The Federal Government has floated a compromise proposal with Senate crossbenchers to try to clinch support on its higher education changes.

The office of Education Minister Christopher Pyne confirmed he was discussing a plan suggested by the architect of HECS, Bruce Chapman, to cut subsidies to universities if they increased fees over a certain amount.

The Government has vowed to deregulate universities, which would have allowed them to set their own fees.

Mr Pyne has said securing support for the changes was the Government's highest priority and it wanted the legislation passed this month.

Prime Minister Tony Abbott told AM the Government was continuing to work to get senators to support the changes.

"They were initially a little anxious about it, but Christopher Pyne has been working it through with them," he said.

"Just about every vice-chancellor in the country is adamant that this is going to be good for universities, good for students and ultimately very good for our country."

Mr Abbott said he was hopeful the Government's proposals would garner enough support from the cross benches to pass the Senate.

"Plainly Senator Dio Wang is very keen on our proposals and hopefully as the Palmer [United] Party discusses this more and more, Senator Wang will be more and more influential," he said.

Labor's higher education spokesman, Kim Carr, said the Government's proposal would amount to a backdoor tax on students.

"The Government intends to levy a great big new secret student tax, a tax that would affect possibly as many as 1.2 million students across all our universities," Senator Carr said.

Assuming Labor and the Greens remained opposed, the Government would need the votes of six crossbench senators to pass its revised bill.

The Senate rejected the Government's first attempt last year.