Over 70 per cent of Australian companies believe carbon tax is here to stay

It may be generating controversy over rising electricity and gas prices, but 72 per cent of Australian firms believe the carbon price is here to stay.

That's according to a new document released by GE and the Economist Intelligence Unit today (June 26), entitled Cleaning Up: Australia's Readiness for a Low-Carbon Future.

The good news is that the carbon tax seems to be having the right effect. More than two-thirds of all the companies surveyed indicated that they already had some sort of carbon-reduction strategy in place.

That number is even higher in terms of companies who will be directly impacted by the carbon tax, with 85 per cent of those already having already introduced a carbon-reduction strategy, while a further nine per cent are in the process of introducing one.

That news might reassure the many Australian households facing increases to their utility bills as a result of the tax, which will vary depending on your location and choice of electricity and gas suppliers.

David Hone, the global climate change adviser at Shell, believes that businesses will need to commit to carbon reduction policies if they want to maintain profitability.

"It is absolutely in the interest of companies to help develop policies right from the beginning and stick with it," says Mr Hone.

"That way they can fend off or dilute any threats. Companies can’t just make demands and go home again."

Posted by Callum Fleming