Labor's betting laws were among a handful of major policy stalemates that appeared on their way to being resolved as federal parliament returned to Canberra on Tuesday after a five-week winter hiatus.
Under the changes, betting ads would be limited to three per hour between 6am and 8.30pm and gambling ads would be banned from live sport, stadiums and player jerseys.
Opposition Leader Angus Taylor was negotiating with Prime Minister Anthony Albanese on Tuesday over proposed changes that would make it harder for betting firms to offer inducements to gamblers, though the likely amendments were more limited than some backbenchers had anticipated.
The government suggests a resolution with the coalition about the controversial changes is not far off, but some opposition members seem less sure.
Nine backbenchers spoke in a joint party room of Liberal and National MPs. Of those, five spoke in favour of toughening the gambling rules as proposed by Labor.
They were understood to have raised concerns about gambling addiction and the effects of advertising on children.
The remaining four who spoke noted a need to get the balance right, raising concerns about potential over-regulation of the industry which could push gambling underground.
Liberal backbencher Simon Kennedy told parliament an independent inquiry was needed to examine the laws after the 2028 election to ensure the reforms were as strong as possible.
Greens communication spokeswoman Sarah Hanson-Young said any agreement between Labor and the opposition would represent a bad deal.
"I do fear that Angus Taylor just isn't up to the job of delivering stronger laws. I fear that Angus Taylor is too weak ... the proof will be in the pudding," she told reporters.
"I know there are good people on the Liberal side and there are good people across the whole of the parliament who know that we need to do better."
Mr Taylor is expected to present the amendments to his party room in the next sitting week, but the government is continuing to discuss desired changes with the Greens in a sign a deal with the opposition is far from done.
The minor party wants stronger reforms including a complete ban on betting advertising and has expressed concern Labor was being lobbied by gambling companies.
Finance Minister Katy Gallagher said she accepted the long-anticipated gambling advertising laws were "not where everyone wanted to be".
"We'll see where that lands," Senator Gallagher told ABC Radio when asked about the leaders' talks, after strong calls from anti-gambling advocates for a full ban on all betting ads.
''We have already, outside of this legislation, introduced a number of stronger measures around gambling, gambling advertising, and some of the support infrastructure to help with reduce the harm of problem gambling.''
As parliament returned, the opposition reiterated criticism of federal budget changes that limited negative gearing to new properties and reduced the discount on capital gains tax.
While the changes were aimed at making it easier for first homebuyers to enter the market, Mr Taylor accused the prime minister of causing a slump in the property market.
Mr Albanese said the government was addressing inequality between generations.
"What we have had is creating a change in the way that the tax system operates in order to give first home buyers a fair crack," he told parliament
"I want people to have the opportunity to be the first in their family to own their own home.
"That is something which is part of the great Australian dream."
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