Currently, the Government spends about $3.5 billion annually on Family Tax Benefit B payments.

Federal Finance Minister Lindsay Tanner, who heads the Prime Minister's razor gang, has told The 7.30 Report it is one area of Government spending where significant savings can be made.

"We have undertaken to put a means test at a very generous level for Tax Benefit B," he said.

"That will provide some savings. Obviously there's a whole lot of other possibilities and I'm not going to run through them and where we might go.

"Everything is going to be considered. We're looking for efficiencies in how Government operates."

However, he played coy as to what other cost-cutting possibilities there may be.

"We're not going to be ruling things out here or there, we'll be sticking to election promises," he said.

"That will obviously guide what we do, but we've got to look at everything.

"We've got to go right across Government."

With the Budget due in May, Opposition Leader Brendan Nelson has accused the Government of "L-Plate economics", saying time was running out.

"At a time when stock markets here and around the world are facing daily turbulence, business and Australian families deserve a consistent voice from the team in charge of their financial security," he said.
Source: By Australian Broadcasting Corporation