This weekend the Gillard Government plans to announce a price on pollution as the central element of a comprehensive policy to tackle climate change, cut pollution and drive the transformation of the Australian economy to a clean energy future.
After hearing a report on the discussions of the Multi-Party Climate Change Committee, Cabinet agreed tonight that sufficient progress had been made to allow an announcement date to be set for Sunday 10 July 2011.
Considerable common ground has been achieved in the MPCCC talks in recent weeks.
This reflects the genuine commitment of members of the MPCCC to tackle climate change to protect Australia's environment and support the economy.
While there will be additional discussions with the MPCCC this week, followed by further Cabinet consideration, it is expected that the remaining details will be finalised in these discussions ahead of Sunday's announcement.
The Gillard Government's priorities in designing the carbon price have been cutting pollution, protecting household budgets, and supporting jobs.
A carbon price is an important reform that will create incentives to lower Australia's carbon pollution at the lowest cost to the economy.
It will do this by putting a price tag on the pollution of fewer than 1,000 businesses.
More than half the revenue raised will be used for tax cuts and increased payments to households, which will be generous, fair and permanent and will keep pace with cost impacts from the carbon price in the future.
After announcing the policy the Government intends to introduce legislation to Parliament later this year.
This will be an opportunity for all MPs to decide whether they accept the scientific advice that climate change is real and whether they accept the economic advice that a market mechanism is the cheapest and most effective way of reducing pollution.
Arrangements for media will be released this evening. Arrangements for stakeholders will be announced in the coming days.