with the carbon tax coming !
anyone in business for themself, would have seen a massive drop in market confidence. I am sure thats what Gav meant, and what I mean as well. Just watch the news everynight. There have been 20 massive transport companies close in the last few months. The market has carbon tax jitters for sure.
Got my breakdown from Origin today about how this tax is going to affect me... supply charge up by 50%.... cheap tarriff up by 50%... peak up by 15%. Next quarter of busines is going to be bad bad bad bad bad..., if you are unsure just how much things are going to cost, you dont spend.. its simple. Market has carbon tax jitters alright and quite rightly so... remember theres an increase in electricity cost to come yet also.
... oh and just to add rub salt into the wound.. the tax is subject to GST.. so tax on a tax..
... anyway, we digress.. so back on topic... those who can afford to RUN an ACDC pin might like to finance one.. yes?
get this, i currently pay $2500 a 1/4 on electricity another $2000 a 1/4 for Gass for my cafe lol.
got a letter from my gas and electricity company, about how my contract will change after july one. 30% increase in both, do the maths on how much my power and gas bill will be??? now im a small shop,
now i get a letter from coke saying those prices are changing after july,
i get a letter from our food supplyer saying my prices are going up, none are under 15% increase.
now how big of a hike is that??? all price increase is after july and all saying carbon tax. now labor say it costs the average family $3.30 a week extra in electricity based on a family using currently $350 a 1/4 bill.
now that's fine because that doesn't seem much but wait how much is $3.30 over a 1/4? because you dont pay your bill weekly.
then the gov says that's ok because you get $220 a year in payouts. that will cover your power hike.
but then you forget that hey whilest you are only paying $3.30 extra on electricity, the shop you are buying your food from is paying mega amounts more, so that price comes back to you.
then you forget every step of production your food has gone through to get into your fridge has been jacked up in price. so al the sudden you are paying a pile more.
just remember after the end of the next 1/4 when people know exactly how much this tax is going to cost them thats when you will see price hikes really coming. and see your cost of living going up. and then you will see some shops closing.
you also have to remember shops have to prepare them selves before policy is implemented shops cant just magically change to new system bang on the day it all changes.
whilest you as consumers dont know the prices after the carbon tax takes effect, the shops do.
because the big guys who supply us, have already costed it and sent us the letter saying the reason your contracted price isnt going to be same any more is because of the carbon price.
any changes to contracts they need to tell us in letter before hand. there is no compensation for business from the gov and for that reason prices will be passed onto you as consumers.
as for loaning against capital, instead of spending your money. the failing to that is you still need the money to pay for it. not only that you pay more for it in the long run, not only that if you fail to pay for it you loose everything. Not only that this way of thinking is why the usa went through recession.
My way of thinking is if you pay for it you own it, and if you own it and go broke you still own it, and if you go broke you dont take some one elses money with you.
I recon if you walked into a room of millionaires and had only $1 in your bank and no debt you would be the richest guy in the room. to many people think how to gauge how rich you are is by how long your line of credit is.wrong
Totally agree
I run a vending business and last week had to regas to compressors at $200 each as of 1 July it goes to $350
Coke and Schweppes both sent letters of price rises
Both these companies have 50000 vending machines plus 100000 + fridges in cafes etc and all need regassing WOW!
inflation will go through the roof in next 6 months as I will be increasing my prices as well!
