Australia's Prime Minister Julia Gillard has unveiled full details of her carbon pricing scheme, with compensation for households and industry to help offset the impact of a $23 per tonne carbon price from 1 July next year.
The plan will provide $9.2 billion over three years in support for industry reports the ABC.
Ms Gillard says the tax will reduce Australia's carbon footprint by 160 million tonnes by 2020 - the equivalent of taking 45 million cars off the road.
A raft of assistance measures to households will include a rise in the tax free threshold, extra payments for pensioners and families with children and a guarantee that no one will pay more income tax.
The government says 4 million households will be better off after compensation, 6 million will be no worse off and 8 million will receive partial compensation for the price rises.
Treasurer Wayne Swan says average households will pay an extra $9.90 per week while average assistance will be $10.10 per week.
As expected, around 500 of the highest polluting businesses will pay the carbon price - which will increase by 2.5% above inflation until 1 July 2015 when a market-based emissions trading scheme will kick in.
While fuel is exempt for individual motorists and small business, diesel for heavy vehicles like semi-trailers will be paying the carbon price from 2014, after a two-year moratorium.
Agriculture, forestry and land will be excluded from the levy.
Steelmakers, coal mines and electricity generators will receive compensation to ensure they stay in business.
