Christian aid and humanitarian agencies have expressed their disappointment at the Turnbull Government's decision to cut more than $300 million from Australia's foreign aid in the Federal Budget handed down Tuesday night.

World Vision Australia says the latest $303.3 million cut means that today's levels of foreign aid are less than half the 0.5 per cent of gross national income (GNI) the Coalition had committed to under a bipartisan commitment.

Tim Costello, chief advocate for the organisation, said that while both sides of politics had previously committed to 50 cents in every $100 going to aid, "in the four years since the Coalition took power in 2013, they have systematically cut the aid budget".

"[O]ur ability as one of the richest nations, to assist the world’s most vulnerable people, is less than half what it should have been.” 

The cut will be made through a temporary freeze on aid spending from mid-2018, a move which World Vision says will see Australia's foreign aid "stall" at $4.01 billion and remain static until 2021-22. Australia's aid budget has seen more than $11 billion slashed from it over the last four years.

Caritas Australia also expressed "deep disappointment" at the cuts which the organisation point outs comes at a time when the world is experiencing a range of unprecedented humanitarian crises including more than 20 million people facing starvation in East Africa and Yemen and tens of millions of people fleeing war and persecution in Syria.

Negaya Chorley, the organisation's head of advocacy, said the humanitarian crises, rising inequality and the growing impacts of climate change mean Australian leadership in the sector is more important than ever.

“If people hope to see more peace in our region and the world, then we need to invest in those things that promote peace: health, education, sustainable livelihoods, women’s rights, climate action and strong governance,” she said. “By continually reducing our overseas aid program we undermine regional and global efforts to reduce poverty and promote human flourishing, and limit our collective ability to achieve the Sustainable Development Goals."

Ms Chorley said that given Australia remains one of the wealthiest nations in the OECD, it is "especially disappointing".

"This trend damages our reputation and undermines our ability to be taken seriously as a global leader, it also goes against our values. As a people we believe in fairness, equality and compassion. This budget is neither fair nor compassionate.”