Scott Morrison has promised programs in the upcoming federal budget that address rising living costs would be responsible and not just a "blank cheque".
It comes as the prime minister announced a $60 million tourism investment on Tuesday while in Cairns.
The announcement also includes a $45 million cash injection for Tourism Australia to help focus on regional destinations which had been impacted by a decline in international visitors due to the pandemic.
An additional $15 million will go specifically to Tourism Tropical North Queensland in a bid to promote the Great Barrier Reef to visitors.
Ahead of next Tuesday's federal budget, Mr Morrison said he was conscious the impact rising living costs were having on people, particularly at the petrol pump, with fuel rising above $2 a litre.
"We ensure that that support we provide is effective, but it's also responsible," Mr Morrison told reporters on Tuesday.
"I've heard the shadow treasurer today thinking that he's got a blank cheque and he can spend as much as he likes."
The prime minister remains hopeful regions such as far north Queensland would get a flow of backpackers and international tourists back following the easing of COVID-19 restrictions.
He said tourism markets in the United Kingdom, as well as North America, had responded strongly since international borders reopened.
"We can't affect what countries are doing when tourists go back to their country, but we will see this build up. Kiwis will be back in force, no doubt, and it will be great," Mr Morrison said.
"I've got great confidence that over the next couple of years the Australian tourism industry will get back strongly on its feet."
While state leaders such as Victorian Premier Daniel Andrews have backed a proposal to cut the fuel excise in the wake of high fuel prices, Mr Morrison remained tight-lipped on whether such a measure would be included in the budget.
"We are extremely conscious of the impact, particularly of the rise in fuel prices, on the cost of living and the cost of doing business, because fuel prices flow right through," he said.
"(The invasion of Ukraine) is having a big impact on the global economy, and particularly on the price of oil by the barrel, and that is pushing these costs up. Australians understand that."
Meanwhile, shadow treasurer Jim Chalmers will look to hand down his own federal budget before the end of 2022, should Labor win May's election.
Dr Chalmers told a business lobby that Labor would focus on the quality of its spending.
"Our fiscal strategy recognises now is not the time to flick the switch to austerity," Dr Chalmers told the Australian Chamber of Commerce and Industry.
"Nor is it time to spray money around unnecessarily."
The government also announced an additional $50.3 million will be invested in seven priority projects as well as carbon capture and storage infrastructure.
The projects are expected to safeguard against potential energy shortages, keep electricity prices stable and create jobs in regional Australia.
Elsewhere, the government also announced it will spend $480 million, alongside another $270 million from NBN Co, to increase internet speeds and allow more people to connect to the NBN's fixed wireless service in the regions.
