Rising grocery prices 'cripple families'

According to the Australian Bureau of Statistics, the price of basic necessities has jumped almost 10 per cent over the past two years.

Figures show the price of potatoes has soared by 46 per cent, while the cost of toilet paper has more than doubled.

"While food prices have risen an average of four per cent over the past decade, last year they climbed more than nine per cent, the second highest figure among the 30 OECD countries," Senator Fielding said in a statement.

He said it was the federal government's responsibility to help families make ends meet.

"The government must give special help to families in the budget to help them battling with escalating costs," Senator Fielding said.

"Families have the most important job of raising kids which is by far the biggest investment Australians can make in their own future."

Grocery prices were not the only consumables making life hard for families, Senator Fielding said, with the cost of fuel continuing to top $1.20 a litre.

Senator Fielding said families would feel relief at the bowser if the government cut petrol tax by 10 cents a litre.

He said the government should make a number of other changes in the upcoming budget to help families, including lifting the tax free threshold for all taxpayers from $6,000 to $8,000 this year.

He said a further $1,000 increase in the tax free threshold for each dependent child would also greatly assist families.

Senator Fielding said Australians needed a tax policy that put families first.