Abbott on attack without an alternative

Tony Abbott has demanded Julia Gillard finalise the details of her carbon tax quickly and call an election immediately in a hostile Budget reply speech without alternatives to the $22 billion in cuts but with a pledge to ease cost of living pressures.

Defying the Prime Minister's challenge to use last night's speech to outline a rival economic blueprint, the Opposition Leader castigated Ms Gillard for betrayal and urged her to save voters from another 2½ years of "indecision and paralysis" by going to the polls.

He borrowed from Liberal great Robert Menzies, portraying himself as the defender of "forgotten families" struggling under financial pressure while the Government wasted their taxes.

"My task tonight is to offer people a new direction which restores their hope in the future," he said.

"It's not to detail an alternative Budget but to set out an alternative vision so that the Australian people can be confident that their government need not always be as weak and directionless as it is right now."

Restating opposition to the mining tax, the carbon tax, the National Broadband Network and means-testing the private health insurance rebate, Mr Abbott restated many policies he took to the polls.

He proposed two new ideas. One aimed at small business and the other at the Government's border protection woes.

He promised a coalition government would reduce small businesses' regulatory costs at least $1 billion a year by getting the Productivity Commission to verify annual red tape reduction targets.

Mr Abbott also proposed mandatory one-year immediatejail terms for people smugglers and 10-years for repeat offenders.

He said spending, debt and taxes would be lower under the coalition because of its proven record of careful economic management.

Mr Abbott presented no alternative savings, nor did he judge any Budget cuts, adding that if Labor achieved its "wafer-thin" surplus in 2012-13, it would be because of China.

He said Ms Gillard's broken promise on a carbon tax left the Government without integrity. She and Greens leader Bob Brown should finalise the carbon tax and its impact, then call an election.

"Otherwise, the next election won't just be a referendum on the carbon tax, it will be a referendum on governments that betray the people," he said.

Finance Minister Penny Wong said Mr Abbott failed as an alternative leader, adding: "You can't run a $1.3 trillion economy on three-word slogans and mindless negativity."