How will the carbon tax affect households?
The federal government has said millions of Australian households will be compensated for the proposed carbon tax.
It says pensioners as well as low and middle income earners would receive compensation through the tax and transfer system, but only for the first year "and over a period of years."
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Although no starting price for the carbon tax has been announced, climate change adviser Professor Ross Garnaut has recommended an amount of between $20 and $30 per tonne of pollution.
Will households be compensated?
The federal government has promised that over 50 per cent of revenue from the carbon price would be used for the compensation.
Climate Change Minister Greg Combet says that by providing this assistance, the government will not remove the incentive for households to become more energy efficient.
The proposed carbon price aims for a behavioural change primarily at the industrial level, targeting the organisations that emit large amounts of pollution.
Which industries will the tax affect?
The carbon tax will put a price on every tonne of pollution that is produced, covering industrial processes and fugitive emissions from gas and coal exports.
This means exporters and manufacturers would have to buy permits for their emissions.
Mr Combet says the less than 1000 companies which make up the largest polluters in Australia's economy would have to pay for each tonne of pollution they emit.
The agricultural sector, which produces 15 per cent of total emissions, would be excluded.
When will more details about the carbon tax be released?
The government says it is still designing its carbon price mechanism, set to be in place by July 2012.
Mr Combet says he aims to finalise the detailed design of the carbon price mechanism in time to introduce legislation into parliament in the third quarter of this year.
