Small businesses may not be as affected by the upcoming carbon tax  as larger corporations but for those that may be contemplating how to cope with the new scheme come 1 July 2012, here are some tips on how to ease the  transition.

• Review your pricing
• Go green
• Take advantage of government support

Review your pricing

Australia's top 500 polluters slugged by the $23 per tonne tax will likely pass on the increased cost of energy production onto their consumers and customers- which includes the two million small businesses in Australia. In turn, small businesses may be forced to pass on these costs to their customers, which will be reflected in their product pricing.

To avoid unnecessary stress, SMEs should review and re-evaluate their pricing now instead of July next year. Firms should think about whether they can afford to absorb the increased cost and face straining their cash flow cycle, or raise their pricing at the risk of potentially losing clients.

However, both options may be too difficult for SMEs to integrate into their business plan given the current climate of stagnant consumer spending.

According to Peter Strong, Executive Director of the Council of Small Business of Australia, "small businesses will find it more difficult to pass on increased prices while big business can absorb any costs."

"We need to have the ACCC focused on the behaviour of these big businesses and make sure that small businesses do not become less competitive due to predatory pricing and behaviour."

Go green

Small businesses can save in other areas by reducing their energy consumption through simple measures such as switching off the lights and turning off appliances that are not used on a daily basis. This can include mood lighting, hot water boilers, heaters and additional computers or telephones.

Firms may also consider switching to energy efficient light bulbs and getting rid of unwanted appliances such as an expensive coffee machine or a lawnmower.

Firms should also look into long term energy-efficient power systems such as solar or wind energy, which usually attract government assistance packages. Going green can also appeal to environmentally-conscious investors, potential employees and clients.

Take advantage of government support

Part of the government's carbon plan includes assistance to SMEs and can be extremely beneficial if fully utilised. Small firms are not obligated to pay the carbon tax and do not need to monitor their emissions or energy use, unlike big businesses.

Support to SMEs include:

• Asset write-off up to $6500 for businesses with annual turnover of less than $2 million
• $40 million in Energy Efficient Information Grants
• $5 million over four years to facilitate business development for supply chain businesses
• $800 million in assistance to manufacturers
• $200 million in assistance to food processors, metal forgers and foundries

For more information, visit the Clean Energy Future website.