Australian Government Defends Price on Carbon

A media conference with the Greens, after the government's announcement of the Carbon Tax plan, at Parliament House on July 10, 2011, in Canberra. (Stefan Postles/Getty Images)

 

The Australian government has warned small businesses they could be liable for fines up to $1.1 million if they display posters distributed by the opposition that attack the incoming price on carbon.

Days before the elected Labor government’s tax on carbon emissions takes effect on July 1, Coalition members of parliament have distributed fliers to small businesses including butchers, bakeries and dry cleaners warning it will make business more costly.

Julia Gillard’s Labor government is preparing to launch its own campaign starting this weekend aimed at allaying community fears about the impact of the tax.

The carbon pricing scheme will make polluters pay for each tonne of their carbon emissions, at a starting price of $23. This will gradually increase until 2015 when a trading scheme will take over allowing the market to determine the cost.

But the opposing Coalition has heightened its negative campaign.

Opposition leader Tony Abbott has warned communities would be “wiped off the map” because of the scheme, the finances of charities would be hit, and jobs would be lost. Some Coalition MPs blamed last week’s newspaper redundancies on the incoming carbon price.

Mr Abbott has previously warned businesses not to buy carbon emissions permits, because he would be repealing the carbon price if elected.

Julia Gillard’s Labor government has warned businesses not to buy into the negative campaign, with the Australian

Competition and Consumer Commission watching closely for misleading claims about the impact of the tax. Businesses that name the tax as the reason for price hikes that are not justified could face fines.

“If you do mislead your customers, then you could face fines of up to $1.1 million,” Assistant Treasurer David Bradbury told parliament.

The government estimates households will on average see cost increases of $9.90 per week, but receive an average $10.10 in household assistance payments, meaning the tax will have negligible impact for most people.

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