The carbon tax in Australia is no more with the Federal Government passing the Clean Energy Legislation (Carbon Tax Repeal) Bill 2014. While the central purpose of this legislation was to remove the tax, it also introduced new powers to the Australian Competition and Consumer Commission (“ACCC”), which many business owners are not aware of.
The New Powers of the ACCC:
The ACCC has now been given the power to monitor businesses that supply regulated goods to ensure that any savings they receive as a direct result of the tax’s repeal are passed onto consumers.
Businesses who supply regulated goods will also be prohibited from making false and misleading statements in relation to the effect the repeal of the tax will have on the price of their goods and services.
What are Regulated Goods?
Regulated goods include any business that provides the supply of electricity, natural gas, synthetic greenhouse gases (refrigerant gases), or synthetic greenhouse gas equipment, such as refrigerators and air-conditioners. It is these businesses that will be monitored by the ACCC and they are required to ensure that all costs savings they receive are passed directly onto consumers.
New Penalties that the ACCC May Impose:
As part of the Bill passed by the Government and its new role of monitoring the sale of regulated goods, the ACCC now has the power to impose significant penalties upon businesses found not to be passing on the savings they now receive as a result of the tax’s repeal.
The ACCC can impose a penalty of up to:
- $1.1 million per contravention by a corporation; and
- $220,000 per contravention by an individual.
They also have to power to impose an injunction, declaration, or compensation order in favour of consumers affected by the actions of the business.
Tips for Business Owners:
If you’re business deals with regulated goods, or with another business as a supplier to you of regulated goods then it is important you review current pricing policies to ensure compliance with the requirements of the repeal of the carbon tax.
If this is your business then it is important that you:
- Review any material from your supplier’s to ensure there are no misrepresentations on the carbon tax repeal included;
- Review the pricing of your goods and the goods from your suppliers to ensure that the cost saving is accurately reflected in these;
- Review current contracts with suppliers to ensure compliance and negotiate with suppliers to alter the terms to reflect any outdated pricing contained within.