14 Jun

Update on the Impending Carbon Tax

Over the past number of months, Cannon Logistics has been keeping an eye on the progress of the impending carbon tax which is set to go into action on 1 July, 2012.

Given the impact that the carbon tax is going to have on families and businesses alike, we have been opposed to the introduction of such a tax. And while there were some rumblings about Queensland premier Campbell Newman taking actions to try and have the carbon tax stopped, these have mostly come to an end.

Early in May, Campbell Newman announced he would be backing off trying to stop the carbon tax in the High Court. He said that this was unfortunately due to the fact that those who drafted the tax have made it as bulletproof as possible. Ultimately, he was advised to back down.

While it is not 100% clear what other states have decided in terms of taking this matter to the High Court, it is sad to see Queensland’s premier – a key vocal opposer on this issue – back down.

Now less than a month out, it seems as though the carbon tax will be unstoppable for now. While spin is coming from both sides of the government, it still doesn’t resolve the one key issue – how businesses and families will cope.

Whilst the trucking industry is being spared some direct impacts on Carbon Tax until 2014,  we anticipate all of our supplies of electricity, cold store rent, parts and mechanical supplies and other business staples, will all go up from the carbon tax which in turn will impact on our cost base and then this impact will be passed onto our customers.

We are not exactly certain of the quantum of increase in costs caused by the Carbon Tax, but will monitor for the first two months (i.e July and August) and then ascertain what we will do with our rates structure.

More so, why is that the Labor government has been more concerned trying to convince the Australian population it won’t hurt us that much instead of spelling out explicitly how much it will reduce our carbon footprint by? What about the supposed chief purpose of this tax? The health of our environment for us and future generations.

At this point it certainly seems like there is no legal recourse to stop such a tax. However, there is still the fact that unless the Labor party does something miraculous they will not win the next election. It may still be a year away, but it has been well documented that the LNP wants no part of the carbon tax.

So if the LNP does win the next election – and all signs point to yes – then they will most likely seek out to end the carbon tax altogether or significantly redesign it at the very least. And certain Labor members have gone on record as saying they wouldn’t necessarily oppose any LNP-designed changes or abolishments of the tax. There’s still a silver lining.

Are you worried about the carbon tax and how it could impact on you? Share your opinions in the comments below.

* Image source: Danilo Rizzuti / FreeDigitalPhotos.net

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PO BOX 475 Cannon Hill Q 4170


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