The Federal Government says it is already doing enough to protect and compensate whistleblowers, labelling Labor's proposal to financially reward people who dob in corrupt employers "wacky".

Key points: Labor has made an election promise to reward those who expose crime and corruption

Labor has made an election promise to reward those who expose crime and corruption Its plan would see whistleblowers receive a percentage of the penalties that eventuate from the wrongdoing

Its plan would see whistleblowers receive a percentage of the penalties that eventuate from the wrongdoing Kelly O'Dwyer says Australians would not support rewarding people who may have been involved in wrongdoing themselves

If elected, Federal Labor has promised to introduce a suite of measures to "reward the brave Australians" who blow the whistle on crime and corruption.

"What our plan means for people who are doing the wrong thing is just be aware of the person next to you," Opposition Leader Bill Shorten told ABC's Insiders host Barry Cassidy on Sunday.

"They might just want the reward and not put up with the corruption. I want whistleblowers to come forward."

The plan includes a whistleblower rewards scheme where people would receive a percentage of the penalties that eventuate from the wrongdoing their information reveals.

Labor would also establish a protection authority, overhaul current laws into one single whistleblowing act and fund a prosecutor to "bring corporate criminals to justice".

The reward would be funded by the penalties collected by the Government, and the amount determined by the relevant investigative or law enforcement agency.

Industrial Relations Minister Kelly O'Dwyer labelled the plan "wacky".

"It's too little, too late from Bill Shorten," Ms O'Dwyer said.

"This wacky idea that you hand taxpayer dollars over to people who might have been involved in corporate misconduct themselves is not one that I think would sit well with most Australians."

Ms O'Dwyer said whistleblowers are well protected under proposed changes introduced by the Federal Government.

"Our Government is the only government that has delivered world-class whistleblower protections," she said.

"For the first time our taxation regime will be covered, and we have strengthened the financial service and corporate sector protections as well."

The proposed changes introduced by Ms O'Dwyer in December 2017 were first passed in the Senate.

They are yet to be considered by the House of Representatives.

Labor's plan comes on the eve of the Federal Government's response to the banking royal commission that has exposed widespread corruption and malpractice within Australia's big four banks.