Treasurer Wayne Swan says around 98 per cent of Australian households earning up to $150,000 a year will receive some assistance for the carbon tax, new modelling shows.
Labor's price on carbon emissions by the nation's biggest polluters will begin in seven days on July 1.
"Today I can share with you some new Treasury analysis that shows over 98 per cent of families with incomes up to $150,000 will receive assistance, with around three-quarters being covered for at least the full average price impact of the carbon price," Mr Swan said in his weekly economic note.
"In fact just over half of families with incomes up to $150,000 will get a buffer of at least 20 per cent over the expected price impact."
The federal government's carbon tax starts with a $23-a-tonne fixed price before transforming to an emissions trading scheme with a floating price in 2015.
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Revenue from the carbon tax will provide compensation to most Australian households and trade-exposed industries.
Mr Swan said the "fearmongering" about the impact of the carbon tax on the Australian economy would continue.
"But slowly, as each day passes, those claims will ring more and more hollow," he said.
"The reality is that price rises will be modest, households will be looked after, trade-exposed industries will be assisted, jobs will be created, and our economy will continue to grow strongly."
