MARKET INSIDER: CPM repeal rejected, double dissolution trigger likely

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The federal government’s legislative package to repeal the carbon tax today returned to the Australian Parliament, with the Senate rejecting the Clean Energy (Carbon Tax Repeal) Bill at a third reading (33-29).

We anticipate that the bill will return to the lower house prior to the end of June following the requisite three month deferral.

Environment Minister Greg Hunt has indicated that the bill will return to the Senate after July 1, in the special sitting of the new Senate from July 7-17. As such the final outcome of the bill will be determined by the new Senate, with the outcome of the April 5 Western Australia Senate re-election to settle the final shape of the incoming balance of power.

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