Treasurer Joe Hockey says the closure of Alcoa's Geelong aluminium smelter is disappointing but predictable.
Alcoa has announced it will permanently close its Point Henry aluminium smelter in Victoria in August.
"It's disappointing but it was certainly predictable because in 2012 Alcoa did an analysis and said the plant was not financial viable," Mr Hockey told reporters in Sydney on Tuesday.
He said the $40 million given to Alcoa by the previous Labor government was money "down the tubes".
The carbon tax had added to the cost of production and the closure gave further weight to the argument that Labor should support the tax's repeal in parliament, Mr Hockey said.
"It's a massive cost on aluminium smelters, and a 50-year-old smelter with a carbon tax is never going to be cost-effective," he said.
The treasurer said the government had no "silver bullets" to boost industry but would put in place the right tax and regulatory settings to create jobs.
Asked whether he had a message for Alcoa workers, Mr Hockey said: "I feel for you. This is a sad day for you and for others but there is a new dawn - it must get better and it will get better."
