Josh Frydenberg says it is time to “draw some clear lines in the sand” on government spending, return to normalised budget settings and “hand the baton” to the private sector, as he announces COVID-19 tests will be tax-deductible for workers and businesses, rather than free as Labor has promised.

The federal Treasurer has also commissioned the next scheduled five-yearly review of the economy by the Productivity Commission with a particular focus on the fault lines exposed by the pandemic and how to help governments enhance productivity in the post-pandemic era.