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Business groups awaiting carbon tax scrap

Business groups believe Labor's carbon tax has been a deadweight on the economy and didn't achieve its environmental objective.

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Source: AAP


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Business groups believe the government's ambition to scrap the "deadweight" carbon tax should be respected by other parties in federal parliament.

The coalition took its first steps to scrapping the impost on carbon emissions on Thursday by abolishing the Climate Commission.

Environment Minister Greg Hunt also signed a departmental brief to close the Climate Change authority.

But the government still faces the more difficult task of getting legislation through parliament to end the carbon-pricing regime.

Australian Chamber of Commerce and Industry chief economist Greg Evans says the Labor opposition must support the government's plan to abolish the tax.

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"It would immediately lower energy prices for business, add to their business viability and it will be a shot in the arm for confidence," Mr Evans said.

Minerals Council of Australia CEO Mitch Hooke said the impost had driven up business costs.

"They are simply deadweight costs that none of Australia's minerals export competitors face," Mr Hooke.

"The introduction of the carbon tax was a significant policy mistake.

"It loaded Australia's economy with unsustainable costs and has failed to achieve its environmental objective."

He said the minerals industry would contribute to a government white paper on the development and implementation of the coalition's direct action climate change policy.


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