The federal government has hinted it will help Qantas remove the "ball and chain" hampering its competitiveness.

Treasurer Joe hockey says the airline has met four crucial tests that would allow the government to consider legislative changes.

The national carrier has long complained of being hamstrung by the Qantas Sale Act - introduced when the government sold the airline - which caps foreign ownership of the company at 49 per cent, thereby limiting its access to capital.

Mr Hockey on Thursday admitted the Act is "a ball and chain around the leg of the business".

"Ultimately it inhibits the capacity of the company to be able to respond to an ever-changing market," Mr Hockey told reporters in Canberra.