Prime Minister Julia Gillard is planning to put a price on carbon emissions from July 1, 2012.
A multi-party climate change committee will be presented with the proposal to introduce the price for three or four years, News Ltd reported on Saturday.
After 2015 or 2016 the regime will switch to an emissions trading scheme.
The federal government is set to demand that sensitive industries, such as the coal and electricity sectors, are compensated when the carbon price begins.
That could “infuriate” the Greens, federal Labor’s minority government partner, News Ltd said.
The compensation levels would be close to those proposed under former prime minister Kevin Rudd in late 2009.
Mr Rudd negotiated a carbon pollution reduction scheme with the federal coalition under its former leader Malcolm Turnbull, only to see it defeated three times in the Senate.
Current opposition leader Tony Abbott opposes an emissions trading scheme.
