But Mr Rudd said 2.9 million low-income families would be fully compensated for the rises.
And 2.6 million of those – 90 per cent – would get a windfall, with compensation totalling 120 per cent of cost rises.
There would be cash assistance for 3.6 million middle-income households, half of which would be fully compensated for extra expenses.
Single pensioners would get an extra $455 a year as compensation and couples $686, Mr Rudd said.
The money would come from forcing industries to buy permits for the tonnage of carbon pollution they produced.