Carbon tax: Richards urges trucking operators to pass on extra costs

Brendan Richards, Ferrier Hodgson’s transport and logistics specialist, has urged trucking operators to pass on any carbon-related cost increases to their customers.

“Road transport operators have been lulled into a false sense of security by the deferral of fuel tax credit reductions – many of them regards the Carbon Tax as a 1 July, 2012 issue,” Richards warned.

Richards repeated the Australian Trucking Association’s recent call for road transport operators to immediately review their costs. The ATA’s CEO, Stuart St Clair, had earlier advised: “Trucking businesses should review their costs and make a judgement about whether they are likely to increase as a result of the carbon tax.”

Richards now expressed concern that many operators, “won’t see it coming until the bills start rolling in – with bigger electricity bills in three months time, or trade supplier invoices at month end.”

While the Carbon Tax won’t be directly applied to the road transport industry (by way of decreased fuel tax credits) until mid 2014, the tax’s implementation in other industries on July 1 this year will have an effect on all businesses’ costs.

Richards urged trucking operators to identify carbon tax related cost increases and to pass them on to customers.  He also warned that the Australian Competition and Consumer Commission (ACCC) will be on the alert for any “gouging”.

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