CARBON TAX AND CLEAN ENERGY PACKAGE
The long-awaited announcement by the Government of its clean energy and carbon pollution reduction package now gives business and industry some certainty. Now that the price on carbon has been announced and a series of associated strategies and ecomomic programs made public, our industry must now prepare to respond to a new set of economic circumstances.
Prior to the announcement of the plan the main concerns for ASGA have been two fold;
What would be the effect of the package on the cost of doing business?
What would be the effect on household disposable income and overall consumer spending and consumer sentiment?
Some key features of the clean energy carbon pollution reduction package;
- Consumer Prices
- $15billion worth of tax cuts and special payments to offset increased costs.
To offset potential increases in consumer prices the Government has announced tax cuts and payments which will deliver on average a $10.10 saving per week to households. Income tax reductions and payments to low and middle income individuals and families have been announced to offset any increases that household's may face owing to energy prices and other costs.
Pensioners and recipients of family payments will receive an additional 1.7% supplement which it is anticipated will offset the predicted .7% increase to costs, ensuring most pensioners and low income families have more disposable income under the scheme.
- Investment in renewable energy
- Fuel
- Grants
The Government will establish a $40 million Energy Efficiency Information Grants program to provide information to small to medium businesses and community organisations on practical measures they can take to reduce their energy costs.
- Technology advice for small businesses
The Government will inject an extra $5 million over four years to improve delivery of clean technology advice and other non-grant business support programs to small and medium businesses. These include the Industry Capability Network, Supplier Advocates and Enterprise Connect. Increasing the business asset write-off For businesses with an aggregated turnover of less than $2 million a year, the small business instant asset write-off threshold will be increased from $5,000 to $6,500 for depreciable assets from the 2012-13 income year.
- Increasing the instant asset write-off
The existing instant asset write-off improves business cash flow by providing an immediate income tax deduction for the cost of eligible assets. Increasing the amount businesses can write off immediately to $6,500 will increase cash flow and assist small business to grow and invest in new equipment.
Of particular importance is how ASGA can assist our industry to reduce the impact and ensure that we continue to grow and propser. Assisting members to reduce energy and occupancy costs will be a priority for ASGA, as well as providing services and programs to assist members to respond to the changing marketlace shifts and take advantage of new opportunities.
The Government has established a support-line for small business to access to information and referrals to government services.
Telephone: 1800 77 7275 Email: This e-mail address is being protected from spambots. You need JavaScript enabled to view it
More information can be found at http://www.cleanenergyfuture.gov.au./
Feedback
ASGA is keen to hear your feedback on the Carbon tax, on the scheme, the effect on your business and how our industry can work together on a profitable clean energy future.
Do you believe that we must reduce carbon pollution?
Do you believe that Government needs to regulate or legislate to ensure reductions in carbon pollution?
What are your views on the Government's current package?
Please contact me at This e-mail address is being protected from spambots. You need JavaScript enabled to view it
