SBS will have to immediately axe local programs and lay off staff unless Parliament passes legislation allowing it to double the amount of advertising it can air in prime time, the multicultural broadcaster has warned.

The Abbott government wants to allow SBS to air 10 minutes of advertising an hour in prime time, up from five minutes currently, and to use product placement in its programs for the first time.

SBS has singled out the Tour de France as one programming event where it could increase advertising. Credit:Reuters

It is estimated the changes would add $28.5 million to SBS's coffers over four years which would help soften the blow of $54 million in budget cuts announced last year. The Senate vote is expected to be tight, with key cross-benchers uncomfortable with increased advertising on SBS but wary of the consequences of denying the broadcaster extra revenue. Labor is opposed to the changes.

"Without the flexibility to generate further revenue, SBS will be forced to implement immediate cuts to its programs and services, effective from 2015-16," the broadcaster says in a submission to a Senate inquiry scrutinising the government's legislation.