A textile factory in Tasmania's north-west claims jobs could go because of the carbon tax.
Australian Weaving Mills employs about 80 workers at its Devonport mill.
Chief Executive Geoff Parker says the company's competitive advantage has always been how fast it can weave raw cotton into material for towels and bed linen.
He says the company is considering importing material to make the towels and can not rule out job losses.
"The dollar has gone up to parity and above, makes everything you make in Australia quite expensive relative to imports," he said.
"To have that at the same time as in our business, a massive downturn in retail, at the same time as a carbon tax loaded on top of it is just something I don't need.
"I've got something, in total, of about $300,000 of additional costs to wear from July onwards.
The Premier, Lara Giddings, has dismissed claims that the carbon tax will cause the job cuts.
"I know that Australian Weaving Mills is a company which government has had a long association with," she said.
"We have helped and tried to help that company for many many years.
"The carbon price hasn't been around for all of that time and it has been a manufacturing industry that has just managed to keep going."