Businesses across Australia are facing increased costs after Labor’s flagship emissions policy passed Parliament.

The Safeguard Mechanism requires the top 215 polluters to reduce their emissions by 5% every year.

The Opposition is warning this will derail Australia’s $420 billion resources sector.

Federal MP for Hinkler- Keith Pitt- believes it may also impact farming, manufacturing and industries that use fertiliser and cement.

Mr Pitt says- “these businesses are in real trouble. They use legacy equipment.”

“Other countries like Japan have invested tens of billions of dollars in Australia. This destroys that reputation almost overnight.”