Social welfare groups have handed the government a plan to save the budget almost $10 billion, some of which they want pumped back into services.
The major proposals made by the Australian Council of Social Service (ACOSS) include scrapping the private health insurance rebate and reining in negative gearing incentives.
Their intervention in the tax debate comes as the government looks at possible changes to negative gearing, after Labor's proposal to apply the incentive to new properties only.
In its pre-budget submission released on Tuesday, ACOSS calls for negative gearing deductions to be limited for investors of property and shares, and the money used to build affordable houses through a new tax incentive.
It also wants "wasteful" expenses such as the 30 per cent private health insurance rebate removed to free up $6.6 billion for public hospital and community health services spending.
Private trusts would be taxed as companies and income retained in private companies taxed at the top rate.
"Inequitable" capital gains tax concessions for small business, which allow some to avoid paying tax altogether, would also be reined in.
ACOSS chief executive Cassandra Goldie urged the government to look at tax concessions and not be discouraged by vested interests who'll oppose it.
"We need to be courageous," she told the ABC.
And the tax treatment of superannuation fund earnings would be tightened to increase the numbers of those aged over 65 paying income tax if they can afford to do so.
On its wishlist is a rise in unemployment benefits from the present $37 a day, and funds for the "ineffective" work-for-the-dole scheme put into better programs.
All up, the changes would save the budget $9.5 billion a year in 2017/18.
