'Supporting middle Australia': Albanese confirms new cost-of-living proposal

Mr Albanese did not respond to questions about whether he would be announcing changes to the controversial tax cuts, which Labor politicians have repeatedly vowed not to alter.

He instead confirmed he would take "a proposal on economic policy to the party room this afternoon".

The proposal is based on advice sought from the Treasury and Finance departments on cost-of-living measures, which won't increase pressure on inflation.

"This proposal will be all about supporting middle Australia," the Prime Minister said.

"We know that there are cost-of-living pressures on middle Australia, and we're determined to follow the Treasury advice to provide assistance to them."

Federal Labor politicians will meet on Wednesday afternoon to discuss the proposal, and Mr Albanese is due to appear at the National Press Club on Thursday to announce the changes.

Radio station 2GB on Monday reported there would be an overhaul of the tax cuts, while the Nine newspapers on Wednesday reported the government will offer bigger tax cuts to those who earn up to $150,000.

"My determination, my job is to get the best outcome for Australians, is to respond to the circumstances which we confront," Mr Albanese said, when pressed on whether he was breaking his word on the stage three tax cuts.

"And we know that there's been considerable coverage about the pressure that is on low- and middle- income earners, particularly with regard to cost of living.

"The proposals on economic policy that we will take to the party room this afternoon and I will be speaking at the National Press Club - I'm a leader who speaks at the National Press Club and makes myself accountable.

"I'll be giving a full exposition of economic policy and our response to provide assistance to middle Australia on cost of living at the National Press Club tomorrow [Thursday]."

More to come