While disappointing, this isn't exactly unexpected. And the brute fact is that (while there are possible other prospects for progress this Parliamentary term), the votes to pass it just weren't there. Under those circumstances, it's better for the government to save its efforts for other causes which can be advanced. The Revolution will just have to wait for a little while.
on the plus side, I've heard that Larry Baldock's Marriage (Gender Clarification) Amendment Bill will not be going ahead either.