Australian carbon tax cash to flow to families: PM (AFP)

SYDNEY (AFP) – Prime Minister Julia Gillard Sunday moved to reassure Australians that her planned carbon tax would not hurt their finances, saying 90 percent of families would be compensated for higher costs.

Labor leader Gillard has been plunging in the polls since she announced plans for a carbon tax earlier this year, seemingly contradicting an election campaign statement there would be no such tax under her government.

She said Sunday she was determined to tackle climate change by placing a price on carbon pollution, which would be paid by the country's major industrial polluters, and using this money to assist families.

"So I can confirm today that nine out of 10 households will get assistance -- that's seven million Australians getting assistance," Gillard told Channel 10's "Meet The Press" programme.

"We want to help people through tax cuts, through changes to family payments, and of course through pension rises as well.

"And the vast majority of people we assist actually won't pay any price, because of the 0assistance that they receive."

The conservative opposition has attacked the proposal for a carbon tax, which is yet to be finalised, saying it will damage industry and cost jobs, at the same time as raising the daily living expenses of Australians.

Opposition leader Tony Abbott, who has accused Gillard of pushing for a tax for which she has no mandate, has vowed to repeal the carbon levy if elected.

Gillard again defended her decision to push for a fixed price on carbon, after initially ruling it out during the campaign, saying she still intended for it to develop into a cap and trade scheme within three to five years.

"I understand (that) people looking at that statement before the last election would say to themselves: 'She said no carbon tax then -- there's going to be a carbon tax now,'" Gillard said.

"But it's a stepping stone to getting to where I always wanted this nation to get to and what I talked about before the election campaign, which is an emissions trading scheme to tackle climate change."

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Hollywood star Blanchett under fire over carbon tax (AFP)

SYDNEY (AFP) – Hollywood A-lister Cate Blanchett found herself under fire for fronting a campaign promoting the government's planned carbon tax, with critics saying she is out of touch with ordinary Australians.

The wealthy Oscar winner features in a new advert, funded by a coalition of unions and green groups, urging Australians to "Say Yes" to a tax on carbon.

Australians are among the world's worst per capita carbon polluters and Labor Prime Minister Julia Gillard has proposed a carbon tax to be levied on major industrial polluters by July 1, 2012.

She then plans a full emissions trading scheme in three to five years.

But the proposals are not popular, with the conservative opposition saying a tax would damage the economy and drive up the cost of living by making energy far more expensive, bumping up electricity bills.

"$53 million Hollywood superstar tells Aussie families to pay up", the Sydney Sunday Telegraph blared on its front page, referring to how much Blanchett is worth.

"Cate Blanchett has proved she is just another morally vain Hollywood star trying to justify her great good fortune by preaching to the rest of us about climate change," the paper said in a comment piece.

The Australian Family Association said she was out of touch.

"It's nice to have a multi-millionaire who won't be impacted by it telling you how great it is. It's easy for her to advocate it, she's one of the people who can afford to pay it," the association said, according to the newspaper.

"There are people who have no comfort zone and no room to move."

Blanchett made no comment but her co-star in the advert, Australian actor Michael Caton, defended his role.

"I'm sure people will criticise me but I thought long and hard and I really believe in this, so I'm speaking up for it," he said.

Treasurer Wayne Swan said Blanchett was being unfairly targeted.

"I admire people who speak their views and Cate Blanchett, along with many others, has a strong view that Australia needs to price carbon," he said.

"It's the responsible thing to do for citizens to speak up."

The Climate Institute, an independent research organisation, also defended the actress.

"There is a serious scare campaign going on," spokesman John Connor told the ABC.

"So I am not surprised by some of the personal attacks. But what we're trying to do is focus on the policies and the issues and that a range of Australians are well behind this campaign."

Earlier this month, a national poll by The Australian newspaper showed 60 percent of voters were opposed to a carbon tax. Only 30 percent of voters supported the plan and 10 percent were undecided.

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