Australia’s Qantas Airways said on Monday the carbon tax announced by the government on Sunday will have a likely cost impact of AUD$ 110 million to AUD$ 115 million (USD$ 118 million to USD$ 123 million) and it will pass on the full impact to customers.

It expects the price on a single domestic flight sector to rise by about AUD$ 3.50 in fiscal 2013.

Australia unveiled its most sweeping economic reform in decades on Sunday with a plan to tax carbon emissions from the nation’s worst polluters, reviving hopes of stronger global climate action with the largest emissions trade scheme outside Europe.

Prime Minister Julia Gillard said 500 companies including steel and aluminium manufacturers would pay a AUD$ 23 (USD$ 24.70) per tonne carbon tax from next year, rising by 2.5 percent a year, moving to a market-based trading scheme in 2015.