Labor has condemned Prime Minister Tony Abbott's claim that Australia was heading for a "Greek-style economic future" as inflammatory, irresponsible and capable of harming economic confidence.

Mr Abbott made the remark during a radio interview in which he pledged he would not fix the federal budget this year at the expense of households but predicted a "broad budget balance" within five years.

"Under the former Labor government we were heading to a Greek-style economic future," the Prime Minister told 2SM host Grant Goldman. The Greek economy has been notorious in recent years for high levels of spending and debt, culminating in the Greek government-debt crisis.