The federal government may need to accept Labor changes to get its so-called asset recycling fund through the Senate.
Talks are underway in Canberra on Wednesday ahead of a debate on the legislation expected later in the day.
The bills enact a budget measure to set up a fund to encourage the states and territories to sell public assets and put the money into economic infrastructure such as roads, rail and ports.
If the state and territory governments sell assets and reinvest the money they will receive a 15 per cent federal bonus.
Labor has proposed to amend the bill so parliament is given the power to disallow the 15 per cent payment to states on a project-by-project basis.
A second amendment would require a cost-benefit analysis by Infrastructure Australia of a project before payment is approved.
The Australian Greens and Palmer United Party are understood to support the Labor changes.
If amended in the Senate it would then be up to the government in the lower house to agree or disagree with the changes.
It is unclear whether Labor would insist on its amendments if the government rejects them, but a number of crossbenchers believe the opposition will cave.
The Greens and PUP have been vocal in their opposition to the bill.
Labor transport spokesman Anthony Albanese has described the new asset recycling fund as a "con" and an attempt to pass responsibility for nation-building onto the states.
The Greens have three amendments, one of which would change the bill title to the Encouraging Privatisation (Asset Recycling Fund) Bill.
A second change would prevent the new fund from being used for toll roads and a third would ensure state "essential services" could not be sold.
Liberal Democrats senator David Leyonhjelm said he would support the government's asset recycling bills.
The government needs either the support of Labor or the Greens or six crossbench senators to pass the bills.
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