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THE Senate has passed Prime Minister Kevin Rudd's revised $42 billion stimulus package giving nearly nine million Australian families and workers cash bonuses of up to $900 each.

The original package was defeated yesterday when independent SA senator Nick Xenophon sided with the Coalition after the Government refused to bring forward $3.1 billion in funds for water buy-backs and irrigation projects in the Murray-Darling Basin.

Federal Treasurer Wayne Swan and Senator Xenophon this morning agreed to a package for the Murray-Darling Basin guaranteeing the Government's package would be approved by the Senate.

Senator Xenophon announced he would support the legislation in the Senate at 11.30am.

The Senate yesterday passed amendments to the original stimulus package to reduce the planned cash payments by $50. It began debating revised the legislation at 9am this morning.

The Greens yesterday successfully argued for a $50 reduction in the bonus payments to free up more than $400 million for other programs, including increases in pensions and payments for low income earners and the unemployed.

Single-income families will get a $950 payment and taxpayers earning less than $80,000 will now receive a cash bonus of $900, while people on incomes of between $80,000 and $90,000 will receive $600, and those earning between $90,000 and $100,000 will get a $250 bonus.

Those receiving Family Tax Benefit Part A with a child aged between four and 18 years will get a $950 back-to-school bonus.

More than 400,000 students and people returning to study will get a $950 training and learning bonus along with farmers receiving exceptional circumstances income support.

The original package was defeated yesterday when independent SA senator Nick Xenophon sided with the Coalition after the Government refused to bring forward $3.1 billion in funds for water buy-backs and irrigation projects in the Murray-Darling Basin.

The Government needs the support of the five Green Senators as well as Family First's Steve Fielding and Senator Xenophon to pass the legislation.