Prime Minister Julia Gillard announced a carbon price would start from July 1, 2012, with an emissions trading scheme coming on-stream three to five years later.
Mr Abbott said Ms Gillard had ruled out a carbon tax under a Labor government during last year's election campaign.
"Today's announcement is an utter betrayal of the Australian people," he told reporters in Canberra.
"If the Australian people could not trust the prime minister on this, they can't trust her on anything."
Mr Abbott said the carbon price - which has yet to be set - would push up the average family's power bill by $300 a year and fuel prices by 6.5 cents a litre.
"This will be paid every day by every Australian," he said.
Mr Abbott vowed to fight the scheme "every second of every minute of every day of every week of every month".
"I think there will be a people's revolt against this carbon tax," he said.
The decision showed Australian Greens leader Bob Brown was heading the minority government, Mr Abbott said.
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