Why you could be about to get richer
PERSONAL income tax cuts, more money to cut aged care waiting lists and a big spend on road and rail will be key elements of the federal budget to be delivered on Tuesday.
In delivering his third budget, Treasurer Scott Morrison's will have one eye on the economy and another on the polls.
A federal election is due by May 2019 but is more likely to be held well before that, depending on the success of Malcolm Turnbull's freshened-up economic message.
"Responsible budget management and strong economic leadership is vital because that is what ensures that we have more money in the pockets of hardworking Australians, we guarantee and deliver essential services and infrastructure and the government lives within its means," Mr Turnbull said on Thursday.
Low and middle income earners are expected to benefit from lifts to tax thresholds while high earners will have the 2 per cent deficit levy taken off.
There have also been reports the energy supplement - initially paid as carbon tax compensation - will be kept in place, despite the government wanting to axe it as a budget saving.
More home care packages will ease pressure on the 100,000 older Australians on the waiting list.
The aged care sector is also hopeful of a generous response to two major reviews, to improve not only the quantity but quality and oversight of services.
With the states and territories having pleaded with Canberra for extra road and rail funding, the infrastructure budget is set to top $75 billion over the decade.
A $5 billion Melbourne airport rail link and $1 billion M1 upgrade between Brisbane and Gold Coast will be major projects giving funding. Having complained about its GST share, Western Australia will score a $3.2 billion road and rail package.
Mr Morrison will reveal how he intends to fund the National Disability Insurance Scheme, having ditched the proposed 0.5 per cent hike in the Medicare levy. Extra jobs and business activity has bolstered tax receipts by at least $4.8 billion more than estimated in the mid-year review in December.
The budget papers are expected to show a return to the black in 2021. In a bid to quell fears in the Coalition's political base, new laws will guarantee tax rates and rules regarding superannuation and the limit on the maximum number of members in self-managed super funds will be expanded from four to six.
Corporate tax cuts from 30 per cent to 25 per cent will also remain on the books, despite the current Senate block, and an instant asset write-off for small business will be extended.
Hospitals, cancer scans, drug addiction and mental health services are also set to be funded.
In the environmental sphere, clarity is expected on the future of the Emissions Reduction Fund - which pays for so-called "direct action" climate projects - and $500 million will go to a Great Barrier Reef rescue plan.