The Turnbull government offered to exclude Australia's big four banks from its company tax cuts in a last-minute pitch to gain the support of One Nation for the signature economic policy.

In a move that will deepen entrenched animosity between the banking sector and the Coalition government, Treasurer Scott Morrison drafted legislation that excluded banks with held assets worth more than $500 billion and delivered it to One Nation leader Pauline Hanson last week.

Senator Hanson - who had previously said she could never vote for a tax cut for the big banks - rejected the approach, ensuring the $35.6 billion package will fail when it comes to an expected vote on Tuesday.

"One Nation has voted for every single business, except the banks, with a turnover above $50 million to pay more of what they earn to Canberra," Mr Morrison told Fairfax Media.