The vote was tied after ministers failed to reach a deal with Nick Xenophon, an independent senator from South Australia, who had demanded amendments to the bill to finance improvements to the ailing Murray- Darling river system.
The government said it would reintroduce the legislation immediately in the House of Representatives, the lower house of parliament, which has already voted in favour.
However, the group of bills that authorises the spending is not expected to return to the Senate until at least February 23, implying a minimum delay of nearly two weeks.
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