Treasurer Jim Chalmers will frame the upcoming federal budget as evidence the economy is “turning the corner” as the Albanese government prepares for the election.
It comes as the federal budget has been forecast to remain in deficits for more than a decade amid the longest per capita recession on record.
Mr Chalmers will deliver a pre-budget speech at the Queensland Media Club in Brisbane on Tuesday, setting the stage for Labor’s final economic pitch ahead of the election, to be held before May 17.
The speech is expected to outline the financial impact of ex-Tropical Cyclone Alfred, detailing recovery costs that will be included in the federal budget, to be handed down on March 25.
The budget will also assess potential economic consequences of rising trade tensions with the United States after President Donald Trump rejected tariff exemptions for Australia.
Mr Chalmers’ speech will highlight key budget priorities, many of which have already been announced in the lead-up to the election.
Over recent months, the Albanese government has rolled out a series of major spending commitments, raising concerns about the forthcoming decade of budget deficits.
The government’s commitments have included $16 billion for student debt cuts, $8.5 billion for medicare, $7.2 billion for Bruce Highway upgrades and $3 billion for NBN upgrades.
Some spending will be held back for the election campaign, with expectations that many measures will be classified as “decisions taken but not yet announced” when the budget is handed down.
One key measure anticipated in the budget is an increase and extension of the $300 energy rebate for households.
This follows last week’s news that electricity bills will rise by up to nine per cent, positioning the government to offer relief amid cost-of-living pressures.
After overseeing power prices rises as high as $1,000, Energy Minister Chris Bowen flagged the possibility of further energy relief on Thursday.
“We will always consider what more can be done. There’s a budget coming soon and we’ll continue that approach of considering what more we can do,” Mr Bowen said.
The Albanese government was then blamed for contributing to power prices hikes amid concerns about its commitment to an “all-renewables” approach to the energy grid.
The cost of living has been far and away the most important issue heading into the federal election as the price of energy continues to trouble voters.
While Prime Minister Anthony Albanese has been rumoured to call the election immediately after the budget, there remains the likely possibility he will wait and call an election for around May 10.
Opposition Leader Peter Dutton will respond to the budget with a reply speech, where he is expected to make at least one major policy announcement.
However, the Coalition is largely holding back key policy details until closer to election day.
