The Australian Labor Party (ALP) and the Australian Greens slammed the Abbott government's draft legislation for public consideration to repeal the carbon tax on Tuesday.

Prime Minister Tony Abbott confirmed at a press conference in Canberra on Tuesday afternoon that the coalition government will remove the carbon tax and end carbon tax on fuels used in shipping, rail and air transport and on synthetic greenhouse gases by the legislation.

The legislation will give the Australian Competition and Consumer Commission further powers to take action against businesses that engage in price exploitation following the repeal of the carbon tax.

The Labor Spokesperson for Climate Change and the Environment Mark Butler said in a statement on Tuesday that the Coalition's decision will throw the baby out with the bath water, and leave Australia with no credible policy on climate change.

"While the rest of the world is moving forward on combating climate change, Tony Abbott is trying to take Australia backwards, " he said.

"Around the world, more nations are taking strong action on climate change. We won't back down on acting on climate change -- or agree to a policy that increases carbon emissions while slugging the Australian taxpayer," Mark Butler added.

Meanwhile, the Australian Greens described Abbott's announcement as "a complete joke" in a statement.

"The true costs of not acting on global warming are the even more devastating fires, droughts and heat waves that are happening now and will worsen over the next half century," the Australian Greens Leader Christine Milne said. "In all of Tony Abbott's statements talking about repealing the price on pollution he never talks about the urgency of global warming." Endi

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