SMEs unsure about carbon tax

SMALL businesses and industry groups are calling for more clarity on the federal government’s carbon price policy and the impact it will have on small and medium-sized enterprises.

Institute of Public Accountants CEO Andrew Conway said last week, after the government released the first details of the carbon price policy, SME owners were no closer to knowing how the carbon tax would affect them.

“It is clear that more modelling is urgently needed to assess the impact that it will have on SMEs across a range of industries from retailers to manufacturers,” Mr Conway said.

He also expressed his concern that the only direct benefit small business owners would receive as a result of the policy would be in the reform of personal income tax.

“We are deeply disappointed that there will be no direct assistance provided to the small business sector – many of whom are already feeling the pinch,” Mr Conway said.

“As we move closer to 2012, it will become vital for SMEs to identify new ways of delivering their products and services more efficiently to help minimise the impact to their bottom line.”

Meanwhile, the Sensis Business Index has shown that 38 per cent of SMEs in WA said they did not understand the proposed carbon tax and 52 per cent said they only partially understood the tax.

In addition, more than half of WA’s SMEs said a carbon tax would have a negative impact on their business, with 11 per cent saying they would consider closing or selling their business.