The Federal Opposition leader, Kim Beazley, has not ruled out voting against tax cuts in next week's budget.
Mr Beazley says the government must be fair to middle-income Australians.
But he says contrary to government claims, Labor is not opposed in principle to a reduction in the top rate of income tax.
He says tax reform is needed to help what he calls Middle Australia and criticises the government for giving them just 10 dollars in tax cuts over the past five years.