Retailers have welcomed the move by the Senate to abolish the Carbon Tax, with retail lobby groups saying the removal of the tax is a “victory for retailers, consumers and common sense”. 

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.

Russell Zimmerman, director executive of the Australian Retailers Association, said the cost impact of the tax was not only felt by business but also consumers who were hit with less disposable income as a result of the tax.

“We have given direct evidence to both the former and new governments over how much this tax impacted retailers,” Zimmermann said.

“Bakeries reported additional costs at over $20,000 per annum, and these are small independent businesses, let alone the costs to supermarkets and even the roll on effect and general energy costs hitting specialty retail such as clothing and fashion stores.

“There is no doubt this boost to retailer’s bottom lines and the pockets of consumers will assist the sector to overcome pressures from excessive costs and be a boost to current low consumer confidence.”