A multi-billion-dollar cost-of-living package will form the centrepiece of Treasurer Josh Frydenberg's fourth budget, as the federal government seeks to woo voters ahead of the upcoming election.
Mr Frydenberg's budget will forecast an improved bottom line, with deficits expected to shrink by tens of billions of dollars, and unemployment predicted to reach 50-year lows.
More Australians are expected to find employment this year, with the jobless rate forecast to drop to 3.75 per cent in the September quarter – the lowest rate since 1974.
To ease pressure on motorists at the bowser, a temporary cut to the fuel excise is set to be unveiled, and one-off cash payments of at least $250 for pensioners and other welfare recipients is also expected to be on offer.
Mr Frydenberg said the improved labour market figures were not a fluke and argued Australia's economic recovery from COVID-19 would be put at risk if Labor was to win the election.
"It has been the result of a clear fiscal strategy to save jobs and drive the unemployment rate to historically low levels, which today, at 4 per cent, is it at its equal lowest level in 48 years.
"With more people in work and less people on welfare, the budget bottom line is improving after providing unprecedented economic support to Australians.
"But there is more to do, and now is not the time to risk the gains we have made in our economic recovery with Labor's higher taxes."
Shadow Treasurer Jim Chalmers on Monday said Labor would not stand in the way of responsible cost-of-living relief for families, but accused the government of desperately "spraying money" to save itself.
"Budgets should help people through difficult and uncertain times, not just help the Coalition through the election."
National security will also be a focus of spending, with the government expected to announce a multi-billion-dollar investment in new cyber and intelligence capabilities.
The ABC understands the money will help bolster Australia's resilience in response to cyber attacks and changing strategic circumstances in the Indo-Pacific region, including China's rapid military expansion and coercive behaviour.
To address the crisis in the aged care workforce, an extra $49.5 million will be provided to subsidise 15,000 vocational education and training places, which the government hopes will encourage more Australians to take up work in the sector.
For months, the industry has been crying out for more government support, including increased wages, to prevent an exodus of staff exhausted by two years operating under pandemic conditions.
In an effort to stop workers leaving the sector, the government in February announced staff would get two bonus payments of $400, but many are still demanding the government support an increase to wages currently being considered by the Fair Work Commission.
Mr Frydenberg said the extra funding builds on the $17.7 billion aged care package announced in last year's budget in response to the damning aged care royal commission.
"In this year's budget we're providing more opportunity for people to enter the aged care workforce as part of our plan for a stronger future," he said.
"To do this we are making available an additional 15,000 subsidised vocational education and training places for those working in or looking to enter the aged care workforce."
