"The first step in the Parliament agreeing on Australia’s long-term approach to reducing emissions has to be repealing the carbon tax," BCA Chief Executive Jennifer Westacott said.

"The carbon tax is one of the highest in the world, and is imposing unnecessary costs on many businesses which cannot be passed on to consumers.

"With the establishment of the new Emissions Reduction Fund the economy cannot afford to have two conflicting policies in place for an extended time.

"The time has come for the Parliament to remove the unnecessary cost of the carbon tax and work with the government on a long-term approach to reducing emissions that is least cost, maintains the competitiveness of important industries and supports innovation and investment in lower emissions technologies," Ms Westacott said.