The Coalition is expected to unveil a softer approach to family tax benefits on Wednesday. Treasurer Scott Morrison's office was briefing the opposition on the new legislation on Tuesday night, in a sign of an increased effort on the Turnbull government's part to engage with Parliament.

Labor is open to considering the change but is waiting to see the full details of the proposal. Its more receptive stance is a far cry from its rejection of the original policy, that includes cutting Family Tax Benefit Part B when the youngest child in a family turns six to raise $1.9 billion over five years.

Under the current system, payments cut out when the youngest child turns 16 or 19, depending on whether they are still at school.

Among other 2014 family payment measures stuck with no Labor or crossbench support is a freeze in family tax benefit rates and income eligibility thresholds (to qualify for certain payment rates) and a cut to end-of-year supplements, which are worth more than $3.8 billion in savings over four years.

It is understood the government is now planning not to go ahead with the rates and eligibility freeze, will stop family tax benefit part B for couple families when the youngest child reaches 13 and phase out end-of-year supplements but increase the base rate of family tax benefit part A by $10 a fortnight.

The Coalition is also suggesting a $1000 boost to family tax benefit B families who have a child under one, but would reduce payments to single parent families with children between 13 and 16.

The phasing out of supplements would ensure the government was still left with significant savings, providing more than $4 billion over four years. Other reforms to family tax benefit part B would save a further $1.4 billion.

While the Coalition upped the pressure on the Senate earlier this year, tying the 2014 family payment cuts to its new $3.5 billion childcare package, this did nothing to address Labor or crossbench opposition.

On Tuesday, Mr Turnbull conceded during question time that the stalled measures were "unlikely to pass in their current form". But he said the revised package would "strike a balance between achieving significant savings while still providing sufficient financial support to those families most in need".

Cabinet discussed the changes on Monday and on Tuesday morning, Social Services Minister Christian Porter updated colleagues during the regular Coalition party room meeting. The legislation is expected to be introduced as early as Wednesday.

Government sources said talks were continuing with the crossbench as well as Labor about supporting the changes. While some crossbenchers told Fairfax Media they had not been in recent negotiations with the Coalition about the reforms, others said they were still considering their positions.

'Big win for families'

Labor's families and payments spokeswoman Jenny Macklin described the new approach to family tax benefits as a big win for families.

"The government has backed down on one of the biggest cuts which was the freeze to family tax benefits," she told ABC Radio on Wednesday morning.

But she said Labor still had concerns, particularly about what they would mean for single parents and needed to go through the detail of the government's proposal.

"On a first read, my concerns are for single parents and grandparent carers who are looking after teenagers," she said.

"I don't think the government will think for a minute they'll get a rubber stamp."

The Greens families spokeswoman Rachel Siewert agreed that the government that "particularly hurt single parents".

"Anyone with kids aged 13 to 16 knows it can be some of the most expensive years as a parent," Senator Siewert said.

Independent senator Glenn Lazarus welcomed the Turnbull government's consultative approach but told Radio National he still had concerns about protections for single parents and was still making up his mind.

The federal government currently spends about $20 billion a year on the benefits. Family tax benefit part A is paid per child, with the amount based on a family's income and the age of the child. Family tax benefit part B is paid per family and provides extra assistance to single parents and families with one income.

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