Naomi Woodley reported this story on Friday, July 18, 2014 18:45:00

MARK COLVIN: The fate of flight MH-17 overshadowed a rare Friday sitting of Federal Parliament.



Parliamentarians have now begun their long winter break, but not before the Senate again thwarted the Government's bid to repeal the mining tax.



The Opposition, Greens and Palmer United Party insisted on keeping billions of dollars in associated spending measures, causing more budget headaches for the Government.



From Canberra, Naomi Woodley reports.



NAOMI WOODLEY: The Senate sat late last night to amend the Government's bills to repeal the mining tax. Labor, the Greens and the Palmer United Party combined to remove $9.6 billion of budget savings from the bill.



It was sent back to the House of Representatives this morning, where the Government used its numbers to put those savings measures back in.



POLITICIAN: In relation to the low income superannuation contribution, the income support bonus and the school kids bonus, having taken these to the election, the Government disagrees with all the amendments that were moved.



BRONWYN BISHOP: All in favour please say aye. To the contrary no.



(House members saying no)



BRONYWN BISHOP: I think the ayes have it, the ayes have it.



NAOMI WOODLEY: Labor frontbencher Jenny Macklin says the Opposition won't support the removal of the school kids bonus, a bonus payment for some welfare recipients, and a scheme to boost the superannuation of low income earners.



JENNY MACKLIN: Labor believes that minerals belong to its people and the benefits of those minerals in Australia should be shared. This bill of course also contains a number of other measures. It contains many cuts to ordinary families and low income Australians and that's another reason why Labor has moved amendments and will oppose this bill.



NAOMI WOODLEY: The Government argues it's always made it clear the payments would be repealed, along with the mining tax, so it sent the bill back to the Senate, along with a warning which appeared to be directed at the Palmer United Party Senators and their mining magnate founder.



ERIC ABETZ: A vote to insist on the Senate's amendments is a vote and will be a vote to keep the mining tax and the people of Australia will be watching very closely as to what we, as senators, do.



NAOMI WOODLEY: The Government Senate leader, Eric Abetz, urged the Senate not to insist on its amendments.



ERIC ABETZ: There are coal reserves all around the world, there are iron ore reserves all around the world. For our sector to remain competitive there has to be a competitive taxation regime.



NAOMI WOODLEY: But Labor, the Greens and almost all other crossbench Senators ignored his pleas, meaning the mining tax will stay for now. The next instalment is due to be paid on Monday.



Another key Government bill also suffered a similar fate.



SENATE PRESIDENT: There being 29 ayes and 34 noes, the question is resolved in the negative.



NAOMI WOODLEY: The Senate had also heavily amended the Government's Asset Recycling Bill - its plan to give incentive payments to the states and territories to sell off public infrastructure to pay for new projects.



The Greens leader Christine Milne says it all amounts to another signal for the Government not to ignore the Senate.



CHRISTINE MILNE: So what Joe Hockey and Tony Abbott and his frontbench have to learn is that they have to work with the Senate, not try and get around it, not try and impose their cruel agenda without the Parliament actually dealing with it.



NAOMI WOODLEY: The Government did get some legislation through before the winter break. It compromised with Labor to retain the overall 49 per cent restriction on foreign ownership in Qantas, but they have removed smaller caps on the amount of investment allowed from a foreign airline or individual.



MARK COLVIN: Naomi Woodley.