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Carbon tax added 14.5% to energy costs, study finds

A recent survey has found that Australian businesses have seen their energy costs increase by 14.5 per cent since the introduction of the carbon tax.

An Australian Industry Group (AIG) analysis has found that nearly half of businesses in significant areas of the economy saw their input costs immediately increase after the tax came into effect on July 1.

Chief executive of AIG Innes Willox said the effect of rising electricity prices was moderately the same across all sectors.

He explained: "In our survey of 485 businesses conducted at the end of November, estimated energy cost increases stemming from the carbon tax were broadly consistent across sectors.

"Manufacturing businesses estimated an average rise of 14.5 per cent, service providers estimated an average rise of 13.6 per cent and construction companies estimated an average increase of 14.8 per cent."

Mr Willox added that estimations for price increases were probably over-exaggerated as a result of the exposure of the carbon tax.

He continued by saying that the net impact of the tax has varied across different sectors, with food manufacturers seeing a 90 per cent increase. Because of this, and their ineligibility for the trade exposed industry assistance program, they are facing higher costs - as well as major retailers being unwilling to pay additional prices.

Posted by Charlie Moore