The head of Australia's biggest mining company has backed the federal budget, saying Australians must boost their productivity if they want to continue to enjoy a high standard of living.

BHP Billiton chief executive Andrew Mackenzie told the ABC's The World program the Government is setting up a national conversation about competitiveness and productivity with this budget.

"There are certain things that industry will give but I think things were shared around, and I think other things that they are talking about - the repeal of the MRRT [Mineral Resource Rent Tax] and the carbon tax - coupled with this budget are adding to competitiveness."

He said productivity and competitiveness needs to be put on the national agenda.

"Otherwise there is a risk that living standards will decline, not stabilise or increase," he said.

"And I do believe that under the current government, with all the stresses and strains around the budget, we are changing the national conversation more and more about 'what are you doing, or what have you done lately to add to national income?'"

Mr Mackenzie's comments come as Coalition ministers continue the task of selling the Abbott Government's first budget.

Speaking at the Minerals Council dinner in Canberra on Wednesday, Prime Minister Tony Abbott said the budget represents a significant risk for the Government.

Support for the Coalition has slumped since the budget was handed down a fortnight ago, and some of the more controversial measures are likely to be blocked in the Senate.

Mr Abbott said the Government believes the changes are the right ones for the country.

"And how do you know we think they're right? Because we have taken risks - quite significant risks - in order to do what is right for our country."

'Things will get better' for coal industry

Mr Mackenzie also said there are brighter days ahead for Australia's coal industry.

Earlier this week, BHP Billiton's head of coal warned that more mines would close and jobs would go this year due to high costs and taxes and the strong Australian dollar.

He warned there would be tough times ahead due to a global oversupply and lower coal prices.

But Mr Mackenzie said the local coal industry has already made strong productivity gains.

"Australia has actually recovered its efficiency, it's recovered its volumes," he said.

"There's a little bit of an oversupply but that's starting to rebalance and that rebalance should be more in Australia's favour because in most cases Australian coal is cheaper than a lot of the other sources in the rest of the world.

"And as long as we can continue to drive productivity in coal then things will get better."