The Federal Opposition says families will be unhappy with tomorrow's federal budget unless the Government overhauls family payments.
The Treasurer, Peter Costello, has indicated families are likely to be benefit from the budget, receiving larger benefit payments and more child-care places.
But Labor's Treasury spokesman Wayne Swan says the changes are insignificant.
Mr Swan says the Government operates one of the most unfriendly tax systems in the world when it comes to families.
"At the core of this problem lies the intersection between the family payments system and the income-tax system, which taxes these people much higher than the top marginal rate of 47 cents, so that when they're out there working, they're losing 60 or 70 cents in every additional dollar they earn. That's not incentive."