Tony Abbott has warned people to prepare for pain with a purpose in a budget in May he says will give Australia more authority when world leaders gather in Brisbane in November.

''I don't want people to think that it's all doom and gloom because there's a purpose to all of this, and the purpose is to strengthen our economy over the medium and the long term, but inevitably in this budget there will be things that people won't like much,'' he said.

Waiting for the waves: Prime Minister Tony Abbott surfs at North Steyne. He says the budget will be a showcase for Australia with world leaders in November. Credit:Nick Moir

While many cuts, like the ending of the baby bonus, had been foreshadowed, Mr Abbott said that decisions would be unpopular. ''It's one thing to be straight with people about it; it's another for them to be happy when all of these things actually happen.''

His comments came after a senior minister told Fairfax Media: ''What we've decided as a cabinet is that the first year of government is the year to make all of the difficult decisions and establish the platform for the long-term, and many of these might be unpopular.''