No GST on carbon tax permits, says climate change minister

With so many Australians already struggling with the financial impact of rising electricity and gas prices, it is disappointing to hear some retailers may be using the carbon tax as an excuse for unjustified price hikes.

But that appears to be the case, with minister for climate change and energy efficiency Greg Combet issuing a press release last week warning consumers of potential misleading pricing claims.

"Businesses and consumers should be aware that there is no GST on carbon price permits and should raise any concerns about misleading pricing claims with the Australian Competition and Consumer Commission," wrote Mr Combet (July 13).

"According to media reports today, one waste company is advising its customers that the carbon price is $25.30 a tonne including the GST. This is wrong and the Government has referred this claim to the ACCC."

According to Mr Combet, Australian GST laws have been specifically amended to clarify that pollution emitters are not required to pay government savings tax on carbon permits.

The release comes after several media agencies reported last week on claims that waste disposal firms J.J. Richards had informed customers that the financial impact of the carbon tax would be $25.30 per tonne "including GST".

Posted by Callum Fleming