Treasurer Jim Chalmers drops massive hint Aussies in line for cash handout in Federal Budget: “There will be cost of living relief”

Treasurer Jim Chalmers has promised there will be cost of living relief in Tuesday’s budget, saying “people are hurting and the economy is slowing”.

Jim Chalmers is promising more cost of living relief in Tuesday’s budget including energy bill relief for people “doing it tough” and tax cuts for workers

Speaking in Canberra on Friday, the Treasurer said there was no doubt what was the biggest issue he wanted to address in the budget.

“Cost of living is the main concern that we have in the near term,’’ he said.

“There will be cost of living relief in the budget.

“It won’t be a smash-and-grab budget because people are hurting and the economy is slowing.”

Jim Chalmers is promising more cost of living relief in Tuesday’s budget including energy bill relief. Picture: NCA NewsWire / Martin Ollman

What’s in the budget for workers

The budget will outline previously announced new tax cuts that will kick into gear on July 1, delivering workers more cash in their pay packets every time they are paid.

The Treasurer said the “foundation stone” to cost of living relief was the tax cuts.

“A tax cut for every Australian taxpayer, all 13.6 million Australian taxpayers will get a tax cut to help with the cost of living,’’ the Treasurer said.

“The average tax cut will be something like $36 a week, but there’ll be additional help as well. But there’ll be additional help for people on pensions and payments and fixed incomes.”

More cost of living help for pensioners

But the Treasurer said the budget would go further, offering targeted assistance that will be announced in coming days.

“There will be additional help for people who are doing it tough. And the details of that will be provided on Tuesday.’’ he said.

The Treasurer has not ruled out extending the $500-a-year energy rebate for low-income households for another year.

The payment is due to expire on 30 June and is available to concession card holders and those receiving working-age payments and pensions.

The nature of the extension is not clear and it won’t be the same $500 amount but more assistance is expected.

The budget will also include tax cuts that will kick into gear on July 1. Picture: NCA NewsWire / Martin Ollman

Future is ‘Australia-made’

The Treasurer said the budget will be aimed at fighting inflation without “smashing the economy” and attracting more private investment.

“There will be a premium on responsibility and restraint,” Dr Chalmers said.

“There will be savings in the budget, (and) there will be spending restraint in the budget so that we can get the budget in much better nick to make room for our priorities.

“You’ll see the spending restraint in the real spending growth numbers that we are releasing today.