Labor could hike cigarettes for Gonski

A Labor proposal to raise the tax on cigarettes to pay for Gonski school reforms has been lampooned by a key crossbench senator.

Liberal Democrat David Leyonhjelm echoed the saying that the optimum level of tax was like plucking a goose to take the maximum number of feathers with the least hissing.

"We are already at the stage where the hissing is pretty substantial," he told reporters in Canberra on Tuesday of reports Labor is considering another round of three 12.5 per cent hikes on cigarettes.

Senator Leyonhjelm said he couldn't see a connection between smoking and education, but independent senator Nick Xenophon was more open to the idea.

"If you can slug the tobacco industry and a consequence of that is that it can help fund some worthy programs such as education then I'm all for it," he said.

But he also believes if smokers are going to be "slugged more" they should be given help to quit.

Deputy Labor leader Tanya Plibersek said the idea shouldn't be ruled out.

"I think it is important to look at all options and I was the health minister when we last raised the cigarette excise," she told reporters.

More expensive cigarettes means fewer young people, in particular, smoking, she said.