Finance Minister Mathias Cormann has indicated the government is willing to negotiate the passage of its childcare reforms, paid for by cuts to family tax benefits.
The government is keen to support families to get better quality childcare with legislation expected to be put to the parliament during the autumn session.
"As a government we have shown we are very willing to pragmatically negotiate and we will continue to do that," Senator Cormann told ABC radio on Tuesday.
Under the changes, the childcare rebate and childcare supplement will be rolled into a single means-tested payment that will significantly benefit families on lower incomes.
Opponents argue many of those families will miss out when they lose their FTB end-of-year supplement.
A possible compromise allows recipients of family welfare payments to keep their full benefits.
