Through 2012 the Australian community will realise that the Federal Government is determined to change the way that Australians take energy for granted. We are the number one polluters per capita in the World. Even exceeding United States levels. The Government has committed to reducing our carbon emission levels by 25% of 2000 levels by 2020.
To do this they are forcing Australia’s major polluters to pay a carbon tax. This cost will spread across the supply chain, thus forcing the next level down to change their behaviour and so on.
There is no legislation currently forcing businesses to conduct carbon tax audits, unless they are a major polluter. However , major companies have already begun to contact their suppliers to ask what steps the supplier is taking to reduce their carbon footprint. As we know, if you can measure it you can manage it. The only way to do that is via a carbon tax audit.
Carbon Tax Audit
Banks and Business Brokers are aware of the changes that are coming, and therefore prefer that a carbon tax audit is prepared, because that represents a true picture of a business’s financial position.
Grants are now available, through AusIndustry, to support carbon reduction capital projects. Targeted primarily at the food industry, other industry groups are also eligible, provided certain criteria are met.
This is what KPMG wrote in 2011 in respect of the future that is now here:
“New systems and processed for carbon related data and financial issues. A carbon price will have consequences for all Australian business. Implications will arise as a result direct and indirect exposures to a carbon price, requiring the management of strategic, operational and financial issues. Successful management of these issues will require a sound understanding of the implications, robust governance structures, strong data integrity, accurate reporting and credible disclosure processes.
Opportunities to reduce carbon cost
Previous analysis of carbon abatement options ( such as fuel switching, heat recovery, energy efficiency retrofits etc.) will now require revisiting. Renewed analysis may result in new opportunities to invest in abatement activities that were previously considered too costly because of their low/negative returns or long pay back periods.”
Be ready for July 1st 2012
There will be a huge amount of activity after July 1st 2012. The businesses that prepare for the future will be able to determine their future.
For further information about carbon tax related issues, or to be put in touch with experts in the field, including sourcing of carbon audits, please call Peter Morgan at Munro Accountants on 07 5539 9777 or email firstname.lastname@example.org.