Rejecting the Tax Working Group's proposals has left the Government's revenue strategy "in tatters", says EY Tax Policy leader David Snell.

Snell says the Government needs use the Budget on May 30 to outline a new direction for tax policy, to hit its own Budget Responsibility targets.

"The Budget Responsibility rules, ensuring a progressive system that's fair balanced and promotes long term sustainability and productivity, we don't have a program that's going to deliver that," he said.

"That was all hinged around a Tax Working Group," Snell said. "So there has to be some steps towards a programme that will

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