"This budget must be fairer that the last one, and the way this can be achieved is by seriously targeting wasteful spending at the top end, including tax expenditures, instead of pursuing policies that shift the burden on to people on the lowest incomes," ACOSS chief executive Dr Cassandra Goldie said.

"When two thirds of the structural budget deficit is due to declining revenues, we need a serious effort to restore revenue to adequate levels. Cutting deep into vital social and economic investments and services is the wrong approach and will cost us more harm in the long run," she said.

The budget submission follows comments from the chief executive of the Business Council of Australia, who this week urged the Abbott government to use its second budget to dramatically reshape Australia's policy direction.

It called for a "10-year plan," to be introduced in stages, that touches everything from health to education and welfare policy.

But ACOSS said the government's second budget must be used to target tax concessions that predominantly benefit people on the highest incomes.