Prime Minister Tony Abbott is ducking earlier threats to take Australians back to the polls as Labor and the Greens dare him to call an early election.
Abbott now has the trigger within reach for a double-dissolution election, following the second rejection by the Senate of his efforts to axethe profit-earning corporation set up by Labor to finance renewable energy projects.
The Clean Energy Finance Corporation is one of a package of climate change and environmental programmes the Government wants to dump, promoting instead its own "direct action" policy to reduce greenhouse gas emissions.
Faced with a list of potential roadblocks in the Upper House, Abbott had previously hinted heavily of a new election in which the entire Senate would be up for grabs, instead of just the half normally contested.
Governments are given the option when legislation is rejected twice in the Senate within three months.
Opposition parties are now calling Abbott's bluff.
"We are ready for an early election if Tony Abbott has the ticker for it," said Greens leader Christine Milne, whose control of the balance of power in the Senate will pass to mining magnate Clive Palmer's United Party when the new Upper House takes its seats on July 1.
Labor leader Bill Shorten said: "Tony Abbott is all talk. If he wants an election, he should bring it on."
It appears clear Abbott has no early intention of rising to the bait. Foreign Minister Julie Bishop said that "just because you are given a trigger it doesn't mean you have to pull it", and the Government intends pressing ahead with key legislation in Parliament next week.
Environment Minister Greg Hunt will reintroduce bills to axe the carbon and mining taxes - both of which have been previously rejected - as well as its bid to dump the Clean Energy Finance Corporation.
The legislation will be put to the new Senate, where carbon and mining tax repeal will have the probable support of Palmer's Senators.
But more problems lie ahead in the Upper House, including the "direct action" climate change policy, renewed indexation of the fuel excise and his "signature" paid parental leave scheme.
Taking the nation to a new election if the Upper House continues to frustrate his agenda would be a high-risk option for Abbott and one he is unlikely to take for the moment.
Despite his hopes of a better ride in the new Senate, polls continue to reflect deep anger and disillusionment with the Government and with Abbott personally.
