Aussie Businesses to Continue Paying Carbon Tax Until June 2014 Under Newly Released Draft Repeal Legislation

While Tony Abbott, when he was still Opposition leader in mid-2012, vowed that the first thing he would do if he would win the federal election and become prime minister is to repeal the carbon tax law.

Well, Mr Abbott fulfilled his ambition and became PM in September 2013 after the Coalition won over Labor in the federal election. However, while the Abbott government released on Tuesday a draft legislation to repeal the carbon tax, Australian businesses would still need to pay the tax until June 2014.

Although the government placed high priority in repealing the carbon tax law and made sure it is one of the first orders of business when Parliament begins on Nov 11, parliamentary procedures take time to move from bill to law.

"Liable businesses and other entities must pay all carbon tax liabilities incurred up to June 30, 2014 through the carbon-pricing mechanism, excise or excise equivalent customs duty, fuel tax credit adjustments or synthetic greenhouse gas levies," the draft legislation stated.

With the planned repeal underway, the Abbott government would no longer implement the second round of personal income tax cuts slated to begin in 2015/16 intended to compensate households as Australia transitions to a floating carbon tax scheme.

But despite the non-implementation of the new round of tax cuts, the government said Aussie families would still save $550 yearly due to the abolition of the carbon tax.

As part of the changes, the Australian Competition and Consumer Commission was empowered to make sure that businesses would cut their prices which they increased on account of the carbon tax which the government led by former Prime Minister Julia Gillard started to collect in July 2012.

New Australian Labor Party leader Bill Shorten, upon his election on Sunday to replace Kevin Rudd, vowed to block the government's planned repeal of the carbon tax.

However, Mr Abbott dared the ALP, now the Opposition, to "defy the mandate of the Australian people" by blocking the repeal legislation in the Senate where Labor rules.

"We are giving the Labor Party the chance to repent of its support for the carbon tax," The Herald Sun quoted the PM.