Greens leader Christine Milne says her party could consider supporting a proposal to reduce the part pensions of wealthy retirees, but only if the government agrees to a broad review of retirement incomes.
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The government is talking to crossbench senators about cutting $3 a fortnight from the age pension for every $1000 over an assets threshold.
That proposal would not include the family home in calculations.
It is being looked at as an alternative to the unpopular 2014 budget measure to reduce pension rises by linking the pension to inflation increases.
Senator Milne said her party would look at the proposition, but denied a deal had been struck with the government.
"At this stage it's simply the government flagging something," she said in Canberra on Thursday.
On Thursday afternoon, the party reacted angrily to a post on Labor leader Bill Shorten's Facebook page stating: "Once again, the Greens are happy to do a deal with Tony Abbott and cut $80 a week from pensions."
Greens spokeswoman on ageing Rachel Siewert said accusations the Greens wanted to cut pensions were "plainly false".
"There is no deal. Bill Shorten should stop playing politics with pensioners for his own political gain and look at the facts," she said.
"Any suggestion that the Greens want to attack pensioners is plainly false and will cause distress to people already living under significant pressure. Back off Bill Shorten.
"We need a review because this latest proposal comes after a string of potentially harmful budgetary measures that would dig into the pension through changes to indexation, and changing the retirement age."
On Monday, Senator Siewert said any review into retirement incomes had to be thorough "and not aimed just at getting a few of their unfair cuts through the Senate".
"This review should be done comprehensively and must include looking as the assets test and changes to super concessions," she said. "Concessions to the wealthy come at the expense of fair pensions to the vulnerable."
Senator Siewert said the Greens would not back changes to the indexation of the aged pension, or changes to the indexation of the disability support pension or support payments for single parents.
She said those cuts would have to be taken off the table.
Council on the Ageing (COTA) has been calling for a comprehensive review of Australia's retirement income system, led by an independent panel.
"It would look at pensions, super, taxation of retirement income, mature employment issues – because if you're going to increase the pension age you have to look at that – and aged care," chief executive Ian Yates said.
"We certainly hope they [the government] come to the view that this is a good thing to do, and they will be widely supported for it."
Assistant Treasurer Josh Frydenberg said this week the government was considering a broad review of retirement incomes.
With AAP
