The stage three tax cuts, which were unveiled by the former government and reaffirmed under Prime Minister Anthony Albanese, are due to come into effect on July 1.
However, reports in the Sydney Morning Herald and the Age say the government is considering scaling back the tax package to provide greater financial relief for middle-income workers.
Although the government is yet to reach a final decision, the coalition has condemned the proposed changes with Shadow Treasurer Angus Taylor labelling it "the mother of all broken promises".
"This is something that the prime minister and treasurer have committed to over 100 times," he told Seven's Sunrise program on Tuesday.
Angus Taylor is condemning reports the slated stage three tax cuts could be scaled back. (Mick Tsikas/AAP PHOTOS)
"It's in the legislation and Labor voted for it and it's been to two elections - so this is not something you change."
Deputy Nationals Leader Bridget McKenzie also decried the proposition, saying those in the top tax bracket will lose more of their own money.
"It's absolutely shameful that the government is thinking of re-examining legislated tax cuts," she told Nine's Today Show.
"Giving Australians more of their own money back in their pockets to pay their mortgage - which has gone through the roof - the energy bills that they're all struggling with, is absolutely the right thing to do."
The news comes as Mr Albanese summoned Labor colleagues back to Canberra for a caucus meeting on Wednesday on cost-of-living relief measures.
While inflation has peaked, forecasts have shown it will still take more than a year for it to come back to the Reserve Bank's target band of between two and three per cent.
Mr Albanese said on Monday the government would look at advice on how to ease cost-of-living pressure without adding to persistent inflation.
"If we can find ways to put extra dollars in people's pockets, particularly those lower-middle income earners who are doing it tough, then we're prepared to do so," he said.
The stage three tax cuts, as legislated, would provide greater benefits to high earners by implementing a 30 per cent tax rate for anyone earning between $45,000 and $200,000.
As a result, the Greens have ramped up calls for the government to ditch the cuts, warning the measure would increase cost-of-living pressures.
Costings received by the party from the Parliamentary Budget Office showed the tax cuts would cost $300 million more in the next year, and $10 billion extra than forecast in the next decade.
In a letter sent to Treasurer Jim Chalmers, acting Greens leader Mehreen Faruqi said those earning between $50,000 and $75,000 would be contributing the most to government revenue, once the tax cuts and bracket creep were taken into account.
"The stage three tax cuts do not help those most struggling with the increased cost of living," Senator Faruqi said in the letter.
"It will lead to over $70 billion of additional debt with nothing productive to show for it."
10°C