Backlash forces Abbott government to abandon dole changes

The Coalition has backed down on its plan to force jobseekers to apply for 40 jobs a month in order to keep their income support payments.

The target will remain at the existing requirement of 20 jobs per month.

Opposition Leader Bill Shorten has hit back after Prime Minister Tony Abbott said his government had "made some significant refinements".

"We've seen them today back down on another stupid idea," Mr Shorten said.

The federal government is also looking at adjusting its budget outlook, with Treasurer Joe Hockey due to hand down an update in December.

"We don't cook the books," Mr Abbott said.

"We are going to make careful and cautious predictions."

Australia's involvement in Iraq won't help the budget bottom line with an expected $500 million per year cost to taxpayers.