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Carbon Tax Impact on Pergolas and Verandahs

Carbon Tax Impact on Pergolas and Verandahs

We have been asked a number of time recently on what impact the new carbon tax will have in the future on the general Verandah and Pergola industry.

Firstly I like many remain confused as to the benefits and cost's we are to expect. That said as our product base uses electricity and transport and many manufacturers aren't in fact super rich corporates, they will not receive any direct benefits to offset their costs.

Our manufacturers like our competitors feel their costs will rise beyond their direct control. To what extent they remain unsure.

What we do know

The Tax

  • From 1 July 2012, the fixed carbon price will start at $23 per tonne of carbon dioxide equivalent (CO2-e) for three years (increasing at 2.5 per cent in real terms, i.e. adjusted for inflation, per year) before moving to an emissions trading scheme in 2015.
  • From 1 July 2015 onwards, the price will be set by the market and the number of permits issued by the Government each year will be capped.

 Industry Comment

HIA - press release

The decision to proceed with the Government’s carbon tax arrangements ignores its impact on the cost of new housing, according to the Housing Industry Association, the voice of the residential building industry.

"The carbon tax will permeate through building material manufacture, production and fabrication phases and supply chains, and eventually be passed on to new home buyers," said HIA’s Chief Executive – Association, Graham Wolfe.

Master Builders - Carbon tax to hamstring building

Source: Australian Broker News

Master Builders has called for a forum to assess the impact of the carbon tax on home building after Prime Minister Julia Gillard introduced the legislation to Parliament yesterday.

Master Builders CEO Wilhelm Harnisch has argued for the establishment of a panel of government and industry stakeholders to examine the impact the proposed tax will have on the building and construction industry. Harnisch has claimed building will take a hit under the tax plan.

"The proposed carbon tax will have a substantial adverse impact on the building and construction sector. According to the Treasury's own forecasts, the carbon tax will reduce output in the construction sector by some 5.6% by 2050, much more than the 4.3% predicted for mining and the 2.8% expected for manufacturing," Harnisch claimed.

Harnisch suggested that the hypothetical panel undertake detailed modelling and forecasting of the impact of the tax on housing affordability, commercial building and SMEs.

What we can say

Totally Outdoors is not condoning use of Carbon Tax scare tactic's to drive sales. We like our clients hope that manufacturers and transport industries carbon tax impacts remain below CPI. We continue to provide quotations based on clients budgets and outcomes. We do hope the real household costs do not rise beyond government estimates and benefits are felt by the people who elect governments., after all we are all in the same boat. We note government confidence of low impact's in this area are based on corporate companies passing government benefits onto customers. History tells us this is a fantasy. This area remains the key component that will either maintain current overall sluggish economy or grind a continual downturn in the non-mining sectors. What we would hope is government had a vision on reducing tax not adding new ones.

What we can do

Totally Outdoors maintains a strong concentration on quality and efficiency. Our focus will continue to ensure our clients get an offer that reflect's providing quality designs, products and installations goals.

Our Location:

Factory 1 26-28 Abbott Road Hallam  - come and see our undercover display centre

Contact Us

Telephone: (BH) 9796 6899

Email Contact: Click

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