The reports are likely to draw more criticism from Labor, which has warned a “deficit levy” would define Tony Abbott as a Prime Minister if he pursued the new tax and says the government was paying the price for the “deceitful, voodoo economics” of its election campaign. Prime Minister Tony Abbott has signalled a new income threshold for government assistance. Credit:Alex Ellinghausen On Monday, Opposition Leader Bill Shorten attacked the Abbott government, accusing them of reneging on promises made before the election. "They've doubled the deficit, now because they've doubled the deficit they want all Australians to pay a deceit tax," he told reporters in Brisbane. The Australian Financial Review also reported on Monday that business and industry leaders were urging the government not to raise taxes to reduce debt.

Australian Chamber of Commerce and Industry chief operating officer John Osborn opposes the idea of a levy to help pay down government debt. ‘‘The government promised no surprises and no new taxes and a debt levy would be an unwelcome surprise,’’ he told ABC Radio on Tuesday. The Business Council of Australia chief executive Jennifer Westacott told News Corp papers on Tuesday that ''temporary tax increases are no substitute for reforms that are needed to bring spending back under control''. But Australian Council of Social Service head Cassandra Goldie supports the levy. She says Australia is one of the lowest taxing countries in the OECD and needs to strengthen its tax base.

‘‘The levy would need to be done sensibly, it would need to be carefully targeted,’’ Dr Goldie told ABC radio on Tuesday. ‘‘A levy is probably in the right direction.’’ Treasurer Joe Hockey is due to release the Commission of Audit report on Thursday, which is expected to reveal measures to rein in the deficit that is predicted to be $30 billion in the 2017-2018 year. In a speech to the Sydney Institute on Monday night, Prime Minister Tony Abbott acknowledged that there wouldn't be many people ''without a grumble'' when the government hands down its first budget on May 13, but he also held out prospects of personal tax cuts before the end of the decade. In the speech Mr Abbott signalled: Families on $100,000 and more to see some tax changes

Welfare payments to undergo indexing and eligibility threshold adjustments

Income tax cuts likely in four or five years’ time

More autonomy and less red tape for businesses

University funding to shift

‘‘Biggest-ever’’ national roads program

Scrapping of the school kids bonus, income support bonus

No cuts to age pension or hike in access age before 2017

Post 2017, tighter indexation arrangements and eligibility thresholds for age pension

''I know that most families are doing it tough, including many families with above average incomes but heavy commitments,'' Mr Abbott said in his speech. ''Not for a second would I label families as “rich” just because they are earning $100,000 a year. A teacher married to a part-time shop assistant with children to feed, clothe and educate is certainly not rich especially paying a capital city mortgage. ''But the best way to help families on $100,000 a year is long-term tax relief and more business and job opportunities, not social security.'' Mr Abbott said no one would be exempt from repaying Labor's spending binge, including members of Parliament. "The budget pain will be temporary but the economic improvement will be permanent," he said.

Mr Abbott said in his speech that the upcoming budget will not change everything "with one stroke", rather it will be the first instalment in a long-term restructure plan. Neither will it offer a "spurious guarantee" of a surplus by a particular date but it will put the budget on track for a strong surplus within a decade. "The changes in this budget will make personal tax cuts much more likely in four or five years' time. "This budget keeps faith with our election commitments," he said. He also said school leavers "will be learning or earning" and most families will be doing it tough.

He said Labor didn't just "booby-trap" the budget by making vast open-ended commitments on schools and hospitals to take effect beyond the four-year forward estimates period. Loading "They created a Ponzi scheme of unsustainable spending because they thought new taxes, more spending and bigger bureaucracies were the answer to every problem." AAP, with staff reporters