The Abbott Government has repealed the carbon tax today.
It comes after the initial repeal was blocked in the senate earlier this year.
The move, which was signalled by Abbott in his election run, has been a divisive one with carbon emissions reduction plans scrapped weighed against more than $700 million in costs for this financial year directly from the carbon tax on the QLD mining industry.
Following the announcement, Abbott stated that he had achieved the election promise of ‘axing the toxic tax’.
It was followed by an email to the Coalition’s supporters stating: “This is great news for Australian families and for our nation's small businesses.”
The news was welcomed by the NSW Minerals Council, the Queensland Resources Council, and the Australian Mines and Metals Association.
The QRC stated that “one of Australia’s biggest public policy mistakes in decades has been fittingly consigned to the dustbin with today’s repeal of the carbon tax legislation”.
“Repeal of the carbon tax is good news for the Queensland economy,” QRC CEO Michael Roche said.
“The carbon tax was a massive double-fail.
“It failed to achieve its environmental objective of reducing greenhouse gas emissions while loading the Australian economy with costs over and above anything imposed on minerals and energy export competitors.”
The NSW Minerals Council added that this repeal will help to save resources jobs, congratulating the Government on the decision.
“This tax was a burden on mining in NSW and more than 10,500 businesses servicing the sector, from Western Sydney to Western NSW and from Wollongong to Werris Creek,” the NSWMC stated.
It called the tax “a dead weight that put our NSW miners at a disadvantage to overseas competitors - all economic pain with no environmental gain - and has contributed to our state falling as a destination for mining investment”.
According to the ABC in Broken Hill, the carbon tax directly cost miner Perilya $3.5 million a year.
The AMMA was emphatic in its support of the repeal.
“Repealing the carbon tax removes one of two ideologically driven, flawed taxes imposed by the former government that have added unnecessary costs and risk to investing and doing business in Australia,” AMMA chief executive Steve Knott said.
“The next step in restoring Australia’s global competitiveness should be repealing the Minerals Resources Rent Tax (MRRT).
“We need to remove the impediments that stand in the way of further development of our resources sector and secured the associated employment opportunities and economic growth.”
However there has been massive backlash from the opposition and the Greens.
In addressing the Parliament prior to the repeal’s passing, Labor’s Lisa Singh said “we are about to devastate the future of this country”.
Greens leader Christine Milne stated her party will fight to bring back the tax under “a more rigorous framework of legislation that will get Australia on to the track we need to be on, and that is a 40 to 60 per cent emissions reduction target on 2000 levels by 2030”.
Barnaby Joyce took a middle ground approach to the repeal, stating that "I believe that there is climate change happening, I just don't believe that we are going to change it with a broad-based consumption tax”.
The mining tax is now in the Coalition’s sights for a repeal.