A vote to repeal a key part of the carbon tax has been narrowly defeated in the Australian Senate. The Bills were rejected by the Upper House 33-29.
The dismantling of the Labor-introduced regulations is a key political issue, after The Coalition framed the recent federal election as a referendum on the taxes.
During the election campaign Tony Abbott, then Opposition Leader, raised the possibility of a double-dissolution if his repeal Bills were knocked back by the Upper House, where the Government does not hold a majority.
The Senate rejected the Clean Energy Finance Bill for the first time in December last year. Three months have now passed, with the defeat creating a trigger for a dissolution of both houses of Parliament. A double-dissolution is seen as extremely unlikely, however.