Climate change spokesman Greg Hunt says Labor is divided about the future of its plan to price carbon.
Mr Hunt said it was more likely disgruntled Labor MPs would stop the carbon tax bills from reaching the House of Representatives than key crossbenchers would withdraw their support.
"There is a chance of a partyroom revolt or a cabinet revolt," Mr Hunt told AAP on Wednesday.
" ... every day I am getting very senior business people come to me saying 'we've been talking to members of the (Labor) partyroom, talking with cabinet ministers and, it's not universal, but there is a move within the ALP parliamentary partyroom, and the within the cabinet, to ditch the tax'."
He added: "We would like the independents to reconsider their position."
He said Labor's carbon tax modelling was flawed because it was based on $20 a tonne for carbon emissions, when the starting price would be $23 a tonne when it begins in 2012. Read the full report here.
Source: Darren Cartwright, Sydney Morning Herald.