Tony Abbott tries again to repeal carbon tax with Senate shake-up due

Australia's conservative government yesterday reintroduced a bill to repeal a carbon tax ahead of a shake-up in the Senate, which has previously rejected the levy's removal.

"Repealing the carbon tax will reduce the cost of living, make jobs more secure and improve the competitive position of our country," Prime Minister Tony Abbott told parliament. "Why would anyone be against that?"

The make-up of the Senate will change from July 1 when the Palmer United Party - led by Clive Palmer - will hold the balance of power.

This means Abbott will have to negotiate with the mining magnate to pass the laws, previously rejected by opposition lawmakers.

The government has said that repealing the carbon tax, brought in by the previous Labor government, will still allow the country meet its promised 5 per cent reduction in emissions by 2020.

Abbott claims the move will save the typical household A$550 (HK$4,000) a year through lower electricity prices.