The Australian opposition leader, Brendan Nelson, says the new Labor government's first budget is a fraud on the Australian people.

Dr Nelson has attacked the budget as high spending high taxing and inflationary.

"It seeks to punish those that it does not like and discourage aspiration," he said.

He says a modest but meaningful way of helping Australians would be to cut fuel excise at a cost of $A1.8 billion.

He does not have the numbers to implement that change, but has announced the coalition will use its strength in the senate to block the increased tax on pre-mixed alcohol drinks and overturn the changes lifting the medicare surcharge for those who do not have private health insurance.

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