The Gillard government has pruned to 294 the number of entities that it would collect the carbon tax beginning July 1. The list includes 34 local councils with landfill sites or produce natural gas.

It is down from the initial roster of 500 entities first listed by the government. Climate Change Minister Greg Combet said the number would continue to change.

"As some businesses may even be able to apply technology to reduce their greenhouse gas emissions so that they come off the list, they get underneath the threshold. Others might expand production and so end up above the threshold and come onto the list," ABC quoted Mr Combet.

Although there are local councils on the list, Parliamentary Secretary for Climate Change Mark Dreyfus said the councils would not have to pay the $23 per tonne carbon price for 12 months.

"What we're expecting for those 32 councils who are covered under the carbon price mechanism is that there will be some rate rises in the range of around 13 cents per household per week up to around 40 cents per household per week.... That's amply covered by the $10.10 household per week assistance that's coming from the federal government," Mr Dreyfus said.

He added that the Australian Competition and Consumer Commission will monitor business and people who misrepresent the impact of the carbon price and use the levy as a reason to jack up prices unnecessarily.

Among the local councils on the list are Bendigo, Rockingham, Darwin, Gold Coast, Geelong, Lake Macquarie and Launceston.

Greater Bendigo City estimated the carbon tax would cost the council at least $1.2 million which would mean a 1.7 per cent hike in council rates. Greater Geelong City budgeted $380,000 for its carbon tax liability for 2012-13.

RELATED STORIES