The Australian Competition and Consumer Commission is being urged to provide guidance to businesses and consumers on how much prices will rise under the carbon tax.
CPA Australia says the competition regulator should follow the lead set by the introduction of the goods and services tax last decade, when price rises were revealed months before the tax was introduced.
“Treasury seems able to predict the tax’s impact on inflation so hopefully the ACCC will be able to do that also, for SMEs in particular,” CPA Australia business policy adviser Gavan Ord says.
“If you’re going to impose penalties for price gouging then tell us what is not price gouging.”
Robert Jeremenko, senior tax counsel at the Tax Institute, said when the GST was brought in the ACCC had a “very powerful role” in ensuring businesses knew what was appropriate and in reassuring consumers that there was an alert watchdog keeping an eye on price rises.
“There’s probably a bit of sense in having an ACCC that’s appropriately funded to make sure that nobody takes advantage,” Jeremenko says.
“I can see the benefit of it.”
Treasury has tipped the carbon tax to push up the cost of living in 2012-13 by 0.7% versus 2.5% from the introduction of the GST.
It was announced yesterday that the ACCC would be given new powers and $12.8 million over four years to investigate claims of price gouging, with penalties for an individual breach reaching up to $1.1 million.
The ACCC this morning said companies making claims about price rises under the tax would need to substantiate them.
A spokesman declined to comment on whether the ACCC would release indicative pricing, referring questions to the Government.
Wayne Swan’s office was contacted for comment but did not respond prior to publication.
