The federal government has yet to decide on a definite carbon price level despite the new review issued on Thursday by Climate Change chief adviser Professor Ross Garnaut that calls for a maximum tax imposition of $30 per tonne produced.

The price issue, according to Climate Change Minister Greg Combet, should be decided by the second half of 2011, which will impose a levy on Australia's air polluters.

Combet said that the suggestions contained in the updated review of Prof Garnaut would surely be utilised by sectors contributing, discussing and finalising the eventual form of Australia's carbon tax measures.

Yet he clarified that Prime Minister Julia Gillard has yet to close her options on matters about the climate change issues, more so in determining the actual carbon price that the government would slap on polluters.

More work needs to be done by the government and all the sectors involve in formulating the climate change policy, Combet said, giving assurance at the same time that "the government has objectives by the middle of the year we would have made substantial progress on all these matters."

Ms Gillard wants to earmark the funds to be generated by the carbon tax on energy subsidies for lower income households, labour support initiatives and in addressing the climate change issue and its attending problems.

On the other hand, Prof Garnaut's review carries proposal that would reserve 50 percent of the carbon tax revenue to filling the void of government tax cuts and increasing the coffers of welfare benefits.

Combet stressed that basing on the substance of the new report issued by Prof Garnaut, Australia would be hardly left behind on its carbon tax measures, which he said "would require the largest producers in our economy have a price tag on pollution and to purchase a permit for every tonne of pollution they produce."