AAP

Treasurer Wayne Swan's budget Robin Hood act hasn't won over all the welfare groups trying to help people struggling to stay above the poverty line.

Families feeling the pinch from the cost of living will receive some extra pocket money from the federal budget but welfare recipients received only a modest boost.

Treasurer Wayne Swan has announced the government will spread the benefits of the mining boom with a boost to the Family Tax Benefit Part A from July next year.

"We understand the pressures Australians face paying for electricity, housing, groceries, petrol or even a simple family outing," Mr Swan said.

An estimated 1.1 million families receiving the maximum amount will receive a windfall of $600 if they have two or more children and $300 if they have one child.

The 460,000 families receiving the base rate will pocket an extra $200 a year for two or more children and $100 for a single child.

The Schoolkids bonus will be a paperwork free payment that will give 1.3 million families assistance with education costs.

Most families will receive $410 for primary school kids and $820 for high school students.

The bonus replaces the education tax refund that required families to collect receipts.

Welfare organisations had hoped the government would increase the Newstart Allowance by $50 a week to help jobseekers struggling under the poverty line.

The federal government rejected those calls because revenue is tight but welfare recipients will benefit from a new Supplementary Allowance.

The allowance will help people on Youth Allowance, Newstart and Parenting Payments with the cost of essential bills.

Singles will receive $210 a year and couples $350, in two instalments.

St Vincent de Paul Society chief executive John Falzon said there was "nothing wrong with bringing home the bacon for middle Australians but those living at the rough end of struggle street are surviving on baked beans alone".

Dr Falzon said the budget confirmed that both sides of politics agreed on the existence of an undeserving poor.

"Their message is if you're poor, you're just not trying hard enough," he said.

But you don't build people up by putting them down, or help people find work by forcing them into poverty, he added.

ACOSS chief Dr Cassandra Goldie was disappointed the Newstart Allowance did not get a $50 a week boost, but hailed the modest $4 per week increase.

"That $4 we see as a small sign of good faith in this government that the Newstart allowance is inadequate," she told reporters.

UnitingCare Australia spokeswoman Lin Hatfield Dodds echoed her comments on Newstart.

"We hope it's a down payment on a decent increase in unemployment benefits in next year's budget," she said.

Mission Australia chief Toby Hall fears the 2020 goal to halve homelessness may have lost momentum.

"There's an air of complacency out there towards reaching the goals of reducing homelessness," he said.

People who lose their jobs will be able to access welfare payments faster, with a doubling of the liquid asset test threshold to $5000 for singles and $10,000 for families.

The government also reaffirmed its decision to make cuts to parenting payments, to save $700 million.

Parents will be transiting to Newstart Allowance and stop receiving the payment when their youngest child turns six, or when their youngest turns eight if they are a single parent.

The Salvation Army said there was no real relief in the budget for the most disadvantaged Australians and predicted demand for its services would increase among low-income households.

"While the lack of housing affordability continues and housing stress has become an accepted part of people's lives, those on the nation's lowest incomes need our help more than ever," Major Paul Moulds, who leads the Salvation Army's social program, said in a statement.

He said the new Supplementary Allowance provided a payment of just over $100 for singles and $175 for couples twice a year, but it didn't go far enough.

"We anticipate that not addressing the income support needs of those on the lowest incomes will increase demand on our services," Maj Moulds said.