The federal government in Australia is to scrap the carbon tax and move to an emissions trading scheme.
The ABC reports Treasurer Chris Bowen is expected to give details about the plan on Sunday.
Labor initially planned to move from the carbon tax to an emissions trading scheme by July 2015, but a spokeswoman said Prime Minister Kevin Rudd had moved the timetable forward.
The fixed carbon price of A$24.15 per tonne will be removed next year in favour of a floating price, thought to be between $A6 - $A10 per tonne.
Mr Bowen said the Government will keep the carbon tax compensation package for families in place. He told Channel 10 there will be spending cuts in other areas to pay for the change.
Greens leader Christine Milne said the decision is "cowardly", while the Opposition said the public will not be easily fooled by a name change.
''Kevin Rudd ... is sending a strong signal that ... he will fast-track coal seam gas and continue to expand coal exports,'' Senator Milne told the ABC Insiders programme. "Kevin Rudd is a fake on the climate."
Opposition climate spokesman Greg Hunt said the public will not be easily fooled by a name change.
"The truth is you're changing the name. It's still going to be a carbon tax. It's just another Kevin Rudd con," he said.