The Abbott government is not backing away from a temporary income tax hike despite calls to dump it even from within the coalition.
Federal cabinet finalised on Wednesday details of next Tuesday's budget, the coalition's first.
One proposal to get the budget back to surplus within the decade is an income tax rise of between one and two percentage points that could kick in as low as $80,000 and raise $2.5 billion in its first year.
Eligibility for pensions and welfare benefits will be tightened, access to the dole for young people restricted and the pension age raised to 70 by 2035.
Finance Minister Mathias Cormann says levies have been used before to balance the books, such as former treasurer Peter Costello's 1996 superannuation tax hike.
"We think it's right now that any effort to repair the budget mess left behind by Labor ought to be spread fairly and equitably across the community and ours will be a temporary measure," Senator Cormann said.
Declining to specifically comment on the tax rise, Prime Minister Tony Abbott said he would be able to "look people in the eye ... and say we are all in this together, we are all doing our bit".
Senator Cormann challenged Labor to get behind the levy.
"Is Bill Shorten really suggesting that pensioners and those in receipt of government allowances should carry the whole burden?" he said.
Some coalition MPs have spoken out against the levy, saying it would break an election promise not to increase taxes.
Brisbane MP Teresa Gambaro said she and other backbenchers had not been consulted.
"We did not go to the Australian people with this levy," Ms Gambaro said.
"I really believe it's a breach of promise and I can't support it."
The levy would hit business confidence and make employers less willing to hire, she said.
Liberal senator Cory Bernardi agreed.
"I hope for the good of the country it will simply disappear," Senator Bernardi said in an email to supporters.
Aged pensioners had called his office in tears because of what they think might be in the budget, Senator Bernardi said.
Senator Cormann said Mr Abbott and his cabinet were listening to the public and MPs and making decisions in the national interest.
"Now what we would ask our colleagues and people across Australia to do is trust us," he said.
Opposition Leader Bill Shorten said Mr Abbott should listen to his colleagues.
"Tony Abbott - if your own colleagues won't wear your broken promises why should Australians put up with your broken promises?"
Mr Shorten, who met with health industry representatives in Melbourne on Wednesday, said a proposed Medicare co-payment was unfair.
"The quality of your health care in Australia should depend on your Medicare card not your credit card," he said.
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