Axing the carbon taxes Now we mite be able to live again as the price of things may come down and now we have to get rid of the gst as then we can have a real life again and save money for a rainy day

He said the shelving of the tax to make way for an ETS with a floating price of around $6 a tonne would hit revenue by $3.8 billion over the forward estimates.

“We will make up the revenue with savings in other programs,” Mr Rudd said.

“This is carefully considered and we believe we have got the balance right."

Treasurer Chris Bowen outlined how the savings would be made which included a variety of climate schemes.

He said other savings would also be made including $1.8 billion from changes to fringe benefits tax arrangements relating to employer-provided cars.

“The world has moved on from when this system was introduced in 1986,” Mr Bowen said.

Public service efficiency dividends would also assist the savings task.

“These are not easy decisions to make, but they are the right decisions to make,” Mr Bowen said.

Treasury modelling shows that moving to a floating rate a year ahead of schedule, from July 1 next year, will ease the cost of living by $7.20 a week per family.

Mr Rudd said it was a stark contrast to Opposition Leader Tony Abbott’s climate scheme which would add $1200 a year to family budgets.