The Federal Government's bid to repeal the carbon tax has backfired, with the Senate rejecting the legislation after powerbroker Clive Palmer claimed he had been "double-crossed" by the Coalition.

The legislation, which had been expected to pass the Upper House today, was defeated 37 votes to 35 in a lunchtime vote.

The Palmer United Party wanted amendments to ensure that savings from the carbon tax repeal were passed onto consumers, but Mr Palmer claimed the Government had not honoured the agreement and directed his three senators to vote against it.

Look back over the action as it happened in Parliament in our live blog.