Labor has indicated it will support a Palmer United Party (PUP) push for a federal Senate inquiry into the Newman Government.

PUP senator Glenn Lazarus put forward a motion yesterday but it was rejected on procedural grounds.

The motion is likely to be considered again in October, but would need support from Labor and the Greens to proceed.

The wide-ranging inquiry could examine the use of Commonwealth funds, the appointment of officials, and possible conflicts of interest.

Previously non-committal on the motion, Labor has now indicated it would not block it.

Labor Senator Joe Ludwig said Campbell Newman's Government had written the playbook for Prime Minister Tony Abbott's cuts, including sacking 14,000 workers.

"As a principle, Labor doesn't block senators' abilities to hold inquiries where resources are available," Senator Ludwig said.

"We'll consider any proposed inquiry if it comes before the Senate.

"Currently there is nothing to consider before the Senate. It would be a matter for the Palmer Party to decide when and in what form the matter would return to the Senate."

Mr Newman dismissed the move, saying the motivations of party leader Clive Palmer were clear.

"I think the whole of Australia knows now where Palmer is coming from," he said.