The new senate was sworn in yesterday with the government moving quickly to push for a vote to repeal the carbon tax.
With the new senate in place the government now has the numbers to repeal the tax with a few amendments from Clive Palmer and the Palmer United Party (PUP) senators.
Repeal of the carbon tax will be backdated to July 1, 2014 with the legislation set to go before the senate later this week or early next week.
Palmer has agreed to vote with the government if the Climate Change Authority (CCA) and the Clean Energy Finance Corporation is retained and Australia moves to a zero-rated emissions trading scheme.
In a report to the government, CCA chair Bernie Fraser said Australia should not abandon the carbon market completely.
He said international carbon credits could be used to cut Australia's emissions by up to 19 per cent for less than the cost of the Direct Action policy.
International carbon credits are currently priced at less than a dollar while Direct Action will cost $2.5 billion over four years.
Carbon pricing was expected to cut Australia's emissions by five per cent by 2020.
The CCA report said the government can increase that five per cent figure to 19 per cent at a cost of $500 million making it far more cost effective than the Direct Action policy.
"If the government decided to use international units to help meet Australia's emissions reduction targets, it could either buy units directly though a government purchase program or design domestic policies to encourage the private
sector to purchase international units," the CCA report said.
The CCA was established as a government advisory body in 2012.