Snap and save

Find out how much
I can save

START MY SWITCH

Government denies carbon tax is impacting small businesses

The government has shot down claims that the carbon tax is adversely impacting small businesses 16000646 800484970 0 0 14045696 300

The federal government has responded to recent news that the carbon tax may be adversely affecting small firms by asserting that significant assistance is being provided to these businesses.

A story published by News Ltd earlier this week (August 20) saw 186 small businesses surveyed about the impact of rising electricity prices brought on by the carbon price legislation.

Around 50 per cent of respondents reportedly claimed that they had been adversely impacted by these increases to the price of power, with just eight per cent saying that they were in favour of the carbon tax.

However the minister for small business, Brendan O'Connor, has responded by saying that the typical small retail business in Australia will have seen an increase of less than 0.2 per cent in its total costs due to the carbon price.

"The Government expects small businesses to pass these impacts on to the consumer, which is why we are providing households with tax cuts, higher family payments and increases in pensions and benefits," reads a statement published by Mr O'Connor's office on August 20.

Mr O'Connor also asserts that a number of measures have been taken to help minimise the impact of the carbon tax on small businesses, such as an increase to the small business instant asset write off threshold and a $40 million energy efficiency information grants program.

Small businesses who are concerned that they are paying too much for power might consider undergoing an electricity comparison check to determine whether they are with the best electricity supplier to suit their needs.

Posted by Charlie Moore