The handbrake has been let off the economy now that the carbon tax has been axed, the Northern Territory government says.
Treasurer Dave Tollner wants savings from the repeal of the carbon tax to be passed on to consumers as soon as possible, backdated to July 1.
He said there will be an immediate 5.5 per cent saving on power, water and sewerage bills for Territorians.
"But obviously the carbon tax applies to more than just our utilities and one would expect we'll quickly see reductions in the cost of fuel, transportation, and pretty much anything that requires energy to manufacture," he told AAP on Thursday.
He also welcomed news that the Australian Competition and Consumer Commission (ACCC) will use its powers to monitor post-tax pricing.
"We have assurances from the federal government and the ACCC that they will be doing everything in their power to make sure businesses pass these savings on to their customers and that there's no profiteering going on," he said.
Mr Tollner anticipates $142 in savings on an average NT utility bill per year, and up to $245 per year for a large family and $790 for small businesses.
"Labor's carbon tax has been a handbrake on the economy right across Australia and probably most significantly in the NT," he said.
"We're a vast jurisdiction with few people, so transportation costs are high, airfares are high; all of these things one would expect to see a reduction in their prices."
The government will remove the carbon tax component of pricing by the Power and Water Corporation as quickly as possible, he said, which will save the troubled PWC $30 million this financial year.
Share
