Calls for a 10 cents a litre "cornflakes" levy to support drought-hit dairy farmers has sparked a cautious response from the prime minister, but it could still go ahead.
A Queensland dairy collective wants Australian consumers to pay the milk impost, which would be returned to farmers being hit hard by rising grain and hay prices.
But Prime Minister Scott Morrison has played down wholesale government support for the proposal, saying he doesn't want to push up costs for households.
"My first instinct is never to try and solve a problem with a tax and I don't want to see any increase in prices for Australians," he told Nine Network on Wednesday.
"I want to ensure ... the sustainability and viability of our dairy sector, but not ... at a cost to mums and dads pouring milk on their cornflakes."
However, Mr Morrison didn't reject the idea entirely, saying Agriculture Minister David Littleproud would take the proposal to cabinet.
Mr Littleproud is working with retailers and dairy processors to get backing for the idea, after Woolworths gave it qualified support.
"A proposal will come forward and we'll consider it carefully," he said on Wednesday.
Mr Littleproud expects there will "some action in the coming week" for a whole industry approach.
Woolworths would back the levy if all supermarkets were involved, while Coles was more "circumspect", he added.
"We are hoping that Coles will now come on that journey with Woolworths (and) we are able to facilitate that as quickly as we can," he told Nine Network.
More than 22,000 people have signed a change.org petition set up by the Queensland Dairyfarmers' Organisation.
The petition calls on Coles and Woolworths to collect the levy by increasing prices, and for milk processors to guarantee to pass the full amount back to farmers.
Nationals leader Michael McCormack is open to any ideas to help farmers struggling with the drought.
"I support anything that's going to get more profitability at the farm gate," he told Sky News.
