A flyer sent out by Tony Abbott has potentially exposed small businesses to fines of up to $1 million each.
The Opposition Leader wrote to thousands of small business owners warning them of the impact of the carbon tax. The letter, from Mr Abbott and opposition small business spokesman Bruce Billson, is accompanied by a flyer that shop keepers - specifically butchers - have been encouraged to place in store windows.
The flyer states: “The federal government estimates that the carbon tax will increase the cost of energy by 10 per cent in its first year of operation. It will also increase the cost of our suppliers. Higher electricity prices mean it will cost us more to keep our meat refrigerated.
“We always strive to keep our prices at reasonable levels but because the carbon tax will make electricity more expensive, our prices will increase. We apologise for these price increases.”
In Mr Abbott’s letter he warns business owners that the carbon tax, which begins on July 1, will add to the operating costs of local butchers across Australia.
”Julia Gillard promised six days before the election ‘there will be no carbon tax under the government I lead’,” he writes.
”This broken promise will do great damage to small businesses like yours and drive up costs.”
But the Assistant Treasurer, David Bradbury, has warned that the Liberal leader has potentially exposed shop owners to fines of up to $1 million each.
Mr Bradbury hit out at Mr Abbott, saying he was improperly giving ”businesses the green light to jack up their prices” and warned that shop keepers who put up their prices without due justification were risking large fines from the ACCC of more than $1 million for each infraction.
He said the ACCC was keeping a careful watch on businesses who overcompensated on prices using the excuse of the carbon price.
”Mr Abbott is recklessly encouraging businesses to increase their prices and to put a sign in their windows - authorised by his small business spokesperson Bruce Billson - blaming the carbon price,” Mr Bradbury said.
”If businesses make false carbon price claims they run the risk of breaching the Competition and Consumer Act and could be exposed to a $1.1 million fine for misleading consumers.
”Mr Abbott is putting small businesses in the firing line with his reckless negativity.”
Treasury has estimated the average price rise on meat and seafood in a standard shopping basket of goods as around 10 cents a week.
Similarly, an analysis on a Sydney butcher shop with a revenue of $2.1 million per year has shown that the businesses’ electricity bill of around $22, 000 per year - representing about 1 per cent of turnover - would rise by around 0.1 per cent of turnover.
The analysis found to pass on this cost increase, the butcher would have to increase the price of a $11 packet of mince meat by approximately one cent.
