Understand the impacts of the carbon tax on your business and personal income tax.

1. Carbon Tax – What does it
mean for you?
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2. Disclaimer
The information contained in this presentation is for guidance only and
should not be relied upon without obtaining professional advice having
regard to your direct circumstances. No responsibility for loss occasioned
directly or indirectly to any person acting or refraining from acting wholly or
partially upon or as a result of the material in this presentation or for any
error in or omission from this presentation can be accepted by the publisher
or any author, editor, contributor or consultant of any company referred to
herein.

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 $ 93
BM Alliance 2.5 $ 57
Delta Energy 20.5 $ 470
Macquarie Generation 23.4 $ 538
Origin Energy 1.9 $ 43
Qantas 4.0 $ 90
Rio Tinto 7.7 $ 177
Virgin 1.7 $ 38
Woodside 8.4 $ 193
Xstrata Holdings 2.7 $ 62
Source of Emissions Data: National Greenhouse & Energy Report 2009-2010

6. Carbon Tax
Impacts 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 Tax
Impacts on individuals

10. Personal income tax
First threshold currently 15% at $6k
• Increase to 19% at $18k next year
• Increase to 19% at $19k in 2015-16
Second 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. Recommendations
Carbon 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

14. SAVE TAX, GROW BUSINESS, GENERATE
CASH FLOW, PLAN SUCCESSION & PROTECT
ASSETS
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