A flyer sent out by Tony Abbott has potentially exposed small businesses to fines of up to $1 million each.

The Opposition Leader wrote to thousands of small business owners warning them of the impact of the carbon tax. The letter, from Mr Abbott and opposition small business spokesman Bruce Billson, is accompanied by a flyer that shop keepers - specifically butchers - have been encouraged to place in store windows.

Meaty warning ... a copy of the flyer.

The flyer states: "The federal government estimates that the carbon tax will increase the cost of energy by 10 per cent in its first year of operation. It will also increase the cost of our suppliers. Higher electricity prices mean it will cost us more to keep our meat refrigerated.

"We always strive to keep our prices at reasonable levels but because the carbon tax will make electricity more expensive, our prices will increase. We apologise for these price increases."