The sun is seen behind smoke billowing from a chimney of a heating plant in Taiyuan, Shanxi province in this December 9, 2013 file photo.
The sun is seen behind smoke billowing from a chimney of a heating plant in Taiyuan, Shanxi province in this December 9, 2013 file photo. The Beijing municipal government has proposed new rules that will set tight restrictions on offsets in its carbon market, aiming to avoid the fate of schemes in other countries where a glut of offsets has undermined carbon prices. The capital is one of six Chinese cities and provinces that have launch CO2 trading markets to help the world's biggest-emitting nation slow its rapid growth in climate-changing greenhouse gas emissions. REUTERS/Stringer REUTERS/Stringer

The Australian government is hoping to repeal carbon tax by next week despite the chaos in the Senate. After further talks with the Palmer United Party, the government is preparing to bring back the bill to the lower house on July 14.

Another double dissolution trigger arose following the Palmer United Party's withdrawal of its support for carbon tax repeal at the last minute. The bill was again voted down in the Senate. Palmer had surprised the parliament after announcing with Al Gore that he was voting for carbon tax repeal in exchange for an emissions trading scheme.

In June, Labour and Greens parties had challenged Mr Abbott to a double dissolution election after the Senate has voted down a bill to scrap the Clean Energy Finance Corporation (CEFC), for the second time.

According to reports, the PUP senators had joined the Greens and Labour parties to vote against carbon tax repeal with 37 votes against 35.

Earlier, the Coalition has made a move to make the bill urgent which pushed the debate on July 10. Ahead of the Senate vote, PUP leader Clive Palmer told media that the party will not side with the government amidst an ongoing debate with amendments.

When the PUP proposed an amendment to the bill, it generated a "violent reaction" from the Abbott government which led to the party's withdrawal of support.

However, Environment Minister Greg Hunt said the government had agreed with the amendments, and to make changes on July 14 in the House of Representatives, where changes were allowed under the constitution.

According to Prime Minister Tony Abbott, removing the carbon tax is a "vital part" of the government's strategy for economic action. He believes that carbon tax is "bad for jobs", hurts families and "doesn't help the environment." Mr Abbott said each typical Australian household can save about $516 or UA$550 every year.

Reports said Mr Abbott intends to "work constructively" with the new Senate as major parts of his budget may be blocked by the opposition. Mr Abbott said he was reaching out to smoothen relationships with the Upper House.