The Australian Competition and Consumer Commission has revealed what business can and cannot do in the lead up to the implementation of the carbon tax.
The consumer watchdog has updated its Carbon price claims – Guide for Business publication and the Deputy Chair of the ACCC, Dr Michael Schaper, warns “businesses are coming to this without fully knowing how carbon tax works and what they can and can’t say”.
SmartCompany reported last week the ACCC has already examined over 100 businesses in relation to claims of carbon tax price hikes, so it is important to start thinking about these issues before the carbon tax is implemented on July 1.
Here are the ACCC’s do’s and don’ts on the carbon tax:
Carbon Tax – Do
1. Be truthful and reasonable
“If a business claims that a price rise is linked to the carbon price, the claim must be truthful and have a reasonable basis,” says Schaper.
2. Get invoices in order
Before making a claim about the impact of carbon prices, business should consider invoices showing the impact of the carbon price on supply chain or business input costs; invoices or notices showing the impact of the carbon price on the cost of services such as gas and electricity; and invoices and other information showing the impact on products or services before and after a price change.
3. Consider other information sources
Before making any claims, businesses should also consider calculations from an appropriate business calculator that considers increased costs relevant to a particular business, information from professional advisers or consultants such as accountants and information from industry associations and the government.
“Businesses should be aware that the ACCC can ask for information to support claims about the carbon price,” says Schaper.