Tax Avoidance Is Good!


Who likes paying tax? Not me. So the introduction of a carbon tax by the federal government on July 1 gives me all the incentive I need to cut down on everything pushing me into a high carbon tax bracket.
I am a big believer in putting a price on carbon, but avoiding the carbon tax is a form of tax evasion where everyone can benefit – even the environment.

Turn your business into a carbon tax haven!

Most homes and businesses currently waste between 10% and 50% of the power they consume. From the start of the next financial year, reducing your energy profile not only reduces your carbon footprint but your tax footprint as well. The time has arrived when householders and businesses need to become more savvy about their approach to carbon emission minimisation.

For example, Bentley University in the US reports that in the first 11 months of using asset management software to track and optimise energy usage, it reduced campus-wide electrical consumption by 10% – the equivalent of turning off all electricity on campus for approximately 35 days pa. It also realised a 200% return on investment from reduced energy costs. And that is without a price on carbon.

Consumer group “Choice” estimates Australian households taking simple energy saving measures such as switching off appliances when not in use, retiring old fridges, line drying rather than the dryer, washing in cold water and using water saving shower heads can save up to $715 per annum on their power bill. Considering the compensation package to householders, the carbon tax could be a win-win situation for those who avoid creating carbon pollution in the first place.

So what else can we do?
If your business runs air conditioning, it should be set between 23 and 26 degrees. Every degree outside of that adds about 10% to your energy and your carbon tax bill.

So once you have reduced your wastage to a minimum there is still more you can do, ie convert to low carbon emitting technology such as solar power electricity. Solar power has now become so cheap and efficient that for a business or household who use electricity during the day, solar panels can bring your home or enterprise towards carbon neutral and minimise your tax bill.

For example, if your power bill is $1000 per quarter and you use most of your electricity during the day, a 5 kilowatt solar power system on a good aspect would be a ideal. Costing approx. $11,950 after rebates fully installed and saving around $2,280 per annum based on today’s prices, even more as power prices increase. If your power bill is lower or higher than this, the system design can be adjusted accordingly.

Be a good citizen – avoid the carbon tax!

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