The Australian Retailers Association (ARA) has welcomed the abolition of the carbon tax, which was repealed after being passed by the Senate 39 to 32.

With the support of the Palmer United Party senators and Motoring Enthusiast Party senator Ricky Muir, the Government passed the legislation to repeal the tax on its third attempt since the election.

ARA — which campaigned against the tax — thanked the Government for the move, calling it a “a victory for retailers, consumers and common sense.”

ARA Executive Director Russell Zimmerman 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.

“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."

Zimmerman predicts this will lead to positive results for the retail sector and increase consumer confidence.

“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,” he said.