Fresh from a political win restoring the building watchdog, Malcom Turnbull insists he'll persist with negotiations for unpopular budget savings.
The government's latest omnibus bill, which ties welfare cuts to an overhaul of childcare fee subsidies and quarantining net budget savings for the national disability insurance scheme, appears dead in the water after Senate cross benchers gave it the thumbs down.
The government might also be forced to ditch legislation for other savings - labelled "zombie measures" - stymied by the upper house.
The prime minister talked up his team's powers of persuasion on Thursday night ahead of his departure to New Zealand for an official visit.
"Over the last six months we have got more legislation through this Senate... than we did in the three years of the previous parliament, despite having fewer seats in the House and fewer seats in the Senate." Mr Turnbull told Sky New Business.
"What I am doing and my team are doing is focusing on constructive negotiation... we've had a fair bit of success with that and some disappointment that's true."
He declined to get into hypothetical discussions about what might happen if the government can't get its savings measures passed.
Mr Turnbull pointed to the government's success on Wednesday passing tinkered laws that restored the building industry watchdog, a feat many doubted would happen.
Treasurer Scott Morrison has left the door slightly ajar on the prospects of a tax rise saying the "the menu of options is well known."
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