Frustrated federal ministers fear their own Government is putting "the brakes" on plans for tough new food labels, which will not be signed off by Cabinet until later in the year.

New country-of-origin labels were flagged in the wake of this year's hepatitis A scare and a proposal was taken to Cabinet this week.

The labels would make it easier for shoppers to work out how much of their food was grown or packaged in Australia.

But they will not be signed off on by Cabinet until August at the earliest.

"Well, the primary reason is we want to consumer test the ideas that we have," Industry Minister Ian Macfarlane said.

"We have to get this right."

New logos and smartphone apps were among the proposals to be tested, but some ministers have told the ABC there was no reason not to act sooner.

They were worried "the brakes" were being applied and "obstacles are being put in their way" by some colleagues to ensure the labels were put off or watered down.

Some Liberals are privately concerned the labels will breach international trade rules.

The powerful food industry is too, and has been campaigning publicly and privately against the cost of a new labelling scheme.

"This will cost local producers, local manufacturers a significant amount of money," said Kate Carnell from the Australian Chamber of Commerce and Industry.

"I think it's likely to be really confusing for consumers."

Independent senator Nick Xenophon said the internal Coalition concerns were evidence that industry was trying to "kill off the proposal".

"They want this dead, buried and barbecued," he said.

But Mr Macfarlane insisted the labels would not be abandoned, saying the Government was pushing ahead with the scheme.

"We are determined to deliver consumers a meaningful food labelling system," he said.

"They will know what the product is, where it was processed and where the ingredients were made.

"We are progressing issues in relation to the World Trade Organisation and trade issues and we are of course very conscious of the cost."