Prime Minister Tony Abbott has released draft legislation to repeal the Carbon Tax, including the abolishment of the Climate Change Authority, Clean Energy Act, and other measures designed to combat pollution.

Australia's carbon pricing mechanism has been considered conservative, or at least equal, in comparison with those imposed by many other nations. Now the Coalition Government is seeking to modify the arrangements in favour of a cheaper option with reduced environmental obligations.

The Prime Minister announced the beginning of the consultation period with the release of the draft on Tuesday afternoon, condemning the federal Opposition for its continued support of the carbon pricing mechanism.

If passed, a number of current laws - which have been enacted to limit harmful emissions, create renewable energy infrastructure and contribute to similar global efforts – will be dissolved.

The Government is seeking to remove overarching Clean Energy Act, which established a price on CO2 and the measures to impose it on industrial and agricultural sectors.

In his announcement, PM Tony Abbott used figures based on a fixed carbon price to suggest the new measures would save Australian households around $550 per year. This did not factor the previous Government's move to switch the carbon tax to an emission trading scheme from mid-2014, which would have adjusted the price on carbon to a considerably lower level. It is unclear specifically which measures will be taken to maintain a legal commitment to reducing carbon emissions by 5 per cent by 2020, as defined by our agreement to the Kyoto Protocol.

Some speculators have claimed the Federal Government will bring in a system similar to the one planned by the previous government to come into effect from July 1 2014. That scenario would see an emissions trading scheme of some kind imposed, possibly wherein companies would be paid (by selling 'abatements') to emit less than their usual amount of pollution, and penalised for emitting more. There has been no official word on the specifics of the replacement Direct Action Plan – though the Government it is working on one.

The draft legislation calls for the abolishment of the Climate Change Authority (CCA), which was established to offer independent advice on climate change, pollution emissions and related pricing schemes. Under the planned laws all of the CCA's assets, liabilities, lands, projects and records will be absorbed into the Department of Environment.

The CCA is currently undertaking its review of the prices and caps on carbon emissions, it has a scheduled meeting with the Prime Minister to discuss the rates on July 1 2014, with existing laws mandating that if a price cannot be agreed upon then a mandatory target for a ten per cent reduction in carbon emissions to 2020 will be imposed.

Other plans include changes that would abolish the Jobs and Competitiveness Program, tariffs for aviation fuel, agricultural incentives, the Energy Security Fund and the Steel Transformation Plan.

Some insiders say there are two paths the Prime Minister could take to have Bills and Acts repealed and amended; either try to pass them now through the Senate, where The Greens hold the balance of power until July 1 2014 – or wait until after that date and the new Senate is sworn in, whose eclectic mix of members may be more willing to be swayed.

The draft legislation is available for consultation and will take submissions until the beginning of November 2013.