The political party of Australian billionaire Clive Palmer may be young and new, but it could possibly hold the swing vote in the upcoming federal election in November.

Mr Palmer threatened on Tuesday to block the carbon and mining taxes repeal initiative by the Abbott government if Environment Minister Greg Hunt would continue blackmailing the party.

"They are doing this really as a tactic - like the kids wanting to get their way. But if they are going to adopt a tactic like that, we're going to have to reconsider our position when it comes to the mining tax and carbon tax," Mr Palmer said.

He called the Coalition's Direct Action Climate Change policy as a token gesture only from the Abbott government and suggested that funding for the project be used instead on age pension which the coalition government plans to move permanently from 67 to 70.

Mr Hunt had stated that attempts by Opposition senators to block the climate change measures linked to the budget bill could result in a constitutional crisis. The plan would offer subsidies to companies that are carbon intensive to cut their emissions and has allocated $3.2 billion by 2018.

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