Prime Minister Tony Abbott has promised a responsible but prudent budget in May, although he is reluctant to say whether it will contain tax increases.
The pledge came as the jobless rate unexpectedly jumped to 6.4 per cent, its highest level since August 2002.
It's another blow to the budget in terms of both tax revenue and increased welfare payments.
Before Thursday's monthly job figures were released, Mr Abbott was asked whether he could guarantee there would be no tax increases in the budget.
"This will be a good, responsible budget," he said.
"It will be a prudent and frugal budget, but it will be a budget which acknowledges the Australian people are doing it tough."
The Greens want the government to use the budget to stimulate new industries and boost jobs growth, instead of trying to ram through cuts that hurt Australians.
The Australian Industry Group says the community and political leaders can't ignore longer-term budget realities.
But given the fragility of the economy it was critically important the budget properly addressed an appropriate level of stimulus to boost investment, demand and confidence, it said in a submission.
Ai Group boss Innes Willox says the 1.5 per cent corporate tax rate cut flagged in 2014 should be applied to all business, not just small firms.
"(This) should be complemented by the removal of the levy associated with the now shelved paid parental leave scheme," he said in statement.
The Financial Planning Association, in its submission, said a savings culture must be encouraged to reduce the reliance on social security in retirement.
Financial advice must be made more affordable given only one in five Australians sought such help, it said.
Upfront financial fees should be made tax deductible, similar to how Australians access accountants.
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