The CEO of franchise chain Zarraffa’s Coffee has spoken out about the cost of the Federal Government’s Carbon Tax after lease negotiations reveal landlords may be looking to pass on the expense to tenants.
Kenton Campbell revealed the inclusion of special conditions to cover the expenses of the tax in the fine print of Zarraffa’s leases with one of Australia’s largest retail property groups. The special conditions stated”… the Lessor may pass this carbon or greenhouse gas emission related charge onto and recover the same from the Lessee at costâ€.
Campbell is concerned added costs will be bring additional pressure to bear on the retail sector.
“If one of Australia’s largest retail property groups has started planning for a rise in costs, others will soon follow suitâ€, he said. “Carbon Tax adds insult to injury, by not delivering a long term solution to the carbon issue and indiscriminately weakening businesses across all industries that will not be able to carry increased costs on top of Federal Pay Reforms and other recent hikes in levies and taxes. More.