Set to kick off on July 1 next year

Set to kick off on July 1 next year, the tax will rise by 2.5 per cent a year until the pricing mechanism shifts to a market-based emissions trading scheme in 2015.

To compensate households for price increases, nine out of 10 will get tax cuts or payment rises.
"For five million households this will fully meet your average extra costs," Ms Gillard said in an address to the nation on Sunday evening.

However, she warned that not every Australian will be better off.
"There is no money tree ... the budget has to add up," she said. "But I want people who need help most to get the help they need."
The government says more than half the revenue raised will go to helping households meet price rises of $9.90 a week on average under the initial price.

Electricity prices are predicted to rise on average by about $3.30 a week, gas by $1.50 and food by less than $1 under the policy.

Average assistance will come to $10.10, the government says.
Four million households will receive assistance that exceeds cost increases, leaving them better off, while two-thirds of households will get enough compensation to cover the average price rises.

About eight million households will receive some assistance, while one in 10 will be left out.

Mr Abbott said compensation will not keep up with price rises.
"The prime minister says most families will be compensated, but you can't compensate people who lose their jobs and the compensation won't keep pace as the tax goes up and up," Mr Abbott said in his address to the nation on Sunday.