Anthony Albanese says axing $750 million in government grants will go some way to repairing the budget left in a mess by the Liberal-National coalition.
In a speech to the National Press Club in Canberra just three days before the election, Mr Albanese said an incoming Labor government would be fiscally responsible.
While Labor's formal policy costings will be unveiled on Thursday, after days of questioning about their release, Mr Albanese said funding for the community development grants program would be reduced by $350 million.
The opposition leader also promised to return $400 million from the regionalisation fund back to the budget, describing it as an example of "waste and rorts".
"It will be my mission and my responsibility to ensure that every dollar spent in the budget is used to drive the productivity growth we need to pay down Liberal debt," he said in the speech.
"This announcement today is the start of repairing the budget and cleaning up the mess we stand to inherit."
The address came after the latest wage price index figures revealed wages rose 2.4 per cent in the past year, well behind inflation on 5.1 per cent.
The Labor leader acknowledged he would face significant financial challenges should he win, with an expected $1 trillion worth of debt.
"We will inherit the worst set of books of any incoming government since federation," he said.
"This government has borrowed more, taxed more and spent more than Labor and delivered so much less. To build a better future, we need a better budget. Labor is committed to being responsible economic managers."
With the last term in parliament dominated by COVID-19, Mr Albanese pledged an incoming Labor government would learn the lessons from the pandemic.
The opposition leader said the past few years had shown the vulnerabilities in the national economy, such as insecure work and the risk of businesses being exposed to global supply chain shocks.
"These problems are not new, most are the inevitable end result of a decade of cuts, mismanagement and neglect," he said.
"Australian workers are paying the price for a decade of bad policy and economic failures, while Scott Morrison says he should be rewarded with another three years."
While Mr Albanese has advocated for a rise in the minimum wage to keep up with inflation and the cost of living, the opposition leader said he would have a review of whether to increase welfare payments.
He said Labor would look to do what it could in the area within the fiscal limits inherited in government.
"You actually do not need a review to know that someone who is on the pension is doing it tough at the moment," he said.
"Every time a budget is handed down, we will consider what we can do for pensioners and for people on JobSeeker as well."
Mr Albanese used the address to also pitch how he would govern as prime minister, after criticising Mr Morrison's leadership style.
"I know the difference that a good government can make to people's aspirations, it's what brought me here today," he said.
"Some of my views, of course, have changed. When facts change, change your views, as you learn each and every day."
