Opposition considers whether to back government's stage three tax cuts policy

Low- and middle-income earners may be closer to seeing a major tax cut as the federal opposition weighs up supporting the government's new – and highly contested – stage three tax cut policy.

Under the revised plan, every taxpayer will receive a cut to help alleviate pain during the cost of living crisis.

The opposition has loudly condemned Prime Minister Anthony Albanese for the move, which is an election promise backflip, but is now considering the proposed changes.

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"We'll take a look at the figures as we are doing today and we'll make an announcement in due course," Opposition Leader Peter Dutton said.

Only a few days ago, he had stronger remarks to make against Albanese's changes.

"He doesn't even have the strength of character now to stand up and apologise for making that egregious error in judgement," Dutton said.

Deputy Opposition Leader Sussan Ley had also earlier pledged her party would fight the legislation in parliament and said they were "not prepared to give up on this".

Albanese argued the change would help residents facing high prices and encourage workers into the labour force.

"I have said this is a change of position - but it's a change of position not driven by politics but driven by looking after people," he said on Sky News.

The tax changes would begin in July if passed.

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But with the cost of living also affecting rental and housing prices, the Nationals want the Albanese government to do more by the May Federal Budget.

The party is calling for tradespeople to be prioritised in immigration intakes.

"We've got to be able to give protections - ease back on immigration and give everyone the sanctity of a roof over their head," Leader David Littleproud said.