Consumers, businesses should be big winners

TASMANIAN business groups have welcomed the axing of the carbon tax, naming lower power and freight prices as the main benefit for the state.

Tasmanian Small Business Council executive officer Robert Mallett said consumers and business owners would win from the scrapping of the tax.

"What it will do for small business people is it will enable them to claw back some of the margin that they weren't able to charge out earlier on," Mr Mallett said.

Mr Mallett said there were a lot of Tasmanian businesses that "absorbed" price increases experienced after the introduction of the tax.

"Our marketplace in Tasmania is extremely competitive, and it's hard to put your price up," he said.

Mr Mallett cited refrigeration as one part of small business that was hit hard by the carbon tax.

"Some of their costs went right through the roof, so I think there will be some reduction in the cost of goods where refrigeration is used," he said.

"We need small business people to actually make money so that they can spend that money back into the community."

Mr Mallett said consumers should expect to see small decreases, but not savings of hundreds of dollars.

Tasmanian Chamber of Commerce and Industry chief executive Michael Bailey said any savings for businesses was good.

"There's no doubt that businesses in Tasmania will see a reduction in some of their costs, not just in energy but also in freight," Mr Bailey said.

"The bigger picture is the impact on businesses themselves, and needing to make sure they are passing on any reductions," he said.

"What we aren't quite sure about yet is the impact of the Palmer [United Party] amendments on smaller businesses."

The PUP amendments ensure businesses pass on savings from the removal of the tax.

Bell Bay Aluminium, which used 25 per cent of the state electricity, welcomed the scrapping of the tax.

"We are pleased the carbon tax repeal bills have passed both houses of Federal Parliament quickly and that the resolution of this issue has not dragged on," a spokeswoman said.


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