Treasurer Joe Hockey has signalled a further increase in the pension age, more welfare means testing and co-payments for medical services in a speech in Washington delivered as the budget takes shape.

Quoting an International Monetary Fund report finding that increased spending on healthcare and pensions alone would add $93 billion to government spending by 2030, he said the increase was more than was scheduled to be collected by the entire goods and services tax.

“As the IMF warns, the Australian government must make some difficult decisions,” he said. “We will need to improve competition and efficiency in the delivery of healthcare and we need to ensure that access to the pension system is prioritised for those most vulnerable.”

The Treasurer spoke as Social Services minister Kevin Andrews indicated he would release the interim report on the government's review into the welfare system within weeks.