Business SA has expressed concern about local business competitiveness following the release of the Government’s carbon tax policy.
Business SA Chief Executive Officer, Peter Vaughan, said that the tax will have a major impact on the local economy.
“Introducing this carbon tax will provide a blow to the business community and overall competitiveness,” Mr Vaughan said.
“Local businesses are already struggling to cope with low confidence and rising costs, and the impact of this new tax will flow throughout the community.
“Despite the measures of compensation, as energy costs go up, prices will follow and this will hurt households, make businesses less competitive and put jobs at risk.
“There are many small and medium sized businesses that are not being compensated and they will feel the full brunt of this tax.”
Business SA conducted a survey of local businesses recently which revealed that 85 per cent of respondents believe that a carbon price will have a negative impact on their business.
“Our emissions pale into insignificance compared with the rest of the world and we certainly do not believe that this tax should be introduced before there is a binding global agreement,” Mr Vaughan said.
“Among the details of the tax is the starting point for the price on carbon, however what will be the end point?
“Key goods and services have been excluded from the tax and we need the guarantee that they will stay excluded.
“With most other countries not having a price on carbon, it will make our businesses less competitive and see more jobs move offshore.
“We look forward to a substantial education campaign, not political propaganda, to inform businesses and households about the impact of this carbon tax.”