Federal Labor has refused to support the Coalition's full tax cut package, insisting it wants changes to the Government's plan in return for its support.

Key points: Labor offers partial support for Coalition tax cut plans

Labor offers partial support for Coalition tax cut plans Anthony Albanese says he wants some parts fast-tracked to stimulate the economy

Anthony Albanese says he wants some parts fast-tracked to stimulate the economy He wants proposed tax cuts for higher earners set for 2024-25 to be debated separately

The Coalition has been pressuring Labor to back its $158 billion, three-stage income tax cuts since it won the election last month.

Leader Anthony Albanese said his Shadow Cabinet today agreed to support the first two stages of the tax plan, which would immediately cut taxes for low- and middle-income earners.

Mr Albanese said he wanted the Coalition to increase the threshold for the second stage of the tax cut, from incomes of $90,000 to $120,000 and deliver the change earlier than planned.

He said that change would help stimulate the economy.

The Coalition has repeatedly said it wants its full tax package to pass the Parliament when it resumes and has so far refused to agree to break the legislation into parts.

But the Opposition Leader said Labor was unwilling to support the third stage of the plan, which would not come into force until 2024-25.

He said the Parliament should immediately pass the first two stages, and debate the third part at a later date.

The first stage of the plan was the centrepiece of the Coalition's April budget, which would mean people earning up to $126,000 this financial year receive $1,080 back at tax time.

Third stage lowers tax rate for those earning up to $200,000

The third stage of the tax plan seeks to flatten the tax rate to 30 per cent for people earning between $45,000 and $200,000.

Even if legislated, that change would not come in to effect for another five years.

"We think that stage three, at a cost of some $95 billion down the track for an economy which is very soft at the moment, which no-one can say what the economy looks like in 2024-25, is really a triumph of hope over economic reality," Mr Albanese said.

"What we know right now is that the economy needs stimulus and what we're looking for here is solutions rather than arguments."

The Government needs Labor or the crossbench's support to pass the tax cut legislation in the Senate.

Labor also wants the Government to fast-track infrastructure projects to also help stimulate the economy.

"We think that a bring-forward of the Government's proposed infrastructure investment would assist the economy, create jobs right now, help to boost productivity into the future," Mr Albanese said.

Politicians will return to Canberra next week for the first sitting week since the Coalition won the federal election in May.

They will only sit for three days, with the first two expected to be taken up with ceremonial events to mark the opening of the new Parliament, and commemoration of former prime minister Bob Hawke.

Mr Albanese said Labor would help the Coalition pass the first two stages of the tax plan through the Parliament on Thursday in return for stage three being deferred.

If the tax plan does not pass next week, the Coalition will have to wait another week before trying again when the Parliament next sits on July 22.

Last year, the Parliament passed a $530 tax cut for people earning up to $90,000 this financial year.

The first stage of the new tax plan would see that tax cut doubled for the current financial year.

But the Australian Tax Office (ATO) is unable to pass the $1,080 cut onto income earners until it passes the Parliament.

The ATO will retrospectively pay people back if people complete a 2018-19 tax return before the change passes into law.