Crossbench senators would support the federal government's $176 billion tax plan in exchange for a tax on digital companies such as Google, Facebook and Uber.
The coalition needs two more votes to get its plan to cut income tax for low- and middle-income workers, and lower corporate taxes, passed by parliament.
Centre Alliance senators Stirling Griff and Rex Patrick are "100 per cent behind a digital economy tax proposal", Fairfax Media reported on Monday.
"If the digital economy tax makes the government coffers swell more than they do now, that is very much a positive step," Senator Griff said.
"As long as there are no cuts to core community services, we'd be receptive to a degree of tax relief for everybody. A lot could happen in six weeks; maybe the company and income taxes can be done by July."
The government is trying to get a $140 billion income tax cut plan, as well as a $35.6 billion bid to lower the corporate tax rate for big businesses, through parliament.
The package, a key plank of the federal budget, is due for debate in House of Representatives on Tuesday.
Labor supports the first part of the tax cut plan, which starts with a reduction of up to $530 a year under a low and middle-income tax offset.
If it wins the next federal election, Labor has promised almost doubling this offset to over $900.
But it won't back the Turnbull government's second and third steps, which make changes to certain tax brackets at various stages, until at least the government provides more information on their cost.
The party supports taxing the digital economy, but shadow assistant treasurer Andrew Leigh said it needs to be a permanent solution, not a stop-gap measure.
"The policy needs to be evaluated on its merits," he said.
The Greens won't have a bar of any income tax cuts, from either of the major parties.
Greens leader Ricard Di Natale believes tax cuts are a "bribe" by the government to gain support for the remainder of its company tax cuts, which are stuck in the Senate.
Share
