Carbon tax repeal good for Queensland: Govt

Queenslanders will be about $170 better off a year after the repeal of the carbon tax, the state's energy minister says.

After days of debate and stalling tactics, the Senate on Thursday voted 39 to 32 to unwind the carbon pricing scheme introduced by Labor in 2012.

Queensland Energy Minister Mark McArdle has told a budget estimates hearing the repeal means the standard household electricity tariff should now only increase by 5.1 per cent instead of 13.6 per cent in the 2014-15 financial year.

"That will now see a reduction in power bills in Queensland of $170," Mr McArdle said.

Mr McArdle also said the tax's axing will provide tariff reductions for businesses and farmers.

"The industry must respond to the repeal of the carbon tax by passing on the savings to Queensland families," he said.

Simplistic tax calculations

It's not as simple as this. Not only is there the question of whether the companies will pass the saving on (experience suggests not) but there is also the matter that the money from the carbon tax could have been used to lower general taxes. Also, the government has now pledged $2.5 billion in subsidies to the industries involved to reduce carbon emissions and that's $2.5 billion the taxpayers will have to pay. All of this will bite into the $170 figure. When added to that the possible economic consequences of not tackling climate change (DDC .. now's your chance to hit me with some sterile old falsehoods) I suspect the public (across the whole of Australia) is likely to gain nothing.

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