Based on the current numbers, the government will need the support of eight of the nine crossbench Senators to pass legislation opposed by Labor and the Greens.

The government will next week introduce a new bill combining its $3.5 billion childcare package with almost $6 billion in cuts to family tax benefits.

The government's childcare changes would combine the existing Child Care Benefit and Child Care Rebate into one means-tested subsidy. The package also introduces a tougher activity test to ensure parents claiming childcare benefits are engaged in meaningful study or employment.

Childcare changes: concern combined bill will undermine benefits for families 

Most families who use childcare would be better off under the package, as demonstrated by a survey of 11,200 parents by the country's largest childcare provider Goodstart Early Leaning.

The online survey found 77 per cent of families would be better off under the government's changes while 23 per cent would be worse off.

Middle income families and those engaged in significant amount of work or study would be best off while high-income and non-working families would be worst off.

But the government's decision to combine the childcare package with cuts to family payments would wipe out or reduce the financial benefits for many families.

The government has proposed abolishing the Family Tax Benefit Part A and B supplements (worth $726 and $354 a year respectively) and reducing payments to single parent families where the youngest child is aged between 13 and 16.

Fairfax Media understands the government is prepared to soften the family payment cuts to secure the crucial support of the Nick Xenophon block of senators.

Independent Senator David Leyonhjelm told Fairfax Media he was inclined to vote against the government because he does not support increased spending on childcare.

"I support better targeting of childcare payments and means-testing but we don't need $3.5 billion in extra funding," he said.

"It's great they want to cut back the family tax benefits which are really just middle class welfare but I won't be voting for a net increase in childcare funding."

By contrast, Tasmanian senator Jacqui Lambie is unlikely to support the bill given one in five voters in her state receive family tax benefits.

Early Childhood Australia chief executive Samantha Page said the childcare system was in need of urgent reform, but that she was concerned combining the package with family payment cuts would undermine its benefits for families.

"There is a real risk that the unified bill won't pass the Senate, and families won't get the much promised relief from the increasing financial burden of childcare costs," she said.

Media ownership law: One Nation prepared to torpedo reform

Communications Minister Mitch Fifield is also continuing negotiations with the Senate crossbenchers to pass the government's media ownership changes.

The government wants to scrap the "reach rule" – which prohibits television networks from broadcasting to more than 75 per cent of the population – and the "two-out-of-three rule" which bans media proprietors from controlling a newspaper, television and radio station in the same market.

Neither the Nick Xenophon Team nor One Nation have yet been convinced to support the government.

One Nation Senator Brian Burston told Fairfax Media the party was concerned about any further concentration of media ownership.

"The two-out-of-three rule – we don't support getting rid of that," he said.

Party leader Pauline Hanson has also expressed concern the changes would allow foreign media companies to expand their reach in Australia.

Fairfax Media chief executive Greg Hywood and chairman Nick Falloon met with Senator Xenophon last week to lobby him to support the changes and are seeking a meeting with One Nation.

Company tax cuts: Morrison lobbies Xenophon 

Treasurer Scott Morrison on Friday met with Senator Xenophon, where they discussed the government's plan to reduce company tax rates.

Senator Xenophon has previously said he only supports tax cuts for companies with a turnover of up to $10 million a year, but the government hopes it can convince him to support reductions for companies with a turnover up to $50 million.

The government wants the Senate to vote on its company tax cuts – a centrepiece of its election policy – by March.