Prime Minister Julia Gillard has warned not every Australian will be better off financially from compensation measures to offset the impact of the federal government's carbon tax.
Ms Gillard said while most funds to be raised by the impost will be used for income tax cuts, pension increases and higher family payments, the government still had to balance its budget. 'Not everyone will be financially better off - there is no money tree,' she said in an address to the nation broadcast on the country's major television networks on Sunday evening.
The government on Sunday announced details of the tax, which will make about 500 big polluters pay an initial $23 for every tonne of carbon they put into the atmosphere. The tax, due to start on July 1, 2012, will rise by 2.5 per cent a year until the pricing mechanism shifts to a market-based emissions trading scheme three years later.
Also see the More Stories on Sky News - People's revolt looms on Australian carbon tax (The Australian)