AMA president Mukesh Haikerwal says other than the almost A$2 billion for mental health previously announced by the government, the budget is disappointing.
"So much could have been achieved with a big budget surplus, especially in indigenous health, and in combating obesity," Dr Haikerwal said.
"With the budget surplus screaming out for big ticket items we find ourselves in the health policy two-dollar shop.
"This budget has avoided tackling the important infrastructure needs to set the health system up for the needs of the ageing population and the next generation."
Salvos encouraged
The Salvation Army overall was encouraged by many aspects of the budget, although much more analysis needed to be done, its spokesman said.
Major Brad Halse said the Salvation Army believed tax cuts at the bottom end would help.
"We are particularly encouraged by the additional mental health spending, again with the caveat that there needs to be consideration as to how this will be implemented," he said.
The Australian Council of Social Services (ACOSS) says that low-income Australians have missed out in this year's budget.
Mentally ill heard
Catholic Health Australia backed the Salvation Army’s comments saying that the voice of the mentally ill had been heard in the budget.
The government had put mental health first, medical research second and preventative health care third, Catholic Health Australia chief executive Francis Sullivan said.
"They've put money where their mouth is," he told reporters. "The voice of the mentally ill has been heard. This is a good health budget. It's practical, it's investing in people. It's to be supported."
Mr Sullivan said he also supported the tax cuts. "This is what ordinary families needed because state Labor governments are raising charges far beyond household budgets."
ACOSS critical
ACOSS president Lin Hatfield Dodds said even after tax cuts announced in the budget, disadvantaged Australians would be denied the chance to enjoy Australia's strong economic growth.
"In these strong economic times the government had a golden opportunity to spend tonight to ensure that vulnerable Australians and struggling Australians have a fair go," Ms Hatfield Dodds said.
"While there was some focus on areas of disadvantage it simply wasn't enough." She said childcare places announced were not enough to meet demand.