Mr Taxman
Change the way you feel about taxes.
Get informed and discover what the taxman doesn't want you to know.
Sharing it with Australia, Mr Taxman is a regular Woman’s Day columist and TV finance commentator
  • click to visit Mr Taxman on Twitter
  • click to visit Mr Taxman on FaceBook
  • rss

Carbon Tax and what to means to me

May 17, 2011

Whilst I may be known as Mr Taxman I profess that, as at today's date, I am not an expert about Carbon Tax.  I have no opinion on whether it will be good for the economy, the Government, companies, Australian households or even the environment, in general.  I have no idea of whether $20 per tonne is a fair price or whether it should be closer to $40 per tonne as per the leaked consultancy document earlier this week (although I suspect that it was a political game to scare the public with the $40 price and then announce a "lower" $20 price in order to get it passed!)

But there is one thing that I do know about the proposed Carbon Tax and that is it will be great for the accounting industry, particularly aspiring accountants looking for a job opportunity in the future.  It is always the same when any significant new tax legislation is introduced.  There will be a rush for accountants to know how to apply the Carbon Tax and then in a few years' time find ways to legally minimise the Tax.  The quicker the minimisation process the better for company executives and shareholders. 

I remember being seconded to Dunedin by a big-4 firm back in the 1990s to learn all about the Goods & Services Tax in New Zealand because Dr John Hewson was going to win the "unlosable" election and introduce a similar broad-based consumption tax in Australia.  I never got to publicly thank him for his infamous birthday cake interview on A Current Affair (how many candles was it again John?) but his monumental stuff-up led to an enjoyable eight-week paid holiday in the South Island during snow season.  So thank you Dr John! 

So when "Uncle John" got into power in the next election and introduced the GST, all of a sudden there was an urgency for GST experts around the country.  This was great news as I had just started up my own little accountancy practice a year earlier and my valuable, albeit somewhat short, NZ experience would create a competitive advantage that I would enjoy for the following decade.  My small little practice grew quite dramatically and with new clients coming in the door at a rapid rate it was like shooting fish in a barrel.  Again a special thank you to Dr John.

The new Carbon Tax will also provide a huge lift for the education industry as more companies will need people trained up on the new tax.  Expect accounting software providers to have a "new" Carbon Tax calculator on their products.

I told my Corporate Accounting class a few weeks ago that the new Carbon Tax would provide such great opportunities for them in the future, like the GST provided me.  And they could become "experts" within eight weeks!  What a great incentive for them to put in the hard yards when it is so difficult to get a job with no experience these days.

So over the last eight weeks, I have got my uni students doing an assignment on Carbon Tax and the Emissions Trading Scheme.  I split them into groups of five and each group is looking at a different Australian public listed company and what the impact will be on the balance sheet and the income statement.  They provided a preliminary report to me a few weeks ago with some interesting results.  Stay tuned for the final results in a few weeks' time.

I expect that the new tax will also provide an opportunity for the entrepreneurial accountant.  Stay tuned for CarbonTaxMan to hit our screens very shortly.  Whoever that is, then just remember to publicly thank "Auntie Julia" in a decade from now.

Tags:

Author: Mr Taxman

Comments

Post a New Comment

Media Availability

Are you interested in booking Mr Taxman for a speaking engagement or requesting his viewpoints for an article?

comments-rhsLatest Comments

  • "Hi. I came to Australia as a de-facto spouse. I have recently taken out a couples private health insurance policy for my partner and I and a reciprocal health care plan ontop for my partner only..."

    By: Lucy Howe at Aug 20, 2017 7:20AM

    Post: Marriage

  • "Hi Mr Taxman, I am married to my wife for 3 years now and it is the first time for us to lodge tax return in AU as we moved here in June 2016. I opened a personal bank account and deposited some..."

    By: Jure at Aug 16, 2017 5:39AM

    Post: Marriage

  • "hi, i run a small business that is yet to turn a profit as my start up expenses were high. Is it possible to offset these losses against my husband income?"

    By: heidi at Aug 15, 2017 11:19PM

    Post: Marriage

  • "Hi, not sure if this is travel or vehicle expenses..... Home is in town A - employer is located in town A (but I rarely work there). Get seconded for 12 months to town B (120km away) and other..."

    By: Jason at Aug 04, 2017 4:04AM

    Post: Claiming car expenses

  • "I've paid my outstanding HECS debt so my balance is now $0. My question is......Is it a good idea to keep the HECS coming out so at tax time I get a large lump sum back OR cancel my HECS and receive..."

    By: Sophie at Jul 31, 2017 8:38AM

    Post: Two important dates for those with HECS/HELP debts