PM fires up as Labor confirms tax stance

Malcolm Turnbull has accused Labor of wanting to keep workers in their place after the opposition committed to rejecting a large part of his government's personal income tax package.

During a rowdy parliamentary question time, the prime minister launched into a tirade against the opposition saying Labor wanted to end "enterprise and aspiration".

"Australians should be entitled to aspire to get ahead, to get a better job, to invest in their business, to make some real economic progress in their lives," Mr Turnbull told MPs.

"It is what Labor used to stand for, but no more. This privileged elite opposite, they want to keep the workers in their place."

Ahead of a Senate debate this week, the Labor caucus at a meeting on Tuesday unanimously agreed to only back the tax reductions that start on July 1 in the government's seven-year, multi-stage tax package.

This comprises a new low-and middle-income tax offset worth up to $530 for individuals and an increase in the top threshold of the 32.5 per cent tax bracket from $87,000 to $90,000.

The opposition doesn't support further reductions due in 2022 and 2024.

"If the Labor party is asked to vote 'yes' or 'no' on the total package - including stages two and three - we will vote 'no'," shadow treasurer Chris Bowen told reporters after the meeting.

Furthermore, if the coalition manages to get the entire package passed by the Senate, Labor plans to repeal stages two and three if it wins government which Mr Bowen described as "responsible".

However, the government has repeatedly said it will not split the package that was announced in the May budget, saying it is all or nothing, setting up a high stakes game of political brinkmanship.

The coalition insists it "won't be blinking" as the tax debate descends into a game of "chicken".

Treasurer Scott Morrison took to social media to state the government's case.

"Unless we take action now, in coming years Australians will have more of what they earn eaten away in higher taxes caused by bracket creep," he said in a Facebook video.

He later described Labor's stance as a "creep tax".

While the Australian Greens support attempts to split the government's income tax cuts they will vote against them regardless of whether or not the bill is amended.

Without the support of Labor and the Greens, the government could still get the cuts through with the help of Pauline Hanson's One Nation or independent senator Tim Storer.

But while Senator Storer supports the first tranche of cuts, he too wants the package split and is hopeful the government will warm to his "prudent and sensible" plans.