Labor policies create 'working poor', says Dutton

Opposition Leader Peter Dutton has accused the Albanese government of turning Australia's middle class into the "working poor".

Mr Dutton will give his federal budget reply speech in parliament on Thursday night, and is expected to criticise Labor's migration settings and parts of its cost-of-living package. 

He said Australians were facing a tax hike from July, with the offset for lower- and middle-income earners not being extended by the government. 

"You've got a situation that Labor's created over the course of the last 12 months where I think we've got a middle class of Australians, a working poor that Labor's created," Mr Dutton told Seven.

"(They are) people who are working their guts out, going to work, and just can't keep their heads above water."

He said the government needed to spend the money it raised from workers and businesses wisely.

"The Australian taxpayer is very happy to support those people who are in need, but you've got to help those that are most deserving," Mr Dutton told 2GB radio. 

"It's not for people in a situation where they can get a job but they refuse to take a job." 

The opposition leader has signalled support for the planned expanded access to GP bulk-billing and energy bill relief.

Mr Dutton used Question Time in parliament on Wednesday to quiz Prime Minister Anthony Albanese about the impact of 1.5 million migrants over five years on city congestion and housing.

Treasurer Jim Chalmers has rejected claims his budget will prolong inflation and contribute to interest rates remaining higher.

Dr Chalmers called on Mr Dutton to make clear his position on the $14.6 billion cost-of-living package.

"If he thinks people need no help with the cost of living he should say so," the treasurer told ABC radio on Thursday.

Asked about the impact of migration, Dr Chalmers said the population forecasts were smaller than what they were a few years ago.

"That completely torpedoes this ridiculous campaign from Peter Dutton and others about migration," he said.

"They (coalition) were forecasting a much bigger Australia in their own budget."

Dr Chalmers said the government had policies including a new tax break for build-to-rent properties, in addition to a multibillion dollar infrastructure pipeline to deliver the services and facilities communities need. 

He doubled down on not making any changes to the planned stage-three tax cuts. 

Mr Dutton is also expected to zero in on a coalition claim that Labor has added $25,000 to the average family's costs since ousting the Morrison government in May last year.

The figure includes 10 interest rate rises, grocery and power bill hikes, and the impact of tax changes.