The Prime Minister Tony Abbott yesterday introduced the Clean Energy Legislation (Carbon Tax Repeal) Bill 2013 to parliament.
He told parliament that the Australian people have already voted upon this Bill.
"Madam Speaker, the election was a referendum on the carbon tax. The people have spoken. Now, it’s up to this Parliament to show that it’s listened," Abbott said.
"Madam Speaker, repealing the carbon tax should be the first economic reform of this Parliament and it will be followed by further economic reforms: bills to repeal the mining tax, to restore the Australian Building and Construction Commission and to deal with Labor’s debt legacy.
"When the price of power comes down, the Australian Competition and Consumer Commission will be ready to ensure these price reductions are passed on to households and businesses."
Not only does the carbon tax make it more difficult for Australian businesses to compete abroad, Abbott said it makes it more difficult for domestic businesses to compete at home.
He said repealing the carbon tax removes over 1,000 pages of primary and subordinate legislation.
"Repealing the carbon tax cuts the size of the climate change bureaucracy," Abbott said.
"The intention of the new government is to put power prices down by axing this toxic tax and by using other means to reduce emissions.
"No one should be in any doubt – the Government is repealing the Carbon Tax in full.
"We are not playing word games. We are not playing tactical political games. We are doing what we were elected to do," he said.
"We are not keeping the machinery in place so we can dust it off in the future. We are abolishing the carbon tax in full. We have said what we mean and we will do what we say – the carbon tax goes."
Abbott said repealing the carbon tax at the end of the financial year provides certainty for business and it simplifies the transition.
"It means that this government will not be proceeding with the previous Government’s legislated carbon tax increase that would have taken effect from the 1st of July next year," the Prime Minister said.
"Madam Speaker, under this Government, the Carbon Tax will not apply from 1 July so there will be no need for further compensation packages."
Instead, he said the government will move ahead with its Direct Action plan.
The centrepiece of the Direct Action Plan will be the Emissions Reduction Fund – a market-based mechanism for reducing carbon dioxide emissions.
Both Labor and the Greens, who control the Senate until July 1, 2014, will oppose the Bill.
While the Abbott government has the numbers to pass the bill through the House of Representatives, it may have to wait until the new Senate sits next year to get the legislation through both houses of parliament.