Will the Carbon Tax Crush Small Businesses?

The colloquially known ‘Carbon Tax’ has been a hot debate topic of late, with mixed opinions and reviews running rife, but how will this Pigovian Tax really affect small businesses, arguably the backbone of Australian trade? David Doughney, small business owner and operator for over 20 years, voices his grave concerns of the knock on effect of the Gillard Governments controversial policy. Mr Doughney owns AB Panels, a respected and popular ‘panel beater’ Auto Repair business, and is gravely concerned that this new tax will destroy the business he has run for over two decades.

“I really think the carbon tax is a misguided scheme, because the reduction in carbon will not have much effect when compared to global output, and it will instead put a real strain on an economy that has recently weathered a global financial crisis.”

Mr Doughney alludes to much touted fact as of late, that Australia’s carbon output is very small compared to larger economies, as of 2009 Australia produced 417.68 million tonnes of carbon, whilst the top ranking China produced 7710.5 million tonnes, and the US produced more than 5000 million tonnes more than Australia, which in fact ranks number 15 on the scale of carbon producers. These figures have some, like David, wondering, wether Australia sacrifice is too great, and disproportionate to the actual amount of carbon produced.

“All my materials are set to rise as much as 30%, it looks like the tax is going to add a huge cost to everything; mining, manufacturing, fuel, electricity, gas- even funerals are going to go up in cost, which is the final joke really isn’t it?”

The tax, which is aimed at the top 500 polluters, charging $23 per tonne, is a leader in the field of worldwide environmentalism, with other countries around the world slow on their own cohesive implementation, number 1 ranking China plans to introduce a tax in 2015, and number 2 ranking US yet to have a nationwide carbon tax, however some individual states have implemented policies. With carbon pricing beginning just over a week ago on July 1st, it remains yet to be seen, wether the concerns of Australians like David, will have purchase in reality.


For more information on the numbers and figures concerning the Carbon tax, go here;


and here



About Alexandra McDonald

Online Portfolio of Alexandra McDonald. Current Postgraduate Journalism student. Writing about the news media and politic seems to be my emerging forte but I love writing and researching pretty much anything and everything! Catch me on http://www.activemotion.com.au/shamrock/
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