The carbon tax and your building business
The Australian Government's carbon tax started on July 1, 2012, and it will have far-reaching implications for businesses, consumers and the Australian economy, according to Master Builders, Queensland's peak body for housing and construction.
Master Builders' Director of Housing Policy, Paul Bidwell, says there is no doubt the building industry will be affected and for anyone responsible for building contracts there are some key issues to consider.
"The carbon tax will increase the cost of many goods and services including electricity and many building materials, so you will need to factor these additional costs into building jobs that will run past or start after July 1, 2012," says Paul.
"While the cost impact will vary depending on the materials used, the size of the building and the location, a number of economic consultants have modelled the price impact of the carbon tax on the cost of a new home. For example, The Allen Consulting Group has released a report that estimates that the carbon tax will add around $3821 to its model two-storey brick-veneer 200m2 house. However, this cost increase is just an estimate and the best way to assess the cost impact of the carbon tax on a business will be to speak to associated suppliers about their post-July 1 prices."
"Although it's quite likely that the price of bricks, concrete, glass and aluminium will rise as a result of the carbon tax, builders and trade contractors should never inform clients that they are putting their prices up to cover carbon tax, unless they are absolutely certain of the exact costs involved."
"For building contractors, ensuring you pass on the additional costs associated with a particular building job to a client simply makes good business sense. However, in the current situation this can be challenging task, particularly given many suppliers, manufacturers and distributors are not yet sure about how the carbon tax will affect their prices."
Master Builders has developed some dos and don'ts for building contractors when dealing with the carbon tax in the lead-up to its introduction on July 1, 2012.
Master Builders' members have access to professional advice. Master Builders has also developed information for builders and trade contractors when considering the impact of the carbon tax on contracts.
Narellan Pools has announced a partnership with North America's largest pool company, Latham...
Want to win over the most difficult customers? Join the Communications in Action workshop,...
Spinal cord injury recovery organisation The Next Step has opened a brand new wellness hub,...