Which Australian companies are the biggest winners from the GST freeze?
Posted July 11, 2018 06:08:56 It’s time to look at which Australian companies have benefited from the carbon price freeze and the resulting price rises.
The latest figures from the Australian Taxation Office (ATO) show a whopping 2.3 million people were hit by the carbon tax freeze, as the tax hit an average of $7,000 per household.
The figure is the highest since the tax was introduced in 2018.
That’s a rise of more than $400 per household, or about 7 per cent.
There’s also a small increase in the number of people who paid no tax at all.
The ATO also released new figures showing a drop in the percentage of Australians who paid a tax under the carbon excise tax, which had previously been more than 80 per cent of people.
The government is hoping that the carbon levy will help cut the country’s greenhouse gas emissions.
While the carbon freeze has brought in more than its share of revenue, it’s also resulted in a significant drop in income for many Australian businesses.
“This has been a huge hit to businesses across the country and they’re feeling the effects,” said ATO director-general John Rau.
“While it’s not exactly the same, the carbon shock has been pretty substantial.”
The Australian Tax Office’s latest data shows that the majority of Australians pay income tax, but some businesses are struggling to cope.
“Some businesses have seen a reduction in their revenues, some have had to cut staff, and some have seen some employees lose their jobs,” Mr Rau said.
The number of Australians in receipt of a tax cut or benefit under the Carbon Tax Freeze is still increasing, with about 1.6 million people receiving a reduction from the tax this year.
The biggest beneficiaries of the tax freeze are those that use their company cars as their main means of transport.
The tax hit most of them the most, with the average household being hit by $1,800, or 4 per cent, of its income.
However, a small number of households saw their carbon taxes rise by $250.
ATO data shows a similar picture for the number receiving the GST rebate.
The average household received a reduction of $1.3, or 5 per cent – about 4 per to 6 per cent less than the average GST recipient.
Businesses that are benefiting from the new tax are also making more money from carbon tax rebates.
“The rebate on carbon is being passed on to companies through the carbon taxes,” Mr Robson said.
The tax freeze is not without its problems, however. “
In the short term, that is offset by a decrease in the amount of carbon tax that they are able, in many cases, to sell to the government, which is what is likely to be the case over the coming years.”
The tax freeze is not without its problems, however.
Many businesses have been forced to close because of the increased CO2 emissions.
“We have a large number of businesses that are facing some kind of uncertainty about the viability of their business,” Mr Ross said.
That has caused some businesses to delay or cancel plans for expansion.
Some businesses are also worried about the impact of the carbon rebate, which may mean some employees will lose their job, and other employees will need to take jobs elsewhere.
“Employees will be concerned that the rebate will be reduced by about 20 per cent to 40 per cent,” Mr Daley said.
Some business owners have been asking themselves if they should pay more tax.
The carbon tax rebate is a rebate to businesses on their electricity and gas bills.
The new carbon tax means businesses are now able to sell their carbon credits for a lower price.
The main reason many business owners are making more from the rebate is that they don’t pay their employees the GST on their salaries.
Business owners are also paying the extra cost of buying the carbon credits that they get from the government.
If they were to get rid of the Carbon Allowance for Business, they would also lose their tax rebate.