Clive Palmer has accused the Abbott Government of double crossing his senators
Clive Palmer has accused the Abbott Government of double crossing his senators Brett Wortman

Palmer to Abbott: You double crossed me

CLIVE Palmer has accused the Abbott Government of "double crossing" his Palmer United Party senators over a carbon tax repeal amendment to ensure savings are passed on to consumers.

Mr Palmer said the PUP senators had last night given the government the amendment to be circulated to Labor and the crossbenchers, to put in place huge penalties for companies that fail to pass on the savings.

The amendment was to update a previous amendment Mr Palmer said did not go far enough, as it was not binding on companies to make sure they passed any potential savings on.

He said the latest amendment, which PUP senators were preparing to vote on this morning, would have imposed a massive 250% penalty on any savings found by the consumer watchdog that wasn't passed on.

But the amendment, he claimed, never made it to the floor of Senate, where the chamber was preparing to vote on the previous change - unbeknownst to his senators.

Mr Palmer said he had to "run across to the Senate" to inform the senators that the amendment put up was out-of-date, and if the government was not prepared to support the new amendment, then the PUP would vote with Labor and The Greens against repealing the tax.

A vote is yet to go ahead, but debate continues for the fourth day over the bills to repeal the tax, after a late afternoon deal yesterday blew a further $1.5 billion hole in government budget savings for ditching an income tax cut.

Debate continues.