Tony Abbott has outed Palmer United Party senator Dio Wang as a supporter of the government's higher education reforms as negotiations for votes inch forward.
A second version of the government's legislation is likely to be debated in the Senate mid-March.
However, it may face more changes as the government pursues the six crossbench votes it needs to have its legislation clear the upper house.
While Education Minister Christopher Pyne is tight-lipped about negotiations, the prime minister revealed the government hoped to win over PUP.
"Plainly Senator Dio Wang is very keen on our proposals," he said on Wednesday.
"Hopefully as the Palmer Party discusses this more and more, Senator Wang will be more and more influential."
Earlier, he said both PUP senators wanted deregulation but party leader Clive Palmer was holding them back.
Mr Palmer threw cold water on the prospect of changing its position, stating again that PUP was agreed to oppose deregulation.
Meanwhile, Mr Pyne has confirmed he and crossbenchers are discussing a proposal from HECS architect Bruce Chapman to reduce government subsidies to universities who raise their fees above a set level.
Professor Chapman says tapering subsidies creates a disincentive to hike fees too high.
He and colleague David Phillips worked with education department staff to develop the proposal.
If adopted, the plan could allay concerns about skyrocketing fees under the government's plan to deregulate the university sector.
Labor has derided it as a "great big new tax".
"This is a plan that would actually see fees skyrocket," said opposition higher education spokesman Kim Carr.
The Greens labelled it a fine for universities that overcharged.
But the government insists the measure isn't a fine and rejects suggestions it's a tax.
"In no way is the government considering taxes on universities," Assistant Education Minister Simon Birmingham told the Senate.
Senator Carr's "fantasy" was a gross misrepresentation of Prof Chapman's proposal, he said.
Even if the Chapman proposal was adopted, every university student would still attract some level of government subsidy and would be able to take out HECS loans to cover fees.
Share
