Household compensation to mitigate the impact of the carbon price will start flowing to Australian families on Wednesday.

An estimated 1.6 million families receiving Family Tax Benefit Part A or B will have extra pocket money delivered to their bank accounts in the next fortnight.

Households receiving Part A of the allowance will receive up to $110 for each child and those receiving Part B up to $69.

Families Minister Jenny Macklin said the money will help families make ends meet.

From July 1, the government will make 500 of Australia’s biggest polluters pay an initial $23 for every tonne of carbon they put into the atmosphere.

This will be followed by a market-based emissions trading scheme in 2015.

The aim is to cut 160 million tonnes of carbon dioxide from the atmosphere by 2020.

Nine out of 10 households will receive tax cuts or compensation payments to counteract possible price increases for expenses such as electricity bills.

Source: skynews