Households, people heading towards retirement and superannuants could be affected if the federal government accepts a proposal to boost the budget by billions a year.

As the coalition awaits the findings of its whole-of-government commission of audit to cut expenditure, the Grattan Institute warns tough action must be taken now if Australia is to avoid massive deficits in the future.

Rising health and welfare costs and big-ticket spending could collectively lead to deficits of $60 billion within a decade, it says.

The Grattan Institute says the federal government will need to make a start on the fiscal bill facing the nation when it hands down its first budget in May.

"You have to do something pretty material in your first budget, otherwise people will not take you seriously," institute chief executive John Daley said.