Muir, who represents the Australian Motoring Enthusiast Party in the country's upper house, had refused to back a motion repealing the carbon tax, even though he is aligned to the PUP, which wants to get rid of the tax.

He has proposed an amendment to the package to save Arena, after the government confirmed plans to scrap the organisation and its budget, leaving it for now with about A$900m in funding deals that have already been struck.

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