Measuring the costs of implementing the former carbon tax for Australian liable entities

The implementation of the carbon tax (formally referred to as carbon pricing scheme) on 1July2012 was part of Australia :S commitment to stabilise greenhouse emissions in an effort to mitigate climate change. This study examines the implementation compliance costs of the Australian carbon tax for liable entities, for the period up until 30 June 2012. The study assesses the magnitude of the implementation costs of a new tax, thus contributing to the compliance costs literature. A survey of 50 /iable entities undertaken in September 2012 and telephone interviews with 10 of these entities conducted in April 2013 estimated the start-up compliance costs at AUD 1, 795, 762 per liable entity. Although the majority of respondents (60 per cent) supported the Government :S plan for a clean energy future, most of these enterprises (65 per cent) found the carbon fax complex. Despite the high gross carbon tax start-up compliance costs, fiable entities (56 per cent) a/so identified potential benefits of the implementation of the carbon tax. This investigation has important political, economic and environmental benefits for countries seeking to introduce a carbon tax or similar taxes.