Carbon Tax Stinging Small Business

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The first electricity bills of the financial year are coming in and the Carbon Tax is starting to sting. And it is local small businesses that are bearing the brunt.

The Malvernvale Hotel received their first power bill after the introduction of the Carbon Tax only to discover it had increased from $6,005.38 in June to $7,365.37 in July, a rise of $1,359.99.

For the month of July the ‘Carbon Charge’ was $1,162.87 which represents 85.5% of the increase and 15.8% of the total bill.

Kelly O’Dwyer MP, Federal Member for Higgins said “Julia Gillard has consistently claimed the Carbon Tax would only increase electricity bills by 10%. Clearly this is not the case.”

Small business is going to feel the most pain when it comes to the Carbon Tax. They receive no compensation and can only pass on the costs in what is already a very tough retail environment.”

“According to the government’s own figures the tax will go up over the years and the flow-through effects have only just started to be felt. This means even higher prices in the future.”

The owner of the popular Malvernvale Hotel added “I was stunned when I got my latest electricity bill. Based on the figures, the Carbon Tax alone will cost my business over $12,000 a year in increased electricity costs. This is only the direct increases; my suppliers are yet to factor in their own price rises. My concern is that as my suppliers start to increase their prices it will force me to either raise my prices even higher or make decisions about staffing levels, neither of which I want to do.  The Carbon Tax simply makes doing business more difficult.”

For further information please contact Andrew Danos in the office of Kelly O’Dwyer MP on

(03) 9822 4422.