Australia’s Senate on Friday passed a A$42bn ($27.4bn) economic stimulus package it had blocked the day before after frantic overnight negotiations won a vital extra vote allowing the government to over-ride opposition from conservative parties.

Independent South Australian senator Nick Xenophon switched sides after winning a commitment from Wayne Swan, Australia’s Treasurer, that the Labor government would commit almost A$1bn to help improve water flow in the ailing Murray-Darling river system.