Will Skip Bin Prices be impacted by Carbon Tax
Even though we are less than 2-months away from the introduction of the Carbon Tax there seems to be little or no information about the price of waste disposal it likely to increase and effect the price of skip bins. This should be little or no surprise because even though the state government levies increased are based on a well understood formula these do not get communicated to most waste and skip bin business until after the 1st of July, even though the infromation has been available for months beforehand.
The carbon price will be fixed for the first 3 years, starting at $23 per tonne of carbon (CO2) (generated or emitted). After the initial 3-years the carbon tax will be replaced by an ETS (Emmissions Trading System) that will determined the price of carbon emmissions by the market. The Carbon Tax is being imposed on only the largest 250 to 300 carbon emmitters although the tax is likley to be passed on in the form of increased prices (including higher skip bin prices). Given the disposals industries (the land fill operators) history of giving advance notice of price increases on tipping due to the known increases in state landfill levies it seems unlikely that the Skip bin industry is likely notified of their increased priced until the first or second week of July 2012.
So until the the beginning of July it is unlikely that anyone will know what the real impact of the carbon tax will be on the price of skip bins will be. The only things we do know is that the waste disposal companies (or landfill owners) are telling everyone who will listen that prices will go up not only as a result of the carbon tax, the state government waste levies but also the removal of the disel fuel rebate, and this is likely to significantly increase the price of skip bin services. In some states the increases maybe mitigated by some of the state governments removing their levies or delying increases by a year, but again it really only serves to create more uncertainity about the price of waste disposal and skip bin prices until the beginning of the new financial year.
- Authored By:Stephen Shergold