The federal government has suffered its first major defeat in the Senate, with the Greens and Coalition uniting to reject Labor's centrepiece housing policy.

Key points:

  • If the Senate rejects a bill twice, the government gains the ability to call an early election
  • The Greens want National Cabinet to impose rent freezes in return for their support of the housing bill
  • Tasmanian crossbencher Tammy Tyrrell slammed the Greens for deferring the vote