Greens back pension taper rate idea

A proposal to reduce the part-pensions of wealthier retirees is gaining ground after the Australian Greens indicated they will back the compromise.

But the minor party wants it to be part of a broader review of the retirement income system.

The government is talking to crossbench senators about cutting $3 a fortnight from the age pension for every $1000 over of an assets threshold.

That proposal would not include the family home in calculations.

It is being looked at as an alternative to the unpopular 2014 budget measure to link the pension to inflation increases.

Greens leader Christine Milne said the party would look at the proposition, but denied a deal had been struck with the government.

"At this stage it's simply the government flagging something," she told reporters in Canberra on Thursday.