Senior Commonwealth Minister Kevin Andrews has flagged further federal belt-tightening, warning "prudence and discipline" would be needed for years to come.
The Social Services Minister told a Liberal state conference in Victoria on Saturday Labor had "trashed" the Commonwealth's finances, projecting gross national debt would reach $300 billion in December.
He said further details of the nation's financial woes would be revealed in coming weeks.
"Labor have left us with a financial albatross, the full extent of which will be revealed by Joe Hockey in the next few weeks," Mr Andrews said.
"The next few years will require prudence and discipline."
He said the government needed to address long-term structural challenges to ensure improving standards of living for future generations.
In outlining the government's reform agenda, Mr Andrews said the first order of business - the carbon tax repeal Bill - would reduce average house hold bills by $550 but he skipped over changes to its pre-election position on Gonski education funding.
Federal Education Minister Christopher Pyne revealed this week the government would only honour one year of funding agreements entered into with the previous Labor regime.
"Our government will bring you education that focuses on our children and our curriculum," Mr Andrews said on education at the conference.
He also mentioned a need to reform the senate's electoral system.
"One could be forgiven for shaking their head when analysing how the poll for the Upper House unfolded, both in Victoria and across Australia," he said.
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