THE Federal Government will reintroduce legislation advancing its $42 billion economic stimulus package this afternoon after it was rejected by the Senate, Prime Minister Kevin Rudd has told Parliament.
The Senate voted down the Government's legislation, implementing the package, after independent senator Nick Xenophon voted with the Coalition.

The Australian Greens and Family First's Steve Fielding voted with the Government, tying the vote at 35-35.

Mr Rudd said his Government would not be deterred from taking "whatever action is necessary" in the national economic interest.

"For those reasons I formally notify the house that later today legislation will be reintroduced to advance this nation's national economic interest at a time of global economic crisis," he said.

Mr Rudd highlighted the wide range of groups which supported the need for stimulus during this time of financial crisis, including the Reserve Bank of Australia, the International Monetary Fund and the Business Council of Australia.

"This crisis now affects Australia fundamentally," he said.
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Opposition Leader Malcolm Turnbull said the prime minister had treated the Parliament with "disingenuous contempt".

The Government refused to negotiate with the Opposition on a more balanced package, Mr Turnbull said, and that was why the vote failed.

"He (Rudd) has said there is no alternative to this proposal, and yet we all know ... not one of us is the repository of all wisdom on this or any other issue," Mr Turnbull told Parliament.

Instead Mr Rudd chose to present a package that would just saddle Australians with debt, Mr Turnbull said.