Steve Lewis, Anne Wright
Herald Sun
March 15, 2012
THE full impact of the carbon tax on struggling small businesses, retailers and shoppers has been exposed in secret documents.
The Herald Sun has obtained a copy of a “carbon or greenhouse gas emission charge” clause included by shopping centre giant Westfield in a lease agreement with retailers.
Other shopping centre owners are expected to insert similar clauses.
Businesses say such clauses will add thousands of dollars to their annual rent and power costs.
Fees will be passed on, with the prices of everything from a cup of coffee to haircuts and sporting goods rising from July 1, they warn.
One business owner – with a chain of stores across Victoria, Queensland, South Australia and NSW – estimates the carbon tax will add $250,000 to annual costs, including an extra $100,000 in rent.
Under standard lease agreements, Westfield, Stockland, Centro, AMP and other landlords require retailers to contribute to airconditioning, cleaning and electricity. Westfield has almost 12,000 retailers operating in its malls across Australia, with six centres in Victoria including Geelong, Fountain Gate, Doncaster and Southland.
Mohammed Al-Tahan, owner of The Block cafe in Westfield Doncaster, said his budget was stretched to meet his current costs.
“It’s pretty hard already. I’m already struggling running it with two staff because it’s quite a lot, so for us to have that sort of cost on top would see us seeking cheaper staff,” he said.
The Federal Government will compensate pensioners and families through tax cuts and increased family payments, but most small business operators will miss out on Canberra’s support.
Westfield referred inquiries to Milton Cockburn, CEO of the Shopping Centre Council, who described the lease clause as “no different from an independent decision by an electricity supplier to increase the rate of electricity”.
“The reality is that there are recoverable outgoings in all leases and electricity is one of those recoverables,” he said.
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