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Social Services Minister Scott Morrison has put pressure on the private sector to invest more money and skills into the welfare system, saying the government shouldn't have to shoulder the responsibility on its own.
Speaking at the Australian Council of Social Service conference in Sydney on Friday, Mr Morrison called on the private sector to propose innovative solutions to Australia's growing social need.
"The challenges we face are growing and they sadly always will," he said.
"The government will always do its bit to meet these challenges but the private involvement and the community involvement in meeting these challenges also has to get bigger.
"It's not just about charity, it's about private sector investment in solving social challenges."
He said that investment in social services has to be a "good deal" for private investors, pointing to the success of social benefit bonds in NSW in which private investors have funded programs for vulnerable families and recidivist prisoners.
"We need welfare to be a good deal for the private sector if we want to expand the level of private sector investment in meeting social challenges," he said.
Mr Morrison said Australians could afford to be more philanthropic, with the government "cutting red tape" to encourage more charitable donations.
Social services are the fastest growing area of government spending, accounting for $150 billion a year, or almost one-third of the federal budget.
Greens leader Richard DiNatale said encouraging private sector investment in social services was a way for the government to dodge taking responsibility for vulnerable people.
"The government wants to vacate this space by encouraging private sector involvement," he said. "They are absolving themselves of their responsibility."
He said if the government wanted to tackle income inequality it would start by addressing tax avoidance by multinational companies, negative gearing and superannuation tax concessions.
Opposition Leader Bill Shorten, who also spoke at the conference, said the government should not shift its obligations to the private sector.
"I don't believe that merely encouraging the private sector to do more work should absolve Mr Morrison and Mr Abbott of their responsibilities as leaders of Australia," he said. "The government has a responsibility to ensure there is a strong safety net."
