Ferrier Hodgson partner slams recent suggestions the financial impact of the carbon tax is being “overstated”
Ruza Zivkusic-Aftasi | May 28, 2012
Ferrier Hodgson partner Brendan Richards has slammed recent suggestions that the financial impact of the carbon tax is being “overstated”, saying the tax is “flawed” and will greatly impact transport operators.
Speaking at today’s Victorian Transport Association (VTA) State Conference, Richards believes comments made by Deloitte Access Economics economist Chris Richardson at the Australian Trucking Convention do not apply to the transport industry.
Richardson believes the financial impact of the tax, which will begin on July 1, is being overstated.
“There have been suggestions recently that it’s not as gloomy as it might seem, but I don’t think people that make those observations understand what it’s like being an operator,” Richards says.
Meanwhile, Matthews Steer partner Adrian Misiano is calling on businesses to have a plan in place to ensure the long-term efficiency of their business, saying too many businesses are structured for tax and not asset protection.
“You need to work smarter and not harder and target your customers. Who are the customers that are holding you back?” Misiano says.
“Too many people grow their sales level but are performing worse than before. You need to reassess risk levels, economic conditions and effect on final result.”
Richards says the main mistake most operators make is thinking wealth comes from the number of trucks they have.
“The more tucks you have on your balance sheet the bigger problem you have. It is not an asset of investment quality; it is how you structure financially your business,” he says.
