Financial planners will be required to reveal their earnings from customers when Labor and the crossbenches combine this week to vote down Tony Abbott's weakened financial planning laws but the government will finally get its way on the carbon tax.
Mr Abbott has now secured the parliamentary majority needed to scrap the carbon tax with a vote to end the impost backdated to July 1, due to be taken in the Senate on Tuesday.
The Palmer United Party will provide the additional numbers to see the repeal bills pass through the Senate, having cleared the House of Representatives on Monday following last week's surprise collapse of the majority.
Mr Palmer told a Canberra press conference late Monday afternoon that his PUP grouping, including Australian Motoring Enthusiast senator Ricky Muir, had resolved to back the repeal, making its demise a formality.
He said he was satisfied that the PUP had salvaged several important features of the previous government's effort to address emissions including the Australian Renewable Energy Agency, but claimed the carbon tax itself had been set far too high and had been out of step with the rest of the world.
But Mr Palmer has pulled the rug from the government on another incendiary issue - the Future of Financial Advice laws.
The PUP leader said his party was not negotiating with the government to reach a compromise on the financial laws and would simply not be approving the regulations as tabled.
A government attempt to circumvent an unco-operative Senate by watering down tough consumer protections for investors now appears doomed.
The issue has divided the financial and political communities with banks leaning on the Coalition government to weaken Labor's laws.
Labor has argued its FoFA reforms were aimed at stopping the kind of fraud that ruined the retirement plans of investors who sought the advice of the Commonwealth Bank's financial services arm and lost their life savings.
Finance Minister Mathias Cormann had hoped to have the changes, which among other things removed a specific requirement for planners to always act in the best interests of clients, accepted by the Senate this week.
Labor's scheme meant that, as of July 1, bank tellers were prohibited from receiving commissions for recommending financial products.
The government's changes would have allowed commissions to continue, albeit in limited circumstances.
But Mr Palmer has now scuttled that hope, announcing on Monday that his party was not in negotiations with the government and would instead vote with Labor and the Greens to keep current FoFA laws in place.
Peter Martin - Page 17