8000 Bendigonian's tax cuts to be smaller, including Lisa Chesters'

So will she.

"I am in that group - Australian politicians are all in that group," the Bendigo Labor MP said.

"We are still getting a generous tax cut."

Labor has abandoned an election promise to back Morison government-era plans for tax reform and launched a push for changes of its own, arguing lower-and middle-income earners should get bigger cuts from July 1.

Ms Chesters said all 66,000 taxpayers in the Bendigo electorate would get a tax break under the proposed changes.

"In fact, we estimate that 88 per cent will receive a bigger tax cut from a Labor government than Scott Morrison's plan, which was legislated five years ago."

The average tax-cut across the electorate would be $1424.

Some would get less tax back than they would have expected. Eight thousand people in Bendigo's electorate on more than $200,000 a year would.

Eight thousand people in Bendigo's electorate would get less of a cut because they earn upwards of $200,000 a year.

They will still get a tax cut upwards of $4500 a year, she said. They could have otherwise have been in line for upwards of $9000.

"Think about our community. I think about how 88 per cent of tax-payers in our community are better off under this plan," Ms Chesters said.

It is unclear whether the government can get its tax package through the upper house by July 1.

It does not hold a majority there and Ms Chesters said things could come down to others, including the Liberals and the Greens.

Opposition leader Peter Dutton said Australians deserved tax cuts and that the ones Labor was now targeting were the third stage of a broader package.

He said millions of voters went to the last election expecting that Labor would honor its 2023 election pledge to honour the Morrison-era tax cuts.

"As it turns out, that is not the case. The prime minister has knowingly and willingly lied to the Australian people," he said.

Liberal candidate for Bendigo Matthew Evans said it was not the first time the prime minister had broken promises.

He pointed to promises about power bills and said they were still rising, "and he promised families would be 'better off', but interest rates have gone up 12 times under his watch".

Mr Dutton said Labor's changes would adversely affect four million Australians including aspirational young people with families.