Understand the impacts of the carbon tax on your business and personal income tax.
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1. Carbon Tax What does it mean for you?
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2. DisclaimerThe information contained in this presentation is
for guidance only andshould not be relied upon without obtaining
professional advice havingregard to your direct circumstances. No
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person acting or refraining from acting wholly orpartially upon or
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3. Carbon Tax: What will change? Imposition of price on carbon
Fuel tax changes Personal tax Welfare
increases__________________________________________ Other areas
include: Industry assistance, Carbon farming and Incentives for
renewables
4. What is carbon pricing Sites emitting 25,000 tonnes of
carbon dioxide per year estimated at 500 sites Will pay $23/tonne
(indexed for 3 years) 2015 price will be set by government auction
(with a price floor) Sites will need to purchase carbon permits
from Government for each tonne of carbon emitted Trade exposed
industries (steel) will certain receive free carbon credits
5. Big organisations COMPANY CO2 EMISSIONS POTENTIAL CARBON
(million tonnes) TAX BILL ($ million)Anglo American 4 $ 93BM
Alliance 2.5 $ 57Delta Energy 20.5 $ 470Macquarie Generation 23.4 $
538Origin Energy 1.9 $ 43Qantas 4.0 $ 90Rio Tinto 7.7 $ 177Virgin
1.7 $ 38Woodside 8.4 $ 193Xstrata Holdings 2.7 $ 62Source of
Emissions Data: National Greenhouse & Energy Report
2009-2010
6. Carbon TaxImpacts on businesses
7. Business fuel tax changes Agriculture & fisheries are
exempt Currently, businesses can claim fuel tax credits for heavy
transport and off-road use Credit will be reduced from 2014/15 for
heavy transport by amount equivalent to carbon price Credit will be
reduced for off-road use from 2012-13 for mining, marine transport,
construction, manufacturing, wholesale/retail, property management
& landscaping
8. Aviation fuel Aviation fuel for domestic flights will be
subject to an increase equivalent to the $23/tonne (Maybe 5c per
litre) would be $115m for Qantas Airlines will be able to opt-in to
the carbon pricing scheme instead of paying the additional fuel tax
after a year Likely that Qantas and Virgin will opt-in
9. Carbon TaxImpacts on individuals
10. Personal income taxFirst threshold currently 15% at $6k
Increase to 19% at $18k next year Increase to 19% at $19k in
2015-16Second threshold currently 30% at $37k Increase to 32.5%
next year Increase to 33% in 2015-16
11. Low income tax offset Increases effective tax free
threshold Will be reduced meaning the effective tax free thresholds
are: Now $16k Next year $20k 2015-16 $21k
12. Increases in Welfare Payments Age pension goes up 1.7%
Advance payments Family Tax Benefits go up 1.7% Self funded
retirees might get $510 per couple in seniors supplement (if on
similar income to age pensioner)
13. RecommendationsCarbon tax Factor increases in costs Review
products and services pricing Reduce energy consumption Budget for
reduced fuel tax credits Be careful with statements about carbon
tax and your prices - ACCC
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