On 10 July 2011, the Federal Government announced the long-awaited carbon tax to mixed reaction from industry. It is important to note that these are only proposals only until the legislation is passed. They have suggested we will have a transition period until 1 July 2015 when a market-based pricing mechanism is expected to begin.
While it may be good news to have the proposal available for review, it is too soon to predict with any certainty the impact of the carbon tax on AvSuper and superannuation in general.
The AvSuper Trustee will be reviewing the carbon tax in detail over the coming months to get a full understanding of the costs, opportunities and any relevant compensation promises for the Fund and for all our investments. In particular, we will look at Australian shares as individual company’s market valuations settle down, infrastructure investments and possible clean technology investments.
Actual costs for companies are yet to be seen but we hope there will negligible impact on super funds at least for the short to medium term.
As we learn more about the carbon tax and analyse the included risks and rewards for your retirement savings, we will keep you informed about these developments.