(Adds prime minister response, inflation warnings)

By Rob Taylor

CANBERRA, Feb 1 (Reuters) - Australia's new centre-left government has been told to embark on a fresh wave of economic reform, with treasury officials warning of the dangers posed by rising inflation and climate change in a confidential briefing.

Treasury's secret report to incoming governments, known as the Red Book, told Prime Minister Kevin Rudd that Labor faced a "pivotal economic juncture", according to a copy obtained by Australian television.

The briefing identified climate change as "the single most pressing environmental, economic and social challenge" the country faced and urged Rudd's government to recognise the global shift in power to India and China.

It urged the government to demonstrate budget discipline and control spending in order to establish its economic credibility, due to rising inflationary pressures. Official data found inflation at its strongest in 16 years in the December quarter.

"Inflationary pressures are building, however, reflecting an economy close to capacity with strong underlying demand," the Treasury briefing said.

"At the same time, the global economic outlook has become more uncertain, with the risk of a sharper than expected slowdown in the US economy."

The Red Book is not normally made public, but was obtained by Australia's Seven television network after a freedom of information challenge. Large sections which detail options for reform were kept secret, however.

Australia's economic boom, now in its 16th year, was likely to remain strong over the next two years, the document said, despite the risk of a slowdown in the United States. It predicted global commodity prices would remain high "for some time yet".

Treasury also warned the 21 million population was ageing and called for economic reforms similar in scale to those of the 1980s and early 1990s, when the local dollar was floated.

Rudd on Friday committed his government to contain spending when it releases its national budget on May 13 in a bid to fight growing inflationary pressures.

"We have an overriding national economic responsibility not only to declare it (inflation) as public enemy number one, but to launch a coherent fight against it," Rudd told Australian radio, adding the budget would have a surplus of about A$18 billion.

Rudd two weeks ago unveiled a plan to fight inflation, announcing he would deliver budgets with a surplus of about 1.5 percent of gross domestic product, boost workforce skills and improve infrastructure.

Australia's government has said it should be able to head off any global downturn thanks to booming demand from China for commodity exports.

Expectations are rising of another interest rate rise when Australia's central bank meets next Tuesday, after the release of figures showing Australians are borrowing at the fastest rate since 1989, with households owing a trillion dollars in debt.

The Treasury warning came as the U.S. Federal Reserve Bank slashed its key lending rate by 50 basis points, following a 75 basis point cut just eight days before, to head off recession in the world's largest economy. (Additional reporting by James Grubel; Editing by David Fox)

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