Australian Labor leader Bill Shorten says the federal budget delivers a tax cut for millionaires and a tax hike for every working Australian.

The Australian government has removed the deficit levy from high-income earners, but will lift the Medicare levy on all workers by 0.5 percentage points in 2019.

At the same time, schools will face a A$22 billion ($23.4b) easing in funding and the Medicare GP rebate freeze won't come off in its entirety.

"Malcolm Turnbull's budget locks in a $16,000 tax cut for people making $1,000,000 a year, but he's cutting schools and Medicare," Mr Shorten said.

Advertisement

Shadow treasurer Chris Bowen said the budget failed the jobs test as unemployment was forecast to rise.

The deficit was 10 times bigger than was predicted in the first coalition government budget and growth was down.