Treasury Secretary Steven Kennedy has urged the Albanese government to control “significant spending pressures” on disabilities and aged care, while suggesting a crackdown on tax breaks worth billions of dollars to the wealthy and companies.

Dr Kennedy issued a frank warning that the federal budget must be repaired to manage inflation risks and rebuild fiscal buffers for future economic downturns. He said that solely relying on economic growth to reduce the $1 trillion debt, as both sides of politics flagged during the election, was no longer the “prudent” course.