Around $100 million of carbon tax charges will be returned to local councils and used to help reduce Australia's emissions, as part of a new plan announced last week by the federal government.
Environment Minister, Greg Hunt, said Labor's carbon tax not only raised electricity and gas prices, but hit homeowners through higher council rates and waste charges.
"While some councils have already been able to refund ratepayers and waste users, complex supply chains between waste providers, local councils and customers meant that some payments have been delayed until now," he said.
"Local councils around Australia will receive carbon tax refunds, and will be able to pass savings on to ratepayers through lower council rates and waste charges.
"But as we saw at the ALP Conference, Bill Shorten is committed to bringing back the carbon tax - he just won't call it that - he'll call it an Emissions Trading Scheme (ETS) instead."
Hunt said the Waste Industry Protocol being put in place by the Australian Local Government Association and the Australian Landfill Owners Association, and other similar arrangements, will also see funds used for local projects, such as investing in energy efficient street lighting, solar panels for council buildings, or new green waste and recycling services.
He said refunds to local council customers mean consumers and ratepayers are already benefitting from the actions of landfill operators doing the right thing - through lower prices, reduced rates and improved local amenity.
"This will also bring about significant new investment in waste treatment and other local environmental projects, that will take Australia further towards achieving its emissions reduction targets," Hunt said.
"Following repeal of the carbon tax in 2014, landfill operators no longer require the early collected carbon charges to meet these liabilities.
"The Waste Industry Protocol will see participating landfill operators return these funds to consumers where practicable."
The Shadow spokesperson for the environment, Mark Butler, confirmed that Labor will take the Emissions Trading Scheme to the 2016 election "because we know that a legal cap on carbon pollution that reduces over time in accordance with our international commitments is the best way to deal with carbon emissions."
He accused the government of handing out billions of dollar to big pollutors without any impact on the national carbon footprint.
"Labor will take a 50 per cent goal for renewable energy by 2030 to the election because we know that renewable energy will be a central part, not just of Australia’s energy system, but of our industrial and jobs base as well," Butler said.