CANBERRA - Australia's opposition parties will back the government's carbon trade scheme, opposition leader Malcolm Turnbull was quoted as saying by local television on Tuesday, ensuring the laws should pass parliament this week.

The opposition decision ends a political deadlock and removes the threat of an early election and should see the scheme start on time in July 2011, covering 1,000 of Australia's biggest polluters.

(Reporting by James Grubel)