The Government's mining tax repeal legislation will return to the House of Representatives after passing in the Senate late on Thursday with several amendments.

The Senate voted to get rid of the mining tax but is insisting the Government keep $10 billion worth of low-income support measures, including the SchoolKids Bonus.

The final vote came just before the Senate was due to rise for the evening, passing with 36 votes in favour and 30 against.

Members of the Opposition, the Greens and crossbenchers combined to preserve many of the spending initiatives associated with the tax.

Palmer United Party Senator Jacquie Lambie says she does not want the Government taking assistance away from people who are doing it tough.

"We are providing Australia with a win win situation," she said.

The amended bill now returns to the Lower House, but Finance Minister Mathias Cormann has indicated the Government will not accept the changes.

"This amendment before the chamber has a cost of $3.6 billion over the forward estimates," Senator Cormann said.

He says if Senators insist on the amendments, the mining tax will stay in place.

"We can't scrap the mining tax without also scrapping the unfunded promises the previous government attached to it," Senator Cormann said.

If the mining tax is not scrapped today, affected companies will have to pay another instalment next week.

Mining tax repeal progress follows Government win on carbon tax

The decision comes after the Government on Thursday fulfilled another key election promise to repeal the carbon tax.

The final vote to scrap the carbon tax was won by the Coalition 39 to 32, with the micro-party senators, including those from the Palmer United Party (PUP), voting with the Government.

It was the Government's third attempt to repeal the tax since introducing the legislation last November.

Prime Minister Tony Abbott has campaigned for years to rid Australia of a carbon pricing scheme, arguing the tax is "toxic" and has been hurting ordinary people.

On ABC's 7.30, Mr Abbott said the end of the carbon tax will boost confidence - but would not put a figure on the resulting economic growth.

"I certainly think it's good for confidence when governments get a very significant part of program through the Senate, particularly after all of the sound and fury that we've seen from the Labor Party in the last few months," he said.

Environment Minister Greg Hunt told ABC's Lateline there will not be a vacuum in climate change policy now the carbon tax is gone.

Space to play or pause, M to mute, left and right arrows to seek, up and down arrows for volume. Watch Duration: 16 minutes 29 seconds 16 m Incentive scheme is better than a tax to reduce emissions ( Tony Jones )

"There shouldn't be a vacuum because we have the carbon farming initiative legislation ready to go," he said, referring to legislation introduced by Labor to allow farmers to earn carbon credits by storing carbon or reducing greenhouse gas emissions.

"I would find it more than passing strange if the ALP and the Greens were to say we don't want to support indigenous land management activities."

Mr Hunt has urged Labor and the Greens to get behind the Government's Direct Action plan, saying it offers the best chance of tackling climate change.

The Opposition, Greens and the PUP have indicated they will oppose the legislation when it comes to the Senate.

But Mr Hunt is hoping for a change of heart and wants Labor leader Bill Shorten to come on board.

"[Bill Shorten] should let us put in place our scheme and give Australians the opportunity and if they, having seen it operate, don't believe it works then take [it] to the election,"

When asked whether emissions would rise if the Government's climate change policy is not supported, Mr Hunt said: "I'm just not accepting the option of failure."

"We never accept the option of failure on this and it pays to be determined."