• Register
Return to: Home > News > Tax > Australia's large emitters brace for carbon tax

Australia's large emitters brace for carbon tax

The Australian parliament has passed the carbon tax bill that imposes a levy of A$23 ($23.8) a tonne for the country's 500 worst polluters.

The Australian Senate approved the tax in a 36-32 vote, following a 74-72 vote last month in the House of Representatives.

The new tax will hit several business sectors including the countries’ booming mining sector.

The new tax has been widely opposed by some stakeholders and its recent approval has been interpreted as support for the government’s climate and global warming agenda.

KMPG Australia chief executive Geoff Wilson told the International Accounting Bulletin the new tax will have a, “significant effect on many businesses in Australia particularly the high carbon emitters”.

“We are already seeing a significant upturn in advice clients need on the future regime. Because we now have an established starting price for carbon that is finding its way into key investment decisions that Australian businesses are making,” he said.

BDO Australia managing partner Tony Schiffmannsaid the firm has already done some work in helping clients understand the coming legislation.

“It will impact the largest companies directly and our early indications show that other smaller companies will also be impacted, but not materially,” he said.

Deloitte Australia chief executive Giam Swiegers said some of the firm’s clients are looking at the new law favourably and some a bit less

“We are already seeing a surge in helping our clients understand the implication of the new tax and seeing several opportunities for us,” he added.

The new carbon tax will come into effect in July 2012 and move to an emissions trading scheme from July 2015.

The Australian government is also considering introducing mining tax legislation.  Recently Prime Minister Julia Gillard’s government introduced legislation into parliament for a 30 percent tax on coal and iron-ore profits.

Top Content

    Time pressure: Facing up to mental health

    In an ‘always on’ culture, it is becoming increasingly difficult to manage a healthy work-life balance. While companies are beginning to address this problem by introducing different support systems, Joe Pickard finds more could be done to ensure the wellbeing of the professions workforce.

    read more

    Venezuela: the race for the dollar

    With a new currency following hyperinflation, large sections of the population emigrating to neighbouring countries, an economy on the brink of collapse and no apparent solution coming from the government, Jonathan Minter finds a profession struggling to stay afloat in Venezuela.

    read more

    Brazil: transparency and control

    Brazilian accountants have an optimistic view of the impact of more-regular reporting and the implications of audit controversies for the profession. Paul Golden reports.

    read more

    Argentina: looking for a clearer view

    The Argentine accounting profession continues to grapple with the impacts of a weak economy and a culture of financial corruption. Paul Golden takes a closer look.

    read more

    Blockchain: adapting to disruptive tech

    In the relatively few years since digital currencies first began using blockchain technology, the array of potential applications has grown significantly – and continues to expand. Dan Balla, Matthew Schell and Dave Uhryniak from Crowe look at how it impacts accountancy.

    read more
Privacy Policy

We have updated our privacy policy. In the latest update it explains what cookies are and how we use them on our site. To learn more about cookies and their benefits, please view our privacy policy. Please be aware that parts of this site will not function correctly if you disable cookies. By continuing to use this site, you consent to our use of cookies in accordance with our privacy policy unless you have disabled them.