Small business has been given further guidance on how to prepare for the carbon tax, as a KPMG report notes that although the tax will be directly targeted at just 500 entities, the cost of permits to the biggest polluters will be passed through the supply chain.
“The introduction of the fixed carbon price has implications for all business sectors,” the report by professional services group KPMG and senior finance executives Group of 100 says.
“Everything from small business and domestic property through to power generation and inward investment will be influenced by this change,” the report, entitled Managing the commercial implications of a price on carbon, says.
It notes that although only organisations emitting more than 25,000 tonnes of carbon dioxide equivalents per annum are directly targeted by the tax, businesses across the board need to “consider emissions embedded within the supply chain, as well as the extent of their electricity usage”.
It advises all entities to:
It adds that under the Clean Energy package, passed this month, there are:
For companies required to buy carbon permits, the report says the same rigour that “applies to financial reporting needs to apply to emission data, including clear formalised reporting guidelines, effective use of systems, controls for capturing, calculating, collating and reporting emissions.”
It adds that controls around carbon emission data collection systems, which have historically been weak, will need to improve under the new laws.
The report says the main areas to be targeted under the tax are stationary energy, industrial processes, gas and non-transport fuel, fugitive elements, and landfill waste treatment businesses.
The tax, fixed at $23 per tonne from July 2012, will morph into a flexible, market-based price three years later.
Smart Company is the leading online publication in Australia for free news, information and resources catering to Australia’s entrepreneurs, small and medium business owners and business managers.
