Carbon tax debate to drag on

The Abbott government is keen to repeal the carbon tax as quickly as possible, but must first consider amendments from key crossbench senators.

Senator Glenn Lazarus

Senator Glenn Lazarus. (AAP) Source: AAP

The fight to scrap the carbon tax drags on, with a number of amendments by key crossbench senators threatening to delay an outcome even further.

The Abbott government is determined for the repeal legislation to pass the Senate as quickly as possible, but the debate on Tuesday ended without a vote.

A day after being sworn in, Palmer United Palmer senators Glenn Lazarus and Jacqui Lambie used their first speeches in the upper house to back the repeal of Labor's climate tax scheme.

Both argued it was an impost on households and businesses, and repealing it would help struggling families with their day-to-day costs.

The three PUP senators and the Australian Motoring Enthusiast Party's Ricky Muir will deliver the government four of the six crucial votes it needs for the repeal package to clear the Senate.

Family First's Bob Day and Liberal Democrat David Leyonhjelm - also newly sworn-in senators - will round out the numbers the government needs.

But Senator Muir has thrown the government a curve ball by seeking to amend the repeal package to block a provision that cuts $435 million from the Australian Renewable Energy Agency (ARENA).

The agency has been flagged for abolition by the government, but Senator Muir would only require the support of three PUP senators to save it from the chopping block.

Labor and the Australian Greens also oppose scrapping ARENA, with the latter moving a virtually identical amendment to that of Senator Muir.

PUP will also move amendments as expected to ensure carbon tax savings are passed on, and that an emissions trading scheme is ready to go should Australia's trading partners adopt similar action.

The government was able to bring forward debate on the repeal package a week early with the support of PUP senators, but there is still some way to go.

Debate will continue on Wednesday, and a vote to repeal the carbon tax is expected this week.


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