Voters back Morrison on cutting spending

Voters appear to agree with Scott Morrison about getting government spending down.

The treasurer says his first budget will focus on jobs and growth, a targeted and sustainable tax system and a path to a balanced budget by getting expenditure under control.

Mr Morrison was quizzed in parliament on Monday about whether he would heed the warning of a global credit rating agency by making his May 3 budget about spending and revenues.

"Or will the treasurer deliver a budget which puts Australia's prized AAA credit rating at risk?" deputy opposition leader Tanya Plibersek asked.

Mr Morrison wasn't impressed, saying he found it galling Labor would lecture him about how to repair a budget after the "fiscal madness" of its time in government.

"This is how you repair a budget ... you get control of your spending and you reduce your expenditure as a share of the economy," he said.

The latest Newspoll found 65 per cent of respondents in agreement.

Almost 40 per cent want the proceeds from spending cuts to pay down debt and only a quarter say it should go to delivering tax cuts.

The support for spending cuts will be music to the ears of Chris Richardson, from Deloitte Access Economics, a long-time critic of over-spending by both sides of politics.

In his latest business outlook, Mr Richardson says while the performance of the economy is favouring the tax take, the cost of past policy promises is still on the up.

"So if you hoped the iron ore price rebound meant the long nightmare of tax writedowns has now run its course, then you'd better keep hiding under a blanket or risk major disappointment," he says.

Iron ore prices remain comfortably above $US50 per tonne, well above the $US39 forecast by the treasurer in the mid-year budget review and suggesting billions of dollars of additional tax revenue.

Australian Council of Social Service boss Cassandra Goldie says the government should forget tax cuts for individuals or companies at a time when governments have a serious revenue problem.

Instead, she is urging the federal and state governments to switch from stamp duties to a land tax as part of the national tax reform package to be included in the budget.

Such a switch would stabilise the tax base for the states and improve housing affordability by removing barriers to entering the housing market.

"If the goal of tax reform is economic growth, then the best reform option is a switch from stamp duties to efficient land taxes," Dr Goldie said.