The Prime Minister says the Government is changing its plan for the price on carbon, shifting the country to an Emission Trading Scheme earlier than planned.

Reports over the weekend said changing to an emissions trading scheme (ETS) could begin in July 2014, and would see the current fixed tax dumped in favour of a floating price.

The current price is static at $24.15 per tonne; a floating price could reportedly put the value of carbon emissions at around $5.90 per tonne.

"The government is moving in this direction because a floating price takes cost-of-living pressures off Australian families and still protects the environment and acts on climate change," Mr Rudd said, “we have still got a fair bit of budget work to do because this has to be a budget-neutral undertaking.”

The Australian Greens have called the move cowardly, saying the PM is selling out our environmental future for a few pre-election brownie points. Some chartered accountants say it is a good way to encourage sustainable practices, coal miners want the entire scheme scrapped.

The Government has moved to assure industry did not bear the brunt of the cost difference, Treasurer Chris Bowen saying; “There is a substantial impact on the budget of doing this, of course there is, and it is several billion dollars, but we will be financing that in a fiscally responsible way... we announced an industry assistance plan when we announced the original carbon price... of course that will be calibrated to match new arrangements."

Queensland Premier Campbell Newman called for the Prime Minister to also dump the renewable energy target to reduce household power bills.