(CNN) -- Australia has passed a controversial new law which will
see the country's 500 most-polluting companies pay tax on their
carbon emissions. The Clean Energy Act was passed by 36 votes to
32 in the Australian Senate on Tuesday and will come into force
on July 1 next year. The legislation sees carbon taxed at a
fixed price of 23 Australian dollars ($23.7) per ton for three
years before moving to flexible pricing in 2015. In a statement
on the prime minister's official website, Julia Gillard
described the vote as "history-making" and "a major milestone in
Australia's efforts to cut carbon pollution and seize the
economic and job opportunities of the future." The legislation,
which passed through Australia's House of Representatives by 74
votes to 72 in October, will deliver cuts in carbon pollution of
at least 160 million tons a year in 2020, according to Gillard's
website. Nine out of 10 households will receive compensation to
offset the expected rises in energy bills caused by the
legislation, say the g