The Albanese government has unveiled a $15 billion package of welfare increases, bulk-billing incentives and energy bill discounts, in a budget it says is not inflationary, but paves the way for more tax hikes and spending restraint.

Handing down his second budget, Treasurer Jim Chalmers warned there would be more “difficult decisions”, as he confirmed tax hikes to help fund a cost of living package, which includes $9.5 billion in welfare increases, $3.5 billion in Medicare incentives to lift the rate of bulk-billing, and $3 billion in one-off energy bill discounts.