Government still pondering crackdown on aged pension

Social Services Minister Scott Morrison isn't ruling out a tightening of the assets test to limit payment of the aged pension to some well-off older people.

Mr Morrison said discussions were continuing with Senate crossbenchers including Independent Senator Nick Xenophon and Liberal Democrat David Leyonhjelm.

"There is, I think, an emerging consensus about the need not to stick your head in the sand about the future fairness and sustainability of the pension but to take decisions to do that," he told ABC television.

The Australian Council of Social Service (ACOSS) has suggested the government reduce the aged pension asset test threshold from $1.1 million to $794,250, excluding the family home.

That would leave fewer wealthy elderly people eligible for the pension.

Mr Morrison said the ACOSS argument had been very constructive and had attracted good support across Australia.

He said Labor had been left behind in this debate.

"It's important we have something that's fair and sustainable for the future," he said.

Mr Morrison wouldn't say how close the government was to a deal with the Senate crossbench to allow it to be announced in the budget next month.

"The budget will be released in the usual course and we'll continue to work constructively with the crossbenchers," he said.