The Abbott government planned to meet head-on Labor's charge that its budget is unfair, Finance Minister Mathias Cormann said, adding it was unfair to rob our children and grandchildren of their opportunities to pay for today's lifestyle.

But  Mr Reith said unfair industrial relations laws were stopping young people from getting jobs and he criticised Prime Minister Tony Abbott for not doing anything to solve the problem.

With a $30 billion hangover from the last budget in unpassed measures, Senator Cormann has confirmed work on this year's budget had already begun.

Labor opposed a  range of unpopular measures from last year's budget, such as uncapping university fees and the revised $5 tax to visit the doctor, saying they hit society's poorest unfairly.

But Senator Cormann warned of the unfairness of expecting the next generations  to fund today's lifestyle and said they would face higher taxes and deeper spending cuts if the debt and deficit were not repaired.

"Bill Shorten wants our children and grandchildren to pay for our lifestyle today and lessen their future opportunities in the process. We think that's unfair," he said.

"No parent would keep putting a chunk of their grocery bill on to their credit card every week through their whole life and ask their kids to pay it off after they go.

"What is fair is for every generation to take responsibility for its own day-to-day living expenses and to do everything we can to leave our country in better, stronger shape than we found it."

It will be up to the new-look Expenditure Review Committee, or razor-gang as it is colloquially known, which now includes Coalition hardman Scott Morrison, to find new savings in the lead-up to the government's second budget, due in May.

But it is unlikely to be all bad news. The government will unveil a families package in the new year that is likely to include an overhaul of the childcare system and could involve sweeteners aimed at making it more flexible and modern for working parents. Savings from a pared-back version of Mr Abbott's internally loathed $5.5 billion paid parental leave scheme will be redirected into childcare.

When Labor left office the deficit for 2014-15 was predicted to be $24 billion, the pre-election economic outlook showed.  But that figure had blown out to $40 billion at the time of the mid-year budget update, delivered in December. Treasury projects the budget will remain in deficit until the end of the decade.

Mr Reith said the government should also be looking at the fairness for younger people who couldn't find a job and attacked Mr Abbott for procrastinating.

"Tony was the one who said to the business community give me practical examples and he hasn't lifted a finger," he said.

The government had one shot to reform labour laws and the Abbott government's shot hadn't been a shot worth taking, he said.

He urged the Coalition to make youth unemployment a spearhead for a wider campaign on industrial relations reform and said the government had an obligation to address the issue, out of fairness to the country's youth.

Employment Minister Eric Abetz said he agreed that youth unemployment is "unacceptably high".

"The Government believes the best form of welfare is a job," he said.

Senator Abetz said the Government is working to "reboot the economy" to provide opportunities for young Australians, listing Work for the Dole and several training and relocation grants as practical ways the government was attempting to get young people into work.

Mr Abbott has promised repeatedly not to change penalty rates but has asked the Productivity Commission review to examine Australia's industrial relations laws and report back in November 2015.

Mr Reith accused Mr Abbott of having "sat on" the commission, which he said was obviously a ploy to put off the decision-making until the last moment.