carbon pricing tax breaks the impact on your business

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Carbon Pricing Tax Breaks The impact on your business. Tim Bodey Principal WHK Ballarat. Overview of today’s session. “Clean Energy Future” package Reporting requirements (NGER) Income Tax breaks (individuals and businesses) Families and Pension benefits - PowerPoint PPT Presentation

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  • Carbon PricingTax BreaksThe impact on your businessTim Bodey Principal WHK Ballarat

  • Overview of todays sessionClean Energy Future packageReporting requirements(NGER)Income Tax breaks(individuals and businesses)Families and Pension benefitsSmall/Medium businesses (SMEs) impactsWhat can we do now and into the future?

  • Clean Energy Future packageApplies from 1 July 2012Starts out as a tax ($23p/T and indexed) for top 500 emittersMoves to Emissions Trading Scheme (1 July 2015)

  • National Greenhouse and Energy Reporting Act 2007Three year reporting program to determine to top 500 (or so) emittersThird and fourth tier thresholds apply to 30 June 2011 financial yearFacility: 25,000kT greenhouse gas or 100Tj energyCorporate Group: 50,000kT greenhouse gas or 200Tj energySome SMEs will have reporting requirements for the first time (register 31 August and report 31 October)Civil penalties for failing to register and possible personally liable for CEOs

  • Reviewing for NGERNow is the timeGood data gathering proceduresRecord keeping processesSome Outcomes:Cost savings identifiedStreamlining of operationsBetter position to identify other opportunities

    www.climatechange.gov.au/reporting or 1800 018 831

  • The Tax Breaks (Individuals)Offsetting the pain of rising costsChanges to individual income tax rates, thresholds and rebatesLow Income Earner Rebate reduces from $1,500 to $445

    IncomeTax Rate (1/7/12)Tax Rate 1/7/15Up to $18,2000%%0 ( to $19,400)$18,201 - $37,00019%19%$37,201 - $80,00032.5%33%$80,001 - $180,00037%37%$180,000+45%45%

  • Impact on the family homeEstimates suggest that approximately three million household will be adversely affected by the Carbon Taxwww.cleanenergyfuture.gov.au/helping-households/household-assistance-estimator/Puts the impact in $ and where some assistance from government is available

  • Pensions, allowances and family payments

    Who?SinglesCouplesPensioners*Up to $338paUp to $510pa*Income threshold$50,000$80,000

    FamiliesPart A - $110 per childPart B - $69 per childJobseekers1.7% increaseSingle $218pfCouple $390pfStudents1.7% increaseSingle $177pf

  • Small business (less than $2M turnover) - Asset write off from $5K to $6.5KEligible industries - Energy efficient capital equipment grants (up to $25K); tender processCost of acquiring permits tax deductibleIssue of permits not subject to GST, but trading of carbon under ETS from 1 July 2015 will beMonitoring registration requirements(possible increased administration)Tax breaks and other considerations for SMEs

  • Impacts on a small medium sized businessIncreased cost of energy, water and waste disposalIncreased cost of food and beverageIncreased cost of cleaning products, packagingIncreased customer awarenessChange of product mix to meet consumer demand changesInability to pass on the price increases (maker/taker)Increased freight and cartage costs(deferral of Carbon Tax on fuel until 1 July 2014)Costs to covert to energy efficient products(mostly $3 spend for $1 recovery)

  • Business Energy AssessmentsInitial overview of your current usageIdentify energy savings in your businessGovernment initiativeConcludes 31 December 2011Cost: $275 inc GST depending on size of business (turnover and staff numbers)Some businesses have identified up to 30% in savings in power costs

  • What can you do now?Review internal costings and energy usageAppoint a green team staff really get involvedSeek out government funding opportunities:AusIndustryRegional Development Victoriawww.grantslink.gov.auClean Technology Programs ($800M/$2Bn):(www.innovation.gov.au/Industry/CleanEnergyFuture/Pages/CleanTechnologyProgram.aspx)

  • Other Government Grants of interestEnterprise Connect (www.enterpriseconnect.gov.au)Business review / Advisor servicesGrow your business (www.business.vic.gov.au)Strategic Review / Business Development Plan / MentoringR&D Tax Incentive (new rules apply 1 July 2011)

    www.whk.com.au

    21 Armstrong Street NorthBallarat 3350

    timothy.bodey@whk.com.auThank you

    Rescind the legislation if Coalition is elected prior to 1 July 2012Indexation goes $23 1/7/12 to $24.15 1/7/13 and $25.40 1/7/14The price of Carbon under ETS in NZ has dropped time will tell.My co-presenter John will review the Carbon Tax further25,000kT equates to approx 2.5M Litres of Fuel or 25,000 megawatt hours of electricity (or a combination of the two)Current rates $6K, 15% to $37K, 30% to $80KLow Income Rebate change will impact on amount of money allowed to be distributed to dependent children through Family TrustsWith the reduction in low income rebate, the effectively tax free threshold has increased from $16K to $20,542No Flood Levy from 1 July 2012 also.

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