Australia will introduce legislation for a planned new carbon tax before the end of the year, setting the scene for a major test of Prime Minister Julia Gillard's minority Labor government.
If Gillard succeeds in winning lawmaker approval for a fixed price on carbon, effective from next year, it will be seen as a significant victory for her hamstrung administration. Failure to pass the bill would hand the momentum to the conservative Liberal-National opposition and could herald the downfall of the government.
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