Australian government promises compensation over fuel emission scheme
Updated
The Australian government's plans to reduce carbon emissions will include compensation for motorists and big polluting companies.
The federal government has released its discussion paper on ways to reduce Australia's greenhouse gas emissions.
Central to those plans is an emissions trading scheme.
About 1,000 businesses will need permits to pollute, but the government is proposing 20 per cent be allocated for free to the most affected companies.
The government isn't proposing agriculture be included in the scheme until 2015.
Petrol and transport costs will be in from the intended start date of 2010, but motorists will receive a cent for cent cut in the fuel excise for the first three years to compensate for rising petrol costs.
Overall the government is estimating a one off rise in the cost of living of about .9 per cent.
Pensions and other payments will increase to match the extra costs for low income earners.
Others will also get help, but the amount hasn't yet been set.
