The fate of the 1.8 billion dollar levy is in the hands of key independent Senator Nick Xenophon who wants recovery funding tied to state and territory disaster insurance.
Parliament will debate the levy, part of the government's 5.6 billion dollar reconstruction package. when it returns this week.
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Its passage through the lower house is guaranteed by the support of crossbenchers who forced a back down on proposed cuts to solar energy, affordable housing and education.
But it still needs the support of Senator Xenophon who's concerned taxpayers are footing 75 per cent of the damage bill from the summer floods and cyclone Yasi to get it through the upper house, which doesn't sit until the following week.
