Prime Minister Julia Gillard has introduced the Federal Government’s carbon tax legislation to Parliament, saying that the legislation will lead to reducing the country’s carbon production while stimulating the economy and creating jobs.


"The jobs of the future are clean energy jobs. Employment is projected to grow strongly with a carbon price," Ms Gillard told the Hose of Representatives.


The Federal Government has released projections that claim that up to 1.6 million jobs will created in the coming eight years, significantly more than would be created if no carbon tax was implemented.


Under the legislation proposed by the government, Australia’s top 500 polluting companies will pay $23 per tonne of carbon produced, which will raise an estimated $11 billion in revenue for the government in the first year of operation.


The Federal Government has allayed fears that the tax will lead to a blowout in household costs, saying that a significant percentage of the revenue raised will go towards compensation through tax cuts or welfare increases to offset higher utility costs.


Despite the Federal Opposition refusing to back the legislation, support from key independents and Greens will see it through the Lower House.


The 18 bills of the legislation will face a month of consideration, including an extra week of Senate debate, before a final vote is held on October 12.