Close×

The carbon tax is set to set to remain in place for another 12 months with the Greens and Labor looking at ways to block legislation even after the introduction of a new senate on July 1, 2014.

It is a daunting proposition for industry who have repeatedly warned that the longer it takes to repeal the tax the more costly and complex it is for business.

The senate is currently voting on the Carbon Tax Repeal Bills.

However, the Greens and Labor have already confirmed they will block the legislation forcing the government to wait until the new Senate sits in July, 2014.

Anticipating this scenario the government is planning to schedule two sitting weeks for the Senate beginning July 7, which is highly unusual as parliament rises at this time of year for a winter break.

And while the government schedules parliamentary sitting days, these dates must be ratified by the senate.

The Greens are hoping to get support from Labor to block these dates and push parliament back until September 2014 or even later.

This would prevent the Carbon Tax Repeal Bills being introduced to the Senate for almost 12 months which would postpone the government's carbon tax timetable and create big problems for industry.

Business groups claim the longer it takes to abolish the tax, especially in the new financial year, the more expensive and administratively complex the repeal will become.

The Australian Aluminium Council said if the legislation is not passed by September 2014, even retrospective action will be unworkable.

Labor Senators said passing of the bills would be "irresponsible" in the face of a lack of a "credible" emissions reduction policy from the government.

The Greens also expressed strong opposition to the carbon tax repeal legislation, saying the world was facing a "climate emergency" with Australia at a clear crossroads.

Adding to the government's woes this week, Labor and the Greens agreed to split the package of bills to force separate votes on the abolition of the Climate Change Authority and Clean Energy Finance Corporation.

The government is seeking to have both organisations abolished as part of the Carbon Tax Repeal Bills.

Industry sources told CCN that the entire process has become extremely difficult with business unable to effectively plan ahead.

"It's an impossible situation for the HVAC&R industry as its extremely hard to try and operate in such an unpredictable business environment," he said.

"The more drawn out the process becomes, the harder it is for industry to compete. These political games are adding a lot of unnecessary cost and complexity."