Broader tax relief and a freezing or cutting of petrol excise are options being considered by the federal government in this month’s budget to defuse voter anger over the rising cost of living.

Although the government intended to extend for another year the $8 billion-a-year Low and Middle Income Tax Offset, an end-of-year rebate of up to $1080 for low and middle income earners, there is a growing school of thought within the government to scrap the extension and spend the money up front on relief.