Make budget fairer than last one: ACOSS

Federal Treasurer Joe Hockey is being urged to restore government revenue by reducing wasteful tax arrangements rather than by cutting spending.

In its 2015/16 budget submission, the Australian Council of Social Service says this budget must be a lot fairer than the last one on the path back to a surplus.

"The way this can be achieved is by seriously targeting wasteful spending at the top end ... instead of pursuing policies that shift the burden on to people on the lowest incomes," ACOSS chief executive Cassandra Goldie says in a statement.

ACOSS has identified more than $13 billion of potential savings in the next financial year, rising to more than $18 billion in 2016/17 through measures that restore the integrity of the tax system.

Its proposals include the removal of the $6.6 billion private health insurance rebate, while estimating that $2.2 billion could be saved by the reduction or abolition of poorly targeted tax expenditures.

Dr Goldie says the reform of negative gearing, superannuation and capital gains tax concessions are long overdue and cost the budget billions of dollars in forgone revenue.

Other initiatives include a tightening of the age pension assets test, saving $1.35 billion.

It also calls for an adequate living allowance for people looking for paid work, saying the $37 a day Newstart payment is not enough.

Dr Goldie said the budget could not repeat the mistakes of the last one, which imposed the heaviest burden on those with the least capacity to carry it.

"Given the current environment, it would be extremely risky if the government pursued further cuts at this time," she said.