The Senate has voted down the Federal Government's legislation to uncap university fees, the second time the Coalition's higher education changes have been rejected.
Labor and the Greens were joined by several crossbench senators to defeat the bill 34 votes to 30.
Independent senators Nick Xenophon, Jacqui Lambie and Glenn Lazarus, Ricky Muir from the Motoring Enthusiasts Party, and Palmer United Party senator Dio Wang opposed the Higher Education and Research Reform Bill.
Family First senator Bob Day supported the bill, along with Liberal Democrat David Leyonhjelm.
Independent senator John Madigan also voted in favour of the bill but made it clear he wanted it to progress so that it could be amended.