Carbon tax repeal – how it affects your costs, prices and communications

Now that the carbon tax has been repealed, the equivalent
carbon tax (ECT) no longer applies to synthetic greenhouse
gases (SGGs) imported after 1 July 2014. The ACCC’s role
is to make sure that customers get the benefit of the repeal
as soon as possible.
Any business which supplies a regulated
good, including an SGG, is required to pass on
all cost savings relating to the supply of that
good directly or indirectly attributable to the
carbon tax repeal. Under the new carbon tax
price reduction obligation, if you do not
pass through all carbon tax costs savings you
are likely to be engaging in price exploitation,
which is against the law.
The ACCC is already monitoring prices in the
SGG sector to assess the general effect of the
carbon tax scheme and expects businesses
to be able to explain how their SGG prices are
determined and to provide historical information
on stock, purchase/import dates and prices.
Refrigeration contractors dealing in SGGs can
expect importers and wholesalers to pass on
all of their carbon tax repeal costs savings. At
a minimum, this should include savings from
the repeal of the ECT on imports, but can
also include savings from financing, security
and insurance costs. Talk to your suppliers to
understand what carbon costs and savings
were passed through to you.