Lower dollar to fund tax's end A forecast boost to tax revenue from the lower dollar and cuts to industry assistance will be used to fund an early end to the carbon tax, expected to slash electricity prices by up to 7 per cent. Australia will move from the present fixed carbon price of $24.15 a tonne to the floating European price, at present about $6 a tonne, on July 1, 2014 - one year earlier than previously planned. Treasury modelling shows the early move would be worth $380 to a single-income couple with two children earning $75,000 per year. Looking for billions: Treasurer Chris Bowen says consumer compensation will not change. A dual-income couple earning $100,000 would save $420. Pensioner couples would save up to $180. The early switch will cost the budget $4 billion to $5 billion in 2014-15. Treasurer Chris Bowen said on Sunday that the consumer compensation introduced with the tax would remain unchanged. At a news conference expected on Tuesday, he will outline where the government will find the billions to fund the early move, with carbon tax compensation for business likely to be one of the targets. Prime Minister Kevin Rudd stressed on Sunday that the package would be "budget neutral." Much of the shortfall will be made up by improved budget forecasts flowing from the lower dollar. In May the budget assumed an exchange rate of US103¢. Since then, the Australian dollar has plummeted to less than US92¢, a level that, if sustained, would mean higher company profits and greater company tax payments. Treasury secretary Martin Parkinson told an economists conference in May that "a cut of 5¢ or 6¢ on the US dollar exchange rate probably boosts real gross domestic product by about a quarter of a percentage point over a year." This suggests Treasury might lift its economic growth forecast by half a percentage point, boosting its revenue forecast by about $3 billion a year. Mr Bowen is also likely to factor in the increased company tax take that would flow from a lower carbon price. Calculations by the Australian Industry Group suggest an early move to the much lower European carbon price would boost corporate tax payments by $800 million as firms that have been unable to pass on the carbon tax find themselves with higher profits. Previously considered budget savings include a 25 per cent rise in tobacco excise, raising an extra $5 billion over four years, and taxing the alcohol in wine at the same rate as draught beer, raising $6 billion over four years. Australian Industry Group chief executive Innes Willox said the decision to scrap the carbon tax early would cut business costs while still allowing the government to meet the emissions target endorsed by both major parties. Greens leader Christine Milne said the move was "backflipping and cowardice," while Opposition Leader Tony Abbott said the switch was a "another Kevin con job."