All high-income Australians would pay the 1 to 1.5 per cent Medicare levy surcharge under a budget proposal that would raise a breathtaking $4 billion per year, more than six times the net amount saved in the first Turnbull budget.

At present only high-income Australians without private health insurance are made to pay the extra levy.

Extending it to all families earning more than $180,000 per year and all individuals without children earning more than $90,000 per year would raise at least $900 per year more from each high-income Australian with private health insurance, and would offset the removal of the high-income temporary budget deficit repair levy, which expires in the middle of this year.

"In 2013 there was bipartisan agreement, and broad public support, for an increase of 0.5 percentage points in the Medicare levy to help fund the National Disability Insurance Scheme," said Australian Council of Social Service chief executive Cassandra Goldie.