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Queensland welcomes legislation to repeal carbon tax

World Coal,

The Australian government has released draft legislation to repeal the country’s carbon tax from July 2014, a decision that has been applauded by the Queensland Resources Council.

Australian Prime Minister Tony Abbott said introducing bills to parliament to abolish the carbon tax would be his government’s first order of business, adding: “This will lower costs for Australian businesses and manufacturers, boost growth, increase jobs and ease cost of living pressures for households”.

“The repeal bills will remove the carbon tax, end the carbon tax on fuels used in shipping, rail and air transport and on synthetic greenhouse gases. The Climate Change Authority will also be abolished”, according to a statement posted on the PM’s official website.

Government subsidies to Australian industries such as the electricity generation sector and coal mining industry will continue to June 2014.

“Abolishing the carbon tax will improve Australia’s international competitiveness, which was being undermined by the unfair hit on business. The legislation will give the Australian Competition and Consumer Commission further powers to take action against businesses that engage in price exploitation following the repeal of the carbon tax”, the statement continued.

The carbon tax, together with the mineral resources rent tax on mining company profits, came into effect in July 2012 after being enacted by former PM Julia Gillard’s Labor party.

Queensland Resources Council's acting chief executive, Greg Lane said in a statement that the removal of the carbon tax would restore confidence in the Queensland coal industry, which he said was "confronting its toughest operating environment in more than a decade."

"Currently, Australian coal mines are paying the world's biggest price on carbon - AU$ 24.15 a metric ton in 2013-14," said Lane, adding that the carbon tax had put Queensland's coal industry at a competitive disadvantage.

Edited from various sources by Katie Woodward

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