The carbon tax repeal will deliver cost savings to Australians with the extent to be judged by consumers, says Prime Minister Tony Abbott.
Australian households should quickly notice a fall in energy costs after the scrapping of the carbon tax.
But while Prime Minister Tony Abbott is confident prices will drop in the next round of power bills, the net saving for Australians remains unknown amid other budgetary measures.
“There are swings and roundabouts,” Mr Abbott told ABC TV on Wednesday, hours after the repeal passed the Senate.
He cites Treasury figures that the repeal will save the average family $550 a year and the first benefits would be seen in coming power bills.
The Australian Competition and Consumer Commission had been given the funding and powers to ensure savings are passed on to consumers.
But the prime minister would not commit on what further savings might flow.
“I’m going to let people come to their own conclusions.”
Could the baseline saving be neutralised by government-proposed legislation such as the GP co-payment?
“This is all part of a comprehensive economic plan and all the bits go together,” Mr Abbott said.
Most importantly, Australia has got rid of the world’s biggest carbon tax, he added.
“What we lost today was an international aberration because no other country anywhere had an economy-wide carbon tax or emissions trading scheme on this scale.”
A climate change believer, Mr Abbott will push ahead with plans for Australia to meet its emissions reduction target by way of Direct Action.
“I’m confident that by the time the legislation goes to the Senate it will get support,” he said.