Isra-Mart srl: Julia Gillard finally admits it's a tax

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JULIA Gillard has been accused of breaking a second carbon tax promise by appearing to commit to an emissions trading scheme in 2015 regardless of what other countries do.

She was yesterday also forced to again clarify whether the carbon tax was a tax and not some other mechanism that worked "effectively" like a tax. Ms Gillard conceded it was, in fact, a tax.

Opposition Leader Tony Abbott has accused Ms Gillard of breaking yet another promise when she appeared to confirm that the carbon tax would only run for three years before the switch to an emissions trading scheme (ETS) in 2015.

Mr Abbott has argued an ETS would be open to corruption and the government could not guarantee that prices would not fluctuate wildly under a market system.

"The government's latest commitment - to move from a carbon tax to an emissions trading scheme in 2015, come what may - junks its February commitment only to transition to a carbon market after considering 'carbon pricing in key competitor economies' and 'the integrity and price' of units in the international carbon market," Mr Abbott said.

An alliance of industry groups has revealed it would mount a $10 million advertising campaign attacking the tax to counter the $12 million government ads which will attempt to explain it.