It's been revealed that motorists will be exempt from paying about six cents a litre extra at the pump under an expected carbon price of $25 a tonne when the tax is introduced in July next year.
Under the plan, the discounted rate would apply to all at the pump, meaning motorists would not have to fill out forms for rebates or wait for tax concessions, News Ltd says.
While full details are yet to be revealed, it's understood big business could instead pay extra for petrol through a fuel-credit scheme.
The final deal between the Multi-Party Climate Change Committee, which includes the government, the Greens and two independents, is expected to be announced within days.
News Ltd says Prime Minister Julia Gillard will pledge that fuel will never be subject to the new tax, even when it becomes an emissions trading scheme in 2015.
Ms Gillard's pitch to win over middle Australia comes as rising fuel prices eat into household budgets, especially for those driving long distances to work.
Ms Gillard told News Ltd: "For the many, many Australians who drive long distances, maybe to work, maybe driving their kids on the weekend or going on holidays with the family, this will be a big help.
Meanwhile, a report in the Fairfax media says self-funded retirees will receive quarterly cash payments from the federal government to compensate for rises in household costs due to the planned carbon tax.
Fairfax says the measures would apply to single people earning up to $50,000 a year and couples earning $80,000 a year from their superannuation or other investments.
People on a government pension are expected to receive a 2.5 per cent increase to their regular payments, a rise of about $500 a year for singles and $760 for couples, with this also applying for the nation's low- to middle-income-earning retirees.
Minister for Climate Change and Energy Efficiency Greg Combet has promised that millions of households will be better off under the carbon price.
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