The Morrison government has given itself licence for a big spending budget focused on job creation, saying an unemployment rate with a “four in front of it” was needed to lift wages and inflation, as well as drive down debt and deficit.

In a speech recalibrating the government’s fiscal policy ahead of the May 11 federal budget, Treasurer Josh Frydenberg will delay plans – likely beyond the election – to focus squarely on budget repair once the unemployment rate fell to between 5.25 per cent and 5.5 per cent.