Tax cuts of up to $1080 are close to being locked in, despite Pauline Hanson saying she will not support the full $158 billion package as it stands.
Conservative Party leader Cory Bernardi supports the Coalition's full package of tax reforms and has even urged Treasurer Josh Frydenberg to cut taxes further.
The Courier Mail reports, the Morrison Government is stepping up its talks with crossbench Senators ahead of putting the full tax plan to the Parliament next month.
Centre Alliance Senator Stirling Griff said a plan to bring down power and gas prices would be "mandatory" to secure their key votes in the Senate for the third stage of the tax cuts.
"We need the Government to properly take action on the fact that energy companies are fleecing consumers and business ," he said. Senator Griff said they were not yet calling for the Bill to be split, which would allow the immediate offset of up to $1080 to be passed, saying they were considering the later stages of the plan to raise tax thresholds in 2022 and 2024.
If an agreement could be reached with Centre Alliance, only the vote of returned Senator Jacqui Lambie would be needed to get the tax relief through.
Senator Hanson has warned she will not support the full package without a commitment to build at least one new coal-fired power station, while she has also said she wants a royal commission into family law and more water security . "The Government can use delaying tactics like calling for feasibility studies all they like, but … how feasible is a nation without adequate power and water?" she said.
Only four out of six crossbench votes are needed in the new Senate, meaning One Nation's support may not be needed. Finance Minister Mathias Cormann said Australians voted for the tax relief at the election.
"It is incumbent on all parties in the Senate to respect the verdict of the Australian people ," he said. Opposition Leader Anthony Albanese will only commit to supporting the $1080 tax offset this year, remaining sceptical on stages of the plan to tackle bracket creep in 2022 and 2024.
