Turnbull tax cut a 'thought bubble'

The Opposition has dismissed Prime Minister Malcolm Turnbull's proposed income tax cut as a "thought bubble" and demanded he instead drop the Medicare levy increase on low and middle income earners.

And they attacked the suggestion as a "distraction", to steer attention away from the cancellation of next week's sitting of the House of Representatives, and the Coalition's parlous grip on power.

READ MORE: Turnbull wants more money in voters' pockets

Mr Turnbull revealed his hopes for a tax cut in next May's Budget during a key note speech last night., as a solution to "bracket creep", when inflation pushes workers into higher tax brackets.

There's been no indication how big the cut might be, when it might come in, or how it might be paid for, while still reaching a surplus by 2020-21.

"What we want to make sure is that all of these hard working Australians, here, and right around the country, have more money that they can spend on their businesses, on their families, to realise their dreams," Mr Turnbull said after touring the Sydney Food Markets.

"Our focus is now on middle income tax cuts."

Labor leader Bill Shorten said if the Prime Minister was serious, he would dump the Medicare levy increase on eight million less well-off Australians.

He accused Mr Turnbull of offering "free beer tomorrow" to distract voters.

"Mr Turnbull's idea of a tax cut is to look after his friends at the top end of town," Mr Shorten said.

"Mr Turnbull wants to increase the tax on battlers and decrease the tax on millionaires."

Mr Shorten's comments were a reference to the Government's company tax cuts, and plan to lift the deficit levy on the well-off.

"He is way out of touch," Mr Shorten said.

Shadow Treasurer Chris Bowen said it was just a distraction.

"Malcolm Turnbull had a thought bubble last night, in a desperate 'look over here' attempt, here's a shiny thing, please don't notice that my Government is falling apart," Mr Bowen told reporters in Sydney.

"Please don't notice that I'm the first Prime Minister in living memory to say 'I'm not turning up for work at Parliament because it's all too hard'."

Mr Turnbull defended the cancellation of the sitting week, saying it had nothing to do with being two MPs down, but all about allowing the Senate to pass the same sex marriage legislation.

"That gives us the time to ... complete the important work. That's what it's about, it is about management, it's about common sense, it's delivering on our commitments to the Australian people," he said.

The Lower House was due to sit next Monday and the following week, but has been pushed back to begin on December 4, and most likely the following week, with the threat to sit even closer to Christmas to pass the marriage equality laws, and resolve the citizenship chaos.

Labor, the Greens, and crossbenchers say it's about protecting the Government on the floor of Parliament as it faces internal ructions, and the threat of its own MPs crossing the floor to bring on a Commission of Inquiry into the big four banks.

Greens Leader, Richard Di Natale, said it Malcolm Turnbull effectively moving a motion of no confidence in his own Prime Ministership.