Australia: ACCC says that Boral is not passing on its carbon tax savings

Bya897204973

Updated Tue, 03 Feb 2015 14:42:29 GMT

The Australian Competition and Consumer Commission (ACCC) has said that it is 'chasing up' Boral's failure to pass on savings from the carbon tax repeal.

Legislation to remove the tax was passed in July 2014. ACCC chair Rod Sims said that compliance from the affected businesses had since been very good. However, he singled out landfill companies and Boral for not passing on savings.

The ACCC said that Boral had informed customers in 2012 that the price of cement and terracotta products would increase by 1% and 3% respectively. Boral's CEO Mike Kane said, at the company AGM in October 2013, that the carbon tax would cost it about US$15m/yr.

"We've got a couple of companies that we're chasing up, but they're more ambiguous and so we haven't named them," said Sims. "But Boral, yes, we do have a problem. We're engaging with them." A spokesman for Boral said that it was continuing to comply with its obligations related to the tax removal.