Prime Minister Julia Gillard has announced details of her pricing scheme, with compensation for households and industry to help offset the impact of a $23 per tonne price which will be introduced on July 1 next year.

With just hours to go before the Federal Government reveals the full details of its tax, Opposition Leader Tony Abbott has maintained his attack on the scheme.

More details of the tax are trickling out as the Federal Government prepares to take the next step towards imposing its price.

Controversial climate change sceptic Lord Christopher Monckton has mocked Prime Minister Julia Gillard on the eve of the Government’s tax announcement, saying Australia will become a “third world banana monarchy” if it introduces the tax.

Prime Minister Julia Gillard has used her last official speech before the unveiling of the tax plan to assure Australian families they have nothing to fear.

Pensioners will be given an up-front increase to their payments as part of the Federal Government’s tax package.

There are three key approaches governments around the world are taking in a bid to lower emissions: taxes; emissions- schemes (ETS); and direct action.

Local shares ended the day on a high with the market up over 1 per cent.

Tasmanian independent Andrew Wilkie has promised his support to the pricing scheme, assuring passage of the Government’s legislation through Parliament.

In contrast to the Government’s price and market-based emissions scheme proposal, the Opposition’s ‘direct action’ plan does not charge industries for pollution.