Soaring energy bills caused by the Government's climate change scheme have been called the "straw that broke the camel's back" by company executives and corporate rescue doctors who are trying to save ailing firms.
New data from the corporate regulator reveals insolvencies have hit a record high over the past 12 months, led by widespread failures in manufacturing and construction, which accounted for almost one-fifth of collapses...
Experts say the carbon tax is adding to increasing cost burdens for many firms struggling to stay afloat...
Peter Macks, principal of Adelaide-based insolvency firm Macks Advisory, said the carbon tax was "quite debilitating" for a number of hotel operators who he said had been "struggling for a long time".n"It is very tough operating at a profit," Mr Macks said.
Todd Gammel, a partner with HLB Mann Judd, likened the carbon tax to pulling a leg out from underneath a chair. "For companies which have exposure to energy, and other factors which are affected by the carbon tax in a significant way, the carbon tax and the costs related to it are having a significant impact on the ability of these companies to continue," Mr Gammel said.
While the carbon tax adds around 10 per cent to the price of electricity for most families, the impact on many small businesses and energy-intensive firms can be significantly higher.
"There's no doubt the carbon tax is driving higher electricity prices for businesses across the state," said NSW Treasurer Mike Baird. "NSW Treasury analysis for this financial year shows that NSW electricity customers including small businesses and households will be hit with a bill worth an estimated $580 million due to higher power prices as a direct result of this disastrous tax."
Australian Chamber of Commerce and Industry chief economist Greg Evans said: "Rapidly escalating energy prices caused by the carbon tax and other green programs are taking their toll on many Australian businesses.
h/t Catallaxy Files