Josh Frydenberg promises cost-of-living relief in the federal budget

Treasurer Josh Frydenberg has made a promise to every Australian as he puts the finishing touches on the federal budget.

Josh Frydenberg has promised the upcoming federal budget will ease cost of living pressures for Australians.

With higher inflation and the Russian invasion of Ukraine driving up the price of petrol and other everyday items, the Treasurer on Thursday said relief was on the way.

“Obviously, it’s been a very trying time for Australians with the pandemic of course and that’s put pressure on the budget,” he told reporters outside Treasury.

“But this budget is all about easing the cost of living for families now.”

A “long term economic plan for jobs”, funding for essential services and increased investment in national security and defence would also be included, he said.

Mr Frydenberg made the remarks as he was photographed with Treasury Secretary Steven Kennedy, with six days to go before he hands down what he hopes will be an election-winning federal budget on Tuesday night.

Treasurer Josh Frydenberg with Treasury Secretary Steven Kennedy ahead of the budget. Picture: NCA NewsWire / Gary Ramage

It could be the Morrison government’s last budget if the coalition is not returned to power at the federal election, which must be held by the end of May.

In recent media interviews, Mr Frydenberg said the budget would include “targeted, proportionate and temporary” relief including the possibility of cash payments for low and middle-income earners.

He insisted on Thursday that the Morrison government would be able to pay off its very high levels of debt and provide cost of living relief at the same time.

Mr Frydenberg has hinted at cost of living relief as commodity prices soar. Picture: NCA NewsWire / Gary Ramage

“Well, what you’ll see in the Budget is a strong and materially improvement to the bottom line. And this is a result of more people being in work and fewer Australians being on welfare,” he said.

While Australia has enjoyed a stronger than expected economic recovery from the pandemic, net debt was at $592.2 billion, or 28.6 per cent of GDP, at the end of last year.

In December, the Morrison government was projecting net debt to rise to $835bn by the 2022-2023 fiscal year, increasing to almost $1tn by the 2024-2025.

The Morrison government has attributed its high levels of debt to the amount of money it spent on its health response and economic stimulus during the pandemic.

Mr Frydenberg on Thursday lauded the work of his government and the Treasury team in managing to drive the unemployment rate down to a 13-year low of 4 per cent.

“To see more than 375,000 additional Australians in work today, than compared to at the start of the (pandemic) crisis is something which is very, very pleasing,” he said.

“But there’s more work to be done. The pandemic is not over. There’s a war in Ukraine and across Europe, and obviously supply chains are very much a big one.”

Australians will have to wait until Tuesday to see what specific measures will be in the budget, as Mr Frydenberg was tight-lipped when asked on Thursday.