Australia's peak welfare body is urging the government to spend more money on social services, rather than tax cuts, in next month's federal Budget.
A report by the Australian Council for Social Services says organisations turned away 29 per cent more people eligible for a service in 2004-5 compared to the previous year.
ACOSS' director, Andrew Johnson, says both federal and state governments should invest money in community services.
"Due to a lack of resources 132-thousand people eligible for services could not get assistance from community services last year."
"Some services such as housing assistance and legal services really struggle to meet demand."