Federal Budget 2019: Australia reacts to Josh Frydenberg's first budget as election looms

Scott Morrison has been quizzed by Leigh Sales on the last-minute decision to extend welfare payments, which has led to an overnight blowout of $80 million. 

Scott Morrison has been quizzed by Leigh Sales on the surprise last-minute decision to extend welfare payments, which led to an overnight blowout of $80 million.

The PM told the 7.30 host the move to extend the welfare payments was "the pragmatic thing to do". 

It was an eventful morning after the night before in Canberra, with Scott Morrison and Bill Shorten locking horns in the  first Question Time since last night's budget.

The PM unleashed a strange rant about Labor's climate policy, calling it the 'Borat Tax' and saying Kazakhstan would like it.

 Scott Morrison and Josh Frydenberg didn’t hold back their verbal punches, with some quips that had the House in stitches.

Morrison unleashed a bizarre rant in response to Opposition Leader Bill Shorten’s new climate policy, calling it the ‘Borat Tax’ after the Sacha Baron Cohen comedy.

He slammed Labor's policy to allow Australian companies to use international carbon credits, saying he was sure Kazakhstan was pleased about it.

"Some may call this a carbon tax, Mr Speaker. I call it the Borat tax, with carbon credits for Kazakhstan,"

The treasurer also had some wit in his own responses using the Get Smart line ‘Missed it by that much’ to jab former Labor treasurer Wayne Swan for under performing in his Budget.

He was responding to Labor's Shadow Treasurer Chris Bowen, who has spent the day attacking the "backflip", saying the Budget was already broken.

Both the PM and treasurer were grilled, as expect in QT today about the swift back down on giving Newstart recipients the one-off energy payment.

Initially they weren’t included in the Budget for this payment, but within 12-hours the government back flipped and coughed up the cash for it.

Frydenberg also copped a lashing at National Press Club earlier today for the same reason. 

He revealed that Morrison, Finance Minister Mathias Cormann and he discussed the payment last night and "thought it was appropriate to extend it".

"It is going to cost the budget an extra $80 million because this payment will be out before the end of the financial year," he said.

"I think it's obviously a prudent decision. It's one that will provide $75 for singles and $125 for couples from this additional energy supplement to acknowledge they do face cost of living pressures and ease some of the energy costs."

On why Newstart recipients weren't originally included, Frydenberg said: "Well, obviously the reason why Newstart was not included in those original suite of payments that people receive ... was because with Newstart, three-quarters of people move off it within 12 months."

"Ninety-nine per cent of people who are on Newstart get another payment. They get a parenting payment or they get a family tax benefit payment, whereas when you're on the Disability Support Pension or on the aged pension, you tend to be on it for longer."

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Originally published as Federal Budget 2019: Australia reacts to Josh Frydenberg's first budget as election looms