Jim Chalmers touted this as a cost of living budget, and training is central to Labor's plans to boost jobs to get wages moving again.
In his speech, the treasurer acknowledged that while wages are growing, they are not keeping up with rampant inflation.
Dr Chalmers pointed to a list of government measures already enacted to increase Australian's pay packets, such as pushing for a rise in the minimum wage and hikes for aged care workers.
The government's $4.7 billion cheaper child care pledge will boost participation for women in the workforce, and the economy.
But training is at the heart of Labor's long-term pledge for better jobs and wages.
The Albanese government will fund 480,000 fee-free TAFE places at a cost of $871.7 million over five years, with 180,000 provided next year alone.
Dr Chalmers said priority areas of the economy will be targeted, such as aged care and the digital economy.
A further $485 million over four years will go to 20,000 new university places for students from disadvantaged backgrounds.
"Because no Australian should be denied - by poverty, by postcode, or by lack of privilege - their chance at a better future," he told parliament on Tuesday night.
His first budget forecasts wage growth at 3.75 per cent this financial year and next.
But with inflation tipped to hit 5.75 per cent in 2023-24, it won't be until 2024-25, when CPI dips to 3.5 per cent, that wages finally outstrip cost of living.
"If there's one fact that sums up nearly a decade of wasted opportunities and warped priorities, it is this: Real wages are lower today than they were 10 years ago," Dr Chalmers said.
"It will take time to turn this around, but Australians now know this: Deliberately keeping wages low is no longer federal government policy."
Tuesday's budget confirmed unemployment is forecast to come in at 3.75 per cent this financial year, before rising to 4.5 per cent in 2023-24, where it will remain during the following 12 months, before dropping again to 4.25 in 2025-26.
The permanent migration program will be expanded by 35,000 to 195,000 this financial year, to immediately address the skills shortage holding back the economy, with 90 per cent of places going to skilled applicants.
