The Ready Response Network allows the Small Business Development Corporation (SBDC) to consult small business owners and managers via regular online questionnaires, on topical issues of importance.

While this is not a formal survey process, the results from these polls act as an effective litmus test of the sentiment of the small business sector and enables the SBDC to "keep a finger on the pulse" regarding current and emerging issues.

1. Carbon Tax Opinion Poll 2012
2. Extended Retail Trading Hours
3. Business Expectations Opinion Poll 2012
4. Dealing with Major Unexpected Events
5. Small Business Expectations 2011
6. Dispute Resolution – December 2010
7. Social Media for Business
8. Federal Government's Paid Parental Leave Scheme
9. Increasing Operating Expenses
10. Small Business Issues and Concerns
11. Small Business Expectations for 2010
12. How to join the Ready Response Network and participate in our polls

Carbon Tax Opinion Poll 2012

During May 2012, the SBDC's Ready Response Network obtained small business opinions about their preparedness for the introduction of the carbon tax on 1 July 2012.

A total of 62 people responded to the survey, with almost half (26) of all respondents indicating that they are not prepared for the introduction of the carbon tax. Only 13 respondents indicated that they are prepared for the tax and any flow on effects to their business. The remaining 23 respondents are unsure of their preparedness.

When asked if the carbon tax would have a positive or negative impact on their business, 55% stated that they believed it would have a negative impact, 10% believed that their business would be positively impacted, 19% believed that there would be little or no impact and 16% were not sure how their business would be impacted.

Of concern is that of the 34 respondents who indicated that they believed their business would be negatively impacted by the carbon tax, only 5 respondents indicated that their business was prepared for its introduction.

Although the carbon tax is targeted at the top 500 polluters in Australia, small businesses are likely to be impacted indirectly through their dealings with bigger businesses (e.g. higher costs for goods purchasing and higher input costs such as electricity prices) or indeed by their customers placing pressure on them to disclose their carbon footprint or "green credentials". In line with this, respondents were asked to indicate if their business was prepared for the possibility that from 1 July 2012 their customers and suppliers may require that their business reports on carbon emission levels and/or how their business is reducing their carbon footprint. An overwhelming 68% of respondents indicated that they were not prepared for this possibility. Only 18% indicated that their business was prepared for this and 15% indicated they were not sure if their business was prepared.

As the carbon tax is a Federal Government initiative, the SBDC was interested in hearing whether small business operators had been provided with sufficient practical information to help them understand the potential impacts of the tax on their business.

Overwhelmingly, 85.5% of respondents indicated that not enough practical information had been made available by the Federal Government, with only 6.5% of respondents indicating that there was enough information available. The remaining 8% of respondents were unsure.

Following on from this, respondents were also asked if their business needed assistance in understanding or preparing for the carbon tax. More than half of respondents (56%) indicated that they were unsure if they needed assistance, whilst 19% indicated they needed assistance. Only one in four respondents indicated that they did not need any assistance in understanding or preparing for the tax

Finally, respondents were asked for their general views on the impact of the carbon tax on their business. A selection of comments is provided below:

• "A necessary government initiative. Being blown out of all proportion by the media..."
• "About time, it's time we realised we're exploiting the planet and have to stop doing this!"
• "The carbon tax is necessary as we need to reduce carbon emissions so future generations have a healthy planet. If I have to make certain changes I will as it's for a healthier future. We need to opt for greener alternatives and I think only the really big corporations who have a big carbon foot print will be affected. It has to be brought in at some stage so no time like the present."
• "We are looking at the possibility of introducing a carbon offset program into the business. We were planning to do this whether or not the carbon tax is to be introduced. I am unsure of how my business will be affected indirectly and which one of my clients will be affected directly or indirectly too. I believe it is necessary, though I do not understand how to account for it within my budget."
• "This carbon tax is another tax and will adversely affect all business, particularly SMEs across Australia as they struggle to remain competitive in a world market, just another cost to pass on to the consumer, who will likely go on-line and we lose another sale to an overseas supplier."
• "The impact will be negative and many consultants will make millions trading in a gas of no consequence. It would be preferable to require polluters to fix the source or vehicles to be taxed on miles travelled or lack of service history."
• "Poor strategy, poor consultation of small business, poor level of practical info being advertised by the govt, poor execution."
• "I believe the carbon tax is the wrong approach - I think they could have encouraged less carbon emissions and a more sustainable society by giving exemptions from existing taxes for sustainable goods and services. The enterprise I am establishing reduces transport so should benefit from any carbon initiative."
• "As we are a retail outlet we expect that we may have supplier price rises that will have to be passed on to our customers."
• "I have not seen any attempt by the Federal Government to educate small business by either pamphlets, advertising, information sessions - nothing. Have I had my head buried in the sand?"
• "As far as I can see the only impact will be higher running costs with no tax breaks or incentives to small business. This will cost jobs."

To find out more about the Network

If you would like to know more about the Ready Response Network, please contact:

Policy, Planning and Stakeholder Relations
Small Business Development Corporation
Email readyresponse@smallbusiness.wa.gov.au
Telephone 131 BIZ (131 249)

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