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In the short run, a carbon tax such as the one set to go into effect next July would increase costs on industries that use a great deal of energy. These costs would most likely be passed on to consumers.
A carbon tax would force the largest polluters in Australian industry to pay taxes because of the amount of energy they use. This would, of course, raise their costs. In order to stay in business, they would have to raise prices. The government estimates that the average cost would be just under $10 per household per week, though critics argue it would likely be higher.
At the very least, a carbon tax would impose higher costs on Australian businesses. This would likely lead them to pass the price hikes on to customers or, in some cases, it might lead them to lose business to foreign competitors.
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