Only a little more than a year into its second term and with Pauline Hanson turning politics upside down, the Albanese government finds itself in policy quicksand on three core issues: its budget tax reforms, its wrestle to curb the National Disability Insurance Scheme, and the electorally sensitive area of migration.

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On Thursday the government announced changes worth $475 million over the forward estimates to its tax package, yet to be legislated. While the budget itself indicated there would be consultations with stakeholders about detail, the measures are seeking to allay the fierce post-budget backlash from vested interests and some commentators.

If anyone doubts Labor's concern to smooth the passage for the tax legislation, they only have to note the alterations have been unveiled ahead of the report of the Senate inquiry into it.

Usually it would be the Treasurer alone assigned to do the sweep up. But Prime Minister Anthony Albanese fronted Thursday's news conference with Jim Chalmers, perhaps to make it clear he personally has been listening and taking account of feedback.

Some measures will be incorporated into the legislation that will be before the Senate in the coming fortnight, while others will wait.

The government says its changes mean "all 2.7 million active small businesses" will be eligible for the capital gains tax concessions. The threshold is being lifted from $2 million turnover to $10 million.

The government is also proposing special arrangements for start ups that are "innovative".

In addition, it is seeking to put to bed the scare campaign about a "death tax" by exempting all kinds of testamentary trusts from its planned 30 per cent tax on discretionary trust distributions. (The legislation currently before parliament doesn't cover trusts - that will come later.)

The government will amend in the Senate its tax legislation to provide more certainty on detail - the current version leaves much up to the treasurer's discretion.

In what will be an intense fortnight sitting beginning Monday, ahead of the winter........

© The Examiner