Carbon Price Presents Challenges For Logistics Industry

by David Sexton - last modified Jun 04, 2012 12:44 PM

Mr Hudson, a lawyer from Hunt and Hunt in Melbourne spoke with Lloyd’s List Australia about carbon pricing which takes effect from July 1.

He said effective accounting would be essential as was how the price was “passed on” down the supply chain.

“Those people who are going to be levied with the tax in the first place are making sure they collect it and it’s accounted for properly to government,” he said.

“I think the reality is, hopefully, the majority of those were forewarned and were aware of their obligation and would be putting appropriate accounting practices into place.”

Mr Hudson said the carbon price would only apply to the domestic parts of shipping, aviation and road transport.

“We don’t levy it on international services and we don’t levy it on environmentally-friendly fuels.”

Under international accounting standards, bio-fuels are treated as carbon neutral so ethanol, bio-diesel and renewable-diesel won’t incur a fuel tax credit reduction.

How the price was “passed on” could be an issue.

“Shipping lines, air cargo, road transport and how they pass that on and if they passed that on by way of an additional charge on their invoice,” he said.

“That raises the whole issue of people who receive those (charges) verifying that it’s an accurate additional charge and then being able to pass that on and how they pass it on.”

Mr Hudson said it was essential that businesses which raised prices to cover the cost of the carbon tax did so accurately and were accurate in what they advertised as a carbon tax charge on any invoice.

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