Fees remain after carbon tax repeal

THE carbon tax forced the City of Greater Bendigo to increase its rubbish collection fees, however it has not committed to lowering tip fees this year despite the repeal of the tax. 

Earlier this year, chief executive Craig Niemann said the federal carbon tax would add an extra $1.6 million to the council's landfill and waste expenses, which was passed on to ratepayers.

Mr Niemann said home owners would pay an extra $22.50 for collection of their 240-litre rubbish bin over the next financial year, or an extra $13 if they have a 140-litre bin. 

"The carbon price has raised the prices of landfill and this has forced council to recoup costs through increased fees," he said. 

He confirmed the additional costs were a direct result of the carbon price, which was repealed in July this year. 

However the council is yet to commit to reducing rubbish fees.

Organisational support director Marg Allan said the costs recovered by the carbon tax repeal might be used to compensate for other federal government cuts. 

“The repeal of the carbon tax will be considered as part of the mid-year budget review, along with other impacts such as the federal government’s decision to freeze indexation on financial assistance grants for three years,” she Marg Allan said.

"We estimate the impact on our budget from freezing indexation will be $1.84 million over the next three years."

The mid-year review will take place early next year.

Australia became the first country in the world to abolish a price on carbon, with the Senate passing the government’s repeal bills 39 votes to 32 in July.

After two weeks of negotiations, and several false starts, the Abbott government achieved its long-held ambition to axe the tax, to applause from government senators.

Speaking after the vote in the Senate, Mr Abbott rejoiced at the passage of the repeal bills, declaring "today the Parliament finally listened". 

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