Big-ticket budget items at impasse as government chases crossbench support

Three of the Albanese government’s big-ticket items it would like to drive through the Senate in the final sitting fortnight before the May budget are at an impasse.

Energy Minister Chris Bowen. Picture: NCA NewsWire/Gary Ramage

Three of the Albanese government’s big-ticket items it would like to drive through the Senate in the final sitting fortnight before the May budget are at an impasse, with Energy Minister Chris Bowen attempting to wedge the Greens on the safeguard mechanism by warning of “another decade of climate wars”.

The government will prioritise the revamped safeguard mechanism, which applies to the 215 heaviest emitters in Australia and forces them to reduce emissions in line with net zero by 2050, but only the Jacqui Lambie Network – which holds two crucial Senate crossbench votes – has indicated support for the policy.

Mr Bowen said the reform was the first chance in more than a decade to implement “transformative climate action” towards net zero and had broad support across the economy and community.

“It’s now up to the Greens to decide if they want to vote with Peter Dutton for another decade of climate wars, just like they did in 2009. Or if they want to support these massive reforms that will reduce emissions by over 200 million tonnes,” Mr Bowen said.

The government’s Housing Australia Future Fund is also at a stalemate, and it is one or two votes short of winning enough support to push through the $15bn National Reconstruction Fund.

Independent ACT senator David Pocock is likely to support the NRF and the government ­already has the Greens’ support after it clinched a deal to prevent the fund from investing in coal, gas and native logging projects.

Without the Coalition’s support on the safeguard mechanism, NRF and housing fund, the government must win over the Greens and two more Senate crossbenchers to pass its agenda through parliament.

The referendum machinery bill, which modernises the provisions required to hold the voice referendum, is set to pass the Senate within days with the backing of the Greens, JLN and Senator Pocock, despite amendments being moved by most political parties.

Senator David Pocock. Picture: NCA NewsWire/Gary Ramage

Senator Tammy Tyrrell. Picture: NCA NewsWire/Martin Ollman

Special Minister of State Don Farrell urged the Coalition to “show some goodwill” and back the referendum machinery provisions but is refusing to give ground on Peter Dutton’s demand for public funding.

The Coalition will oppose the referendum machinery bill unless the government backflips and agrees to establish campaign entities for both sides of the debate and fund the Yes and No cases.

JLN senator Tammy Tyrrell, who with the Greens and Senator Pocock is pushing for the housing fund to build more than the proposed 30,000 social and affordable homes over five years, said she wanted an assurance 1200 of those homes would be quarantined for her state of Tasmania.

“The ball’s in the Minister’s (Julie Collins) court. I want to make sure Tassie gets their fair share,” she said. “And 1200 homes over five years is a pretty reasonable ask. Without it, I’m not sure how much this bill will actually do for my state.”