to take proactive action on climate change mitigation.

Large businesses in Australia have requested a price on carbon so that future directions may be managed with more certainty, as it's expected that a climate change mitigation policy will be implemented eventually. The earlier we have certainty, the stronger our business community and economy will be for it.

How will this affect Australian businesses and households?

Climate Change Minister Greg Combet is reported to have stated that the Carbon Tax will not significantly impact upon the overall cost of living, arguing that fair compensation for low-income households and pensioners will be provided. The Minister added that at this stage the proposed tax will target the1000 largest emitters and that it should not have an impact on consumer spending.

Companies trading and proposing to do business with those that fall within the carbon tax threshold will find there is greater emphasis on the monitoring and reporting of their carbon footprint. Australia’s largest emitters will also attempt to reduce their carbon footprint through all means possible, the supply chain identified as an area with excellent opportunities. At the time of tender we are likely to see heavier requirements for businesses to communicate their climate change policies, so the disclosure of efficiency strategies and carbon outputs will hold additional weight in the selection of partners and suppliers.

Where will the tax money received go?

The proposed funds are to be re-distributed to businesses and households. Further tax incentive programs, similar to the Green Building Fund, will be the likely outcome from retrieved carbon tax funds.

The commercial property industry is widely considered an area with excellent opportunities to make significant reductions in carbon through efficiency measures. It's possible to start to see excellent incentive programs and opportunities for owners and managers to make significant improvements with government support. The commercial property industry will be poised to capitalise on new government programs, many of which will use the NABERS rating tool to substantiate savings.

Now is an important time as any to understand your position and prepare property portfolios to take advantage of proposed funding opportunities.

To learn more about your exposure to the proposed Carbon Tax, please call Green Pass.

03 9428 9126
info@greenpass.com.au