Middle Australia could get bigger tax cuts as Prime Minister Anthony Albanese overhauls the promised stage-three package, which has been criticised as too generous for top-earners.

Albanese is expected to shift the income tax changes to benefit people earning up to $150,000 and scale back the savings promised to earners on $200,000.

Under the plan, millions of middle-income workers would be offered a more generous deal, it has been widely reported early on Wednesday.

But those on higher salaries would receive modest returns; about one million Australians who earn over $150,000 would be worse-off than under the existing legislation, but would still gain some benefit.

While the details have not been confirmed, the most generous tax relief is expected to go to people earning up to $135,000.

The changes will reportedly be put to a special Labor caucus meeting late Wednesday before Albanese unveils the detail in a speech to the National Press Club on Thursday.

Under the original stage-three tax cuts, that were to take effect on July 1, the 37 per cent marginal tax rate would be scrapped for those earning more than $120,000 a year.

The 32.5 per cent tax rate would be lowered to 30 per cent for workers earning between $45,000 and $200,000.

That tax package offered a cut worth $1875 a year to a worker earning $120,000 but a more generous saving of $9075 a year to a worker earning $200,000.

The Sydney Morning Herald reports that the proposed changes will scale back the $9075 tax cut to bring it into line with the benefits offered to those on lower incomes.

On Tuesday, Albanese said he supported tax cuts, and “everyone” would receive one during a radio interview with Kyle Sandilands.

However, there are concerns within the government that any change to the controversial tax cuts will amount to a broken election promise and unleash political attacks from the Coalition.

The government has consistently pledged it remained committed to implementing the tax cuts in full.

Australia’s largest business groups have urged Labor “to stick to its promise” of not amending them.

In a joint statement, the Business Council of Australia, the Australian Industry Group, the Australian Chamber of Commerce and Industry and the Minerals Council of Australia said “tinkering at the edges would mean a promise has been broken”.

“Our tax base is eroding and with an unhealthy reliance on taxing incomes as well as a raft of inefficient taxes, especially at state and territory level, we are increasingly ill-equipped to meet our society’s needs,” the statement read.

“Fixing this mess requires not only political will and co-operation from across the federation – it will require public confidence that a program of reforms will be delivered as promised.”

Welfare advocacy groups have slammed the tax cuts as benefiting those at the top end of town while people on lower incomes struggle to manage a cost of living crisis.

Critics also claim the tax relief will be inflationary.

Opposition treasury spokesman Angus Taylor has described any move away from the full tax cuts as being the “mother of all broken promises”.

He said after weeks of “weasel words and word games” that Albanese could not be trusted.

-with AAP