Shadow treasurer Jim Chalmers says last week's federal budget risks leaving too many people behind, even as the economy recovers.
He believes that in a budget that included $100 billion in new spending and a continuing rise towards $1 trillion in government debt, Australians doing it toughest were barely an afterthought.
"It's not a recovery if we go back to the type of inequality and immobility which has characterised the Liberals' eight long years in office," Dr Chalmers will tell an event run by peak welfare group ACOSS.
"It's not a recovery if aspiration is only afforded to those already halfway up the ladder, if real wages go backwards or if disadvantage is left to concentrate in communities and cascade through the generations."
Opposition Leader Anthony Albanese laid out in last week's budget reply speech his $10 billion plan to build 30,000 social and affordable homes over five years through a Housing Australia Future Fund.
"After eight long years of this government, housing affordability has gotten worse and there are more homeless Australians than ever before," Dr Chalmers said.
In government, Labor would also pursue targeted support, or place-based initiatives, for disadvantaged communities.
"Recent studies, inquiries and reports, including important work by the Productivity Commission, have identified place-based solutions as an opportunity to change outcomes and get better bang for buck in social spending," Dr Chalmers says.
"Existing Commonwealth place-initiatives are making a good start, but they need stronger leadership to move from the fringes to the centre of bureaucratic endeavour."
Labor would also seek private capital from socially minded investors, otherwise known as impact investing.
Dr Chalmers said in mature financial markets like the US and UK, impact investors have provided support for social sector organisations to finance housing, community education facilities, health centres and energy projects.
"This is also happening closer to home, and we need to work more closely with our impact investing community to leverage their resources and insights," he says.
"We need to make sure that more Australians can get ahead in the recovery and aren't left behind. That's why the budget was a missed opportunity, and an expensive one at that."
Prime Minister Scott Morrison told reporters in Brisbane the government had been successful in its partnerships with the states and community organisations in delivering affordable housing.
"We invest a great deal when it comes to affordable and social housing initiatives," he said.
He said Labor's plan would get less value for taxpayers' money.
Dr Chalmers will address the National Press Club on Wednesday for the traditional shadow treasurer budget reply speech.
