Tough budget needed: PM

Prime Minister Tony Abbott says no government likes making difficult budget decisions, and neither do voters like the consequences.

Prime Minister Tony Abbott has warned Australia will be doomed to many years of economic problems if his government doesn't hand down a tough budget next week.

A voter backlash is mounting over speculation the government will introduce a temporary levy on wages of more than $80,000 a year to pay down debt.

Mr Abbott wouldn't comment, saying the government would bring down a budget on May 13 what was "fair".

"You've just got to make hard decisions at a time like this, otherwise our country is doomed to years of economic stagnation," he told the Nine Network on Monday.

The government's fundamental election promise was to get commonwealth debt under control, Mr Abbott said.

"No-one likes difficult decisions, governments don't like taking difficult decisions and voters don't like the consequences," he said.

The government has reportedly avoided a clash with big miners by reassuring the resources industry it won't touch the diesel fuel rebate in the budget.

Leaked correspondence between top mining executives obtained by the ABC warns there could be "profound" political impact from any cuts to the rebate, which could raise billions of dollars a year.

A spokeswoman for Treasurer Joe Hockey told AAP the government had no comment.

Nationals Senator John Williams is confident the rebate will remain unchanged.

"Information has been given to me ... by people I won't mention," he told ABC radio.

Senator Williams said the rebate was essential for farmers and changes could push some into bankruptcy.

Meanwhile, voters are also warning the coalition not to change the universal health care system Medicare or raise the retirement age.

More than half of voters are opposed to the introduction of a $6 co-payment to visit their GP, a Galaxy poll commissioned by The Daily Telegraph and published on Monday.

Even more are opposed to the idea of working longer into retirement, with 69 per cent warning the government against its plans to lift the pension age.

The poll comes after Sunday's Galaxy poll showing 72 per cent of voters would view a debt tax as a broken election promise.

A Seven Network ReachTel poll released on Sunday night found the government was behind the Labor opposition on a two-party preferred basis, 46 per cent to 54 per cent.


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Source: AAP


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