Labor has failed to pass a guillotine motion as Prime Minister Anthony Albanese seeks to pass more than 30 bills on the final parliamentary sitting day of the year.

A bid to establish a new national environment watchdog will be punted into next year, after Anthony Albanese rode roughshod over Tanya Plibersek’s attempts to negotiate a deal with the Greens.

After an intense day on Tuesday of last-minute negotiations and lobbying by environmental and mining groups in which a deal was said to have "come close", the government has now shelved the talks.

Sky News Political Editor Andrew Clennell has revealed Prime Minister Anthony Albanese has been “feverishly” calling crossbenchers to try and reach a deal on key legislation.