Election 2013 - KEVIN Rudd has announced he will axe the carbon tax

KEVIN Rudd has announced he will axe the carbon tax next July, saving families an average of $380 a year.

The Prime Minister made the announcement this morning in Townsville.

``Today we've taken the decision to terminate the carbon tax,'' said Mr Rudd.

``We've had extensive consultation in cabinet for a number of weeks over these issues.

``This is modest relief but it is real.''