We are a tax cutting government: Abbott

Tony Abbott has defended his government's approach to cutting taxes after former Liberal treasurer Peter Costello described it as a "morbid joke".

As a distinguished former treasurer Mr Costello was perfectly entitled to his view, the prime minister said.

"But this is a tax-cutting government," he told reporters in Canberra on Tuesday, citing abolition of Labor's carbon and mining taxes and a flagged tax cut for small business in the May budget.