The state government says the carbon tax axe is a win for WA.
The repeal of the carbon tax is a win for West Australian households, which should enjoy eight per cent lower electricity prices and a four per cent fall in gas prices, the state government says.
Treasurer Mike Nahan said on Thursday the tax was ill-conceived, achieved very little and was a massive burden on the state's families and businesses.
Dr Nahan said it had been estimated that the tax directly cost WA government agencies about $60 million in 2014/15 due to higher prices for goods and services.
"I am delighted that the federal government has succeeded in scrapping this ineffective tax," he said.
Dr Nahan said he would immediately begin the process of making adjustments to tariffs.
He said he had also written to WA's metropolitan and regional electricity retailers, Synergy and Horizon Power, instructing them to pass on the full benefits of the carbon tax repeal to electricity consumers "as soon as practicable".
Premier Colin Barnett said he was pleased the carbon tax had been abolished and had slightly higher expectations than Dr Nahan for the impact on electricity prices, estimating they would drop by about nine per cent.
"It will take a little while for that to come into play but as soon as the utilities in this state are relieved of the carbon tax, the state government will ensure those savings are passed on to consumers," Mr Barnett said.