Hockey tests Senate crossbench support

Senate crossbenchers say the Abbott government needs to hone its negotiation skills if it is to win them over.

Demonstrators take part in a Bust the Budget protest in Sydney

The federal government reportedly delivered the budget knowing its cuts would hurt poor households. (AAP)

Crossbench senators continue to pressure the Abbott government to withdraw or revise some of its controversial budget measures.

Treasurer Joe Hockey met with Liberal Democrats' senator David Leyonhjelm on Monday as he continued a round of talks with the MPs ahead of federal parliament sitting later this month.

Senator Leyonhjelm later told AAP he got the feeling the 11-month-old government was still getting used to having to negotiate.

"I pointed out that if the situation was reversed and it was Labor in government needing our votes I would have 25 (ALP senators) new best friends," Senator Leyonhjelm said.

"He (Mr Hockey) laughed at that and said 'that's true. We are not very good at that thing'."

Senator Leyonhjelm said he had no problem with the depth of the budget expenditure cuts, saying they could have gone further.

When he suggested this to the treasurer, Mr Hockey "smiled a little bit because I think he probably agrees with me", the senator said.

The Liberal Democrat, who opposes new levies on business, has proposed the mining tax legislation be split into separate spending and revenue bills for debate and complains Clive Palmer's Palmer United Party (PUP) and the Australian Greens were holding up progress.

"It is Clive's tax, he has retained it," the senator said.

As well, a proposed $7 GP visit co-payment could be made more palatable if it was offset by a cut in the co-payment for pharmaceuticals and the revenue did not go to a medical research fund.

While Mr Hockey and the senator did not discuss a delay to Prime Minister Tony Abbott's signature paid parental leave scheme, its financial impact was discussed the treasurer saying it would be "cost-neutral".

Senator Leyonhjelm believes the focus - the scheme is expected to cost about $4 billion a year and be partly funded by a levy on big corporations - should be on childcare services.

The PUP wants Mr Abbott to give up the scheme, saying it's too expensive.

PUP senator Jacqui Lambie, who met with Mr Hockey over the weekend, said she was convinced a mini-budget was needed and that the paid parental leave and the GP co-payment should be axed.

While she personally liked Mr Hockey, "his economics are certainly worth questioning".

Senator Lambie will bring a "folder full of questions" with her when she visited the Treasury department office in Canberra next week.

"I think the budget measures are illegitimate and they don't have a mandate for them," she told ABC Radio on Monday.

The PUP has suggested halving the foreign aid budget to pay for economic stimulus in struggling states like Tasmania.

"He was just sort of stunned," Senator Lambie said of the treasurer's reaction to the proposal.

Mr Hockey, who needs to secure at least six senator crossbench votes to get his remaining measures through, said there was a lot of work to do.

"I will meet with anyone who is sensible and the independent senators so far are proving to be sensible, unlike some of the others in the upper house," he said.

Shadow treasurer Chris Bowen said the coalition budget was out of touch and unfair because it targets low income earners.


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