Accountants alarmed by carbon tax impacts

The financial performance of Australian small business owners will be negatively impacted by the introduction of a carbon tax, according to the results of a survey of accountants.

The survey, conducted by the Institute of Public Accountants, revealed that 70 per cent of respondents believed small business would be negatively affected, with 63 per cent of respondents believing those same small businesses would not be adequately compensated.

Commenting on the survey, IPA chief executive, Andrew Conway said his organisation's members were trusted advisers to the Australian small business community and he believed it was alarming that so many of them perceived a bleak outlook for the small and medium business sector over the next 12 months.

"We are not talking about one industry, we are talking about a pessimistic outlook across the entire small business community in Australia," he said.

"Despite the Government stating that only the top polluters will be impacted with the introduction of the carbon tax, it seems the interests of small business have not been considered," Conway said.

The IPA survey revealed 66 per cent of respondents believed there had not been enough consideration given to how the carbon tax would impact small business, while 67 per cent believed there had been insufficient information provided to small business over how the carbon tax might affect them.