Tasmania's housing crisis has been dragged into the federal debate over tax cuts as crossbench senator Jacqui Lambie lays out her demands to the Morrison government.
But she is yet to come to a final position on the $158 billion package.
Senator Lambie is the last holdout as the government seeks to win over four of the six crossbenchers to pass its tax plan.
It wants to get the legislation through the Senate on Thursday, after rushing it through the lower house.
"People in Tassie are doing it tough and for them, $1k in their back pocket now will give them some immediate relief," Senator Lambie said in a statement on Wednesday.
"But there are thousands of Tasmanians who are on the pension, Newstart and don't earn enough money to pay tax, and they don't see any benefit from a tax cut."
She wants the commonwealth to forgive her state's $157 million social housing debt.
That's one-thousandth of the value of the tax cuts.
Senator Lambie said there were thousands of Tasmanians waiting for public housing and many sleeping in cars, parks and tents in the middle of winter.
"I am sick and tired of the state government getting money for public housing every year and sending half that cheque within that week back to the federal government to pay off our debt," she said.
"I'm going to go in hard guys, I want that public housing debt removed.
"This isn't about doing deals. This is about doing the moral right thing to do."
The debt was incurred between the 1950s and 1980s when the Tasmanian government borrowed money to build public housing.
Housing Minister Michael Sukkar met his Tasmanian counterpart in June and left the door open to forgiving the debt, but the state's senior federal Liberal Eric Abetz said that would only encourage bad behaviour.
Finance Minister Mathias Cormann continued to call on all senators to support the tax cuts.
"We are always happy to engage with senators in relation to issues of concern to them and their constituents," he said in a statement to AAP.
The Greens urged Senator Lambie to hold out.
"I'll be there, as will be Senator (Nick) McKim, to remind her every step of the way, if she supports these tax cuts tomorrow, that she's selling out Tasmanians," the party's treasury spokesman and Tasmanian senator Peter Whish-Wilson told reporters.
The government is in the market for crossbench support because Labor won't support the tax package in full.
The pair of Centre Alliance senators are almost on board but have a few final details about gas prices they want to sort out with the government to make sure any tax cuts aren't gobbled up by higher power bills.
Although the government is pulling out all stops to get the laws passed this week, Centre Alliance's Rex Patrick told AAP he wasn't bothered if it took longer because "people will still get their tax cheques".
Labor is hoping it can convince crossbenchers to support amendments so the second stage can happen sooner and the third stage be voted on later.
It argues the third stage - set for 2024/25 - is too far off for the parliament to decide on now.
The first stage of the plan will deliver up to $1080 to low and middle-income earners when they lodge their tax returns in coming months.
The second stage tops up a low-income tax offset, meaning people earning up to $45,000 - instead of $41,000 - will have a 19 per cent tax rate.
The final stage flattens the tax rate from 32.5 per cent to 30 per cent for people earning between $45,000 and $200,000 from mid-2024.
