The government's plans to repeal the carbon tax have been thrown into disarray, and the senate thrown into chaos, after Clive Palmer's PUP senators voted with Labor and the Greens to defeat to laws.
It's a major blow for the government, which had been counting on the Palmer United Party Senators to back the repeal as promised.
It means the government will have to go back to the House of Representatives and then send the bill back to the Senate for a vote.
No sooner had the government trumpeted that the carbon tax would be repealed before lunchtime, than Clive Palmer emerged, saying his senators would not the support the bill in its current form.
The Palmer United Party had an agreement with the government to support amendments that guarantee savings from the abolished tax are passed on to consumers and business.
But after supporting a government move to bring on a vote, Mr Palmer announced more changes to his party's demands.
Mr Palmer wants stricter deadlines enshrined in the laws, including a rule that companies pass on all savings before July 2015, or face a fine equivalent to 250 per cent of what they have saved.
He says the government wasn't happy with his decision.
"A violent reaction, ministers calling us, visiting our Senators and complaining and all our amendment did really was to guarantee and make it mandatory the savings from the carbon tax repeal by energy producers, gas producers, electricity producers, would be passed on down the line to consumers. We read this morning that Virgin and Qantas have said they are not going to pass those savings on to consumers. They are going to absorb them as extra profits. So we don't think that's a reasonable thing."
However, the government says the Mr Palmer's amendment was unconstitutional, because it would have been a money bill, which by definition cannot originate in the Senate.
Government leader in the Senate Eric Abetz says the government will be returning the legislation to the lower house next week where there'll be a vote on the PUP amendment.
"This is a technical issue that we can believe will be overcome by the re-introduction next week in the House of Representatives and the Government will seek to do everything it can to facilitate the passage of the repeal in a manner that will allow the Palmer United Party amendments to be moved in the House of Representatives and then come through to the Senate next week, so he that by the end of next week, can be removed for all time."
Mr Palmer is accusing the government of dishonesty, trying to trick his senators into voting for the old amendments.
"We had no indication from the Government they wouldn't support it. But with our old amendment which was prepared by the Government in good faith lying there, our senators would have thought it was a new amendment and voted accordingly.
Former Climate Change minister Senator Penny Wong says it is obvious that the government had arrogantly believed it could force the bills through the senate without having a proper discussion with the three PUP Senators.
She says it does appear the government was trying to trick the PUP Senators.
"Obviously the Palmer United Party might have been sold a pup*. Sorry. I had just say that once, just once. I promise I won't do it again. I just had to get that out once. Others might, but I just had to get that particular gag off my chest."
Greens Leader Christine Milne says she thinks that what's happening in the Senate indicates that the government is in trouble if it's relying on the PUP senators's support.
"It's hard to see how if this arrangement between the Prime Minister and the Palmer United Party is going to last when the Palmer United Party accuses the PM of double-dealing, and the Prime Minister claims to now support the Palmer United Party amendment, even though, nobody really understand, including the Government seems, of what the actual amendment will deliver."
The laws will be introduced into the House of Representatives next week, then returned to the senate.
However, if they are not passed next week Tony Abbott will have to wait until after the long winter parliamentary break, which starts next Thursday night, to get the laws through.
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