Impact of GST on Energy Costs

01 Sep 2000Archived News Climate Change Matters

For many large energy users which can claim back the GST they pay on inputs, the new tax system will lead to savings (albeit marginal) in their energy costs.

 

Introduction


A wide range of sources has been reviewed in compiling the following summary (see list at end), and the information provided is of a general nature only. It is intended to provide an indication of what you can expect from your energy retailers. The level of savings you achieve will depend on your current arrangements, where you are located, and who you are supplied by etc.

The emphasis is on electricity and natural gas as these are the main energy sources for most businesses, however feel free to contact us if you have any queries on other energy sources.

Electricity


According to the ACCC and the Electricity Supply Association of Australia, as a result of the introduction of the GST the cost of electricity will increase by 9-9.5%. Unfortunately for large users of electricity, this is much higher than the Federal Government's original forecast of a 6.6% increase.

Differences in the net impact of GST between suppliers of electricity are the result of variations in GST compliance costs and different tax savings for different industry sectors (eg. retail and network).

Refer to attachment for more information.

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