Revenue Minister Kelly O'Dwyer has denied a deal has been struck with Labor over family welfare supplement payments.
The coalition had proposed to abolish the payment, worth $700 a year, but News Corp reports on Sunday there is a compromise from the opposition to halve it instead.
But Ms O'Dwyer was surprised to see such speculation, telling ABC TV: "I don't think it's come from the government, let me put it that way".
The government's original proposal was partly meant to fund its child care changes.
"The government needs to make sure that we cannot only deliver on the policies but make sure that we can pay for them as well, otherwise we're simply extending out the problem that already exists with the budget," she said.
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"So this is a Labor policy, I'm not sure where the speculation has come from that a deal has been done."
