• Service: Audit, Accounting Advisory Services, Climate Change & Accounting Assurance, Advisory, Management Consulting, Demographics, Risk Consulting, Climate Change & Sustainability Services, Topics, Climate Change
  • Industry: Building materials, Real Estate & Construction
  • Type: Business and industry issue
  • Date: 25/10/2011

Australia's Climate Change Plan analysis

Climate Change Plan Analysis
KPMG's analysis of the Australian Government’s Climate Change Plan, including the carbon price mechanism.

The impact of a carbon price – Property and Construction 

The Australian Government's proposed carbon price mechanism represents a significant reform for the economy and is one of the triggers creating a shift in property design. 

This factsheet details the impact of increased costs such as electricity and gas, fuel and waste disposal, along with next steps for business to get ready for the 1 July  2012 start date.


Key design elements of the carbon price relevant to property and construction sectors

  • Indirect cost increase in energy and cost pass-through in the supply chain from materials.
  • It is unlikely that a property company will be classified as a 'liable' entity and have to purchase permits.
  • Impairment testing will require consideration of the carbon price. Buildings with low environmental and performance ratings may not be highly sought after by tenants.
  • Payback periods on capital investments will change.

Real Estate & Construction

KPMG’s Real Estate & Construction practice offers audit, tax and advisory services for a diverse client base in the property and construction sectors.

Building Materials

Our services focus on assisting our clients to address key issues facing the building materials sector.
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