The results of a survey into the effects of carbon tax on retail businesses have revealed over a third of retailers plan to cut staff as a consequence of lost trade due to the tax.
The survey, which was conducted by the Australian Retailers Association over July to August, included 500 retailers who were asked various questions about the expected impact of the Gillard government's carbon tax on their business.
Australian Retailer's Association executive director, Russell Zimmerman said the results were alarming.
“As an industry that's Australia's largest employer of people, this is a disastrous finding.”
Survey results revealed that a further 83 per cent of retailers were expecting a drop in consumer spending as a result of the tax.
With consumer spending already on a slow as a result of rising interest rates and output costs set to rise with the commencement of the tax in July 2012, retailers are feeling the strain, said Zimmerman.
“Aside from trying to reduce their own energy costs, there will be transport and delivery costs increases as a result of the carbon tax that retailers have no control over. This is why we have had such an anxious response from retailers ultimately worried sick about the future of their business, staff and livelihood.”
The survey also underlined growing frustration amoung retailers who have taken measures to reduce their carbon footprint and decrease energy bills only to find rising utility costs are set to put businesses back to square one.
Zimmerman said the survey results highlight the challenges small business owners are facing in an increasingly stressful and uncertain retail market.
“This isn’t about big business whining over cost increases and their bottom line; these are small retailers who are families, single mothers or young couples trying to support themselves in life just like all working Australians.”