Some carbon tax compensation to continue

Low income earners should continue to be compensated for the impact of the carbon tax even though it hasn't existed for two years, Labor says.

Shadow Treasurer Chris Bowen said in supporting the government's budget repair savings measures, Labor took the view that carbon tax compensation should continue for those who relied on pensions as their primary income.

"You can also make the argument these are not generous payments and it is not an appropriate way to repair the budget," he said on ABC TV.

However carbon tax compensation will go where it was supplementary income.

The former Labor government introduced the carbon tax in July 2012, along with compensation for those receiving social; security. The new coalition government repealed it in July 2014.

Removing all the carbon tax compensation would have saved about $1.3 billion.

Labor and the government negotiated agreement on the budget savings omnibus bill, agreeing to 20 of the 24 omnibus measures, with total savings of $6.3 billion over the next four years.

Mr Bowen said he accepted that the budget needed repair and had made the case that that should be fair.