The Australian Competition and Consumer Commission (ACCC) have released its Carbon Tax Price Reduction Obligation, following the repeal of the carbon tax.
The Carbon Tax Price Reduction Obligation provides guidance to businesses on how to adjust their prices to fit the repeal of the carbon tax. These adjustments include decreasing prices that were increased when the carbon tax was introduced.
One method that businesses can use to calculate the adjustments that they need to make to their prices is to use the same method that they used when the carbon tax was introduced. Alternatively, businesses can make adjustments by considering their margin.
Businesses should make their necessary price adjustment as soon as possible. More information on the carbon tax repeal obligations can be found here.