Isra-Mart srl : Garnaut to outline carbon tax revenue

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Federal government climate adviser Ross Garnaut will release additional papers at the end of the month detailing how much money is expected to be raised by Labor's carbon tax and how it should be spent.

Prof Garnaut announced on Friday he would release two "supplementary notes" on May 31 along with the final update to his landmark 2008 climate change review.

The first note will provide additional details on the likely revenue to be raised from the carbon tax, which the Gillard government wants to start in mid-2012, and how it should be spent over the subsequent 10 years.

"It will include further detail about the review's recommendations for the level of assistance to households through the tax and social security system, to business during the transition period and support for sequestration in the land sector and innovation," Prof Garnaut said in a statement.

The second note will flesh out recommended administrative arrangements "to maximise the stability and efficiency of the scheme and underpin community and business confidence".

Past modelling suggests an initial carbon price of $26 a tonne is needed if Australia is to reduce emissions by at least five per cent by 2020.

That price would bring in around $11.5 billion in 2012/13 alone.

Prof Garnaut has previously argued the entire carbon pricing regime should be overseen by a "carbon bank" which would act as an independent regulator much like the Reserve Bank of Australia.

Prime Minister Julia Gillard said this week she plans to release all the details of the carbon tax by July.