THE effect on local business of the newly adopted carbon tax will be keenly observed by the Mid North Coast Business Chamber.
The controversial price on carbon took effect on Sunday, with about 300 organisations across the country now required to pay $23 for every tonne of emissions they release into the atmosphere.
Speculation of flow-on charges from the tax has been alive among small business owners for months.
Many are fearful they will have no choice but to increase the price of goods and services.
Consumers also have been unsure about the effect of the tax.
Mid North Coast NSW Business Chamber regional manager Kellon Beard said the chamber would help business deal with the change.
“We’ll be looking to assist businesses to find their way through and give them access to all the resources they need,” Mr Beard said.
Electricity will increase in price when coal-fired power generators pay the tax, but the cost of other goods, such as groceries, may also increase, he said.
“Electricity is the first, but component parts will go up and manufactured items which use steel, because steel uses a lot of electricity to produce,” he said.
“There will be other things as time goes on, but the increased cost won’t be passed on for a while, particularly if they are well stocked already,” Mr Beard said
One impact of the carbon tax already is being felt. Port Macquarie-Hastings Council is to pay $23 per tonne of emissions given off from its landfill sites from last Sunday.
To cope with the tax and an increase in the State Government’s waste levy, Council has increased tip fees from July 1 from $180 to $213 a tonne or $12 to $16 for a small trailer load.