Family First senator Bob Day has confirmed he will return to the Senate next month to support the government on industrial relations and the same-sex marriage plebiscite, despite announcing his resignation.
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With his housing construction empire in liquidation, Senator Day faces being expelled from Parliament if he is declared bankrupt, and last week announced he would resign.
Despite previously saying "would be untenable to stay in Parliament", the South Australian issued a statement on Friday to say he would return to Parliament on November 7 to support restoration of the Australian Building and Construction Commission and the government's registered organisations bill.
Senator Day said enabling legislation for the plebiscite and changes to tax rates for backpackers working in Australia were too important to miss.
He said a new investor had expressed interest in buying the Home Australia group of companies and was in contact with receivers McGrathNicol.
Combined debts for the companies total $36.8 million. A creditors' meeting for the company is planned for November 4.
"If new investment revives the company, if houses are being completed and trade contractors are being paid, then I may continue as a senator," he said.
"If not, my resignation will proceed and I will devote myself to assisting those affected by the group's closure."
Senator Day apologised to owners of the more than 200 unfinished homes and the large number of contractors caught up in the collapse.
He said Family First and South Australia needed representation in the Senate's final three sitting weeks of 2016.
"The votes are tight on the marriage plebiscite and ABCC, and I support both," he said.
"The backpacker tax must be fixed before the end of the sitting year, and I want to ensure the tax rate is satisfactory to farmers and the hospitality industry alike. I, with my office, am prepared for these debates."
Hanging on to his seat means Senator Day will continue to receive his $199,040 annual salary, or about $3800 a week before tax.
Senator Day's vote will be crucial for the government, with nine out of 11 crossbenchers needed to pass legislation.
He is understood to be delaying his resignation in order to block Family First's South Australian upper house member Robert Brokenshire from securing the federal seat, in favour of his former chief of staff Rikki Lambert.
Legal experts say he could face a rare High Court injunction preventing him from supporting the Turnbull government's bills.
