Busy week ahead for Abbott as vote nears

Australian Prime Minister Tony Abbott will be forced to negotiate with the eclectic crossbench that now holds sway in the Upper House. Photo / AP

Prime Minister Tony Abbott faces two major challenges this week - the first, a wilful and unpredictable new Senate, the second, a delicate diplomatic balancing act as he moves to strengthen military and trade ties with Japan.

In the Upper House he is almost certain to win his first resounding victory with what appears to be sufficient crossbench support to dump Labor's carbon tax - although a vote has been delayed until next week.

However, he still faces the task of gaining enough votes to push through billions of dollars worth of bills proposed in his unpopular Budget.

Public anger was demonstrated in capital cities at the weekend, when thousands rallied to protest cuts to health, education and welfare.

Some new senators have indicated they similarly oppose key measures.

Abbott will be forced to negotiate with the eclectic crossbench that now holds sway in the Upper House. He needs to win over six to counter any combined vote by Labor and the Greens.

The Government will take heart from repeal of the carbon tax, a central theme of Abbott's campaign for last year's election and his top priority for the new Senate. Until yesterday, when the new Senators took their seats, repeal had been blocked by Labor and the Greens. The Government wants a fast vote, putting it as the Senate's first order of business. But senators voted to delay the vote until a committee report is tabled next Monday.

It has the support of mining magnate Clive Palmer's United Party which, with its alliance with Motoring Enthusiasts senator Ricky Muir, now holds the effective balance of power.

Palmer agreed to support repeal on the conditions that savings are passed to consumers under law, and that three key climate change bodies are saved from the Government axe.

PUP will also introduce framework legislation for a new emissions trading scheme, setting the carbon price at zero, until Australia's major trading partners introduce similar schemes. The Government's "direct action" plan to reduce emissions at this stage faces likely defeat, which would leave Australia without a climate change strategy.

Cuts and belt-tightening facing schools, pensioners, the unemployed, the disabled and health services have yet to win sufficient Senate support.

Meanwhile, Abbott will be distracted by the visit of Japanese Prime Minister Shinzo Abe, who flew into Canberra from New Zealand last night with a high-powered business delegation to boost defence, trade and investment ties.

Abe will become the first Japanese leader to address the Australian Parliament today when he appears at a special joint sitting of both Houses. He and Abbott will also formally sign a free trade agreement sealed in Tokyo in April, and complete a defence technology agreement.

Abbott has been working hard to tighten the bonds, which also link the two in the broader strategic relationship with the United States.

Shortly after winning power he described Japan as "Australia's best friend in Asia". In April the existing strategic partnership was upgraded to a "special relationship" and last month the two countries agree to further boost military co-operation.