A rare image has captured the emotion of budget day as Treasurer Josh Frydenberg prepares to release the economic blueprint.
Mr Frydenberg was greeted early on Tuesday morning by parliamentary cleaner Luzis Borges.
Ms Borges handed the Treasurer a big bunch of flowers before the two shared a warm embrace inside Parliament House.
It was a rare role reversal for Mr Frydenberg, who has been handing out budget sweeteners for weeks.
The Treasurer is expected to deliver a massive cost-of-living package in the federal budget.
Earlier, Karl Stefanovic handed the Morrison government a brutal budget day blow, accusing it of spending like “drunken sailors” ahead of the election.
Finance Minister Simon Birmingham was appearing on the Today Show to spruik the government’s economic management ahead of Tuesday evening’s budget.
But a claim from Senator Birmingham that Australians had experienced “lower levels of government spending” caught the Today host off guard.
“Sorry, where do you get lower levels of spending from?” Stefanovic hit back.
“You’re spending like drunken sailors before this election.”
Senator Birmingham insisted there had been a “nominal reduction” in the amount of spending.
“We've been very careful to make sure that we actually squirrelled away and saved some of the dividends of the stronger economy,” he told Nine.
With pandemic aftershocks, the war in Ukraine, and rising inflation impacting Australians’ hip pockets, it’s expected the government will spend up to $2.5bn to address cost-of-living pressures.
Senator Birmingham said the measures, such as a one-off $250 payment to low-income workers and a reduction in the fuel excise, were designed to get Australians through the temporary shocks.
“We will also have a very comprehensive package of measures to support Australians through these temporary shocks,” he told the ABC.
But the Australian Council of Social Services’ Cassandra Goldie said it won’t be enough.
“It's not going to make enough of a difference,” she told Sky News.
“For people on low and modest incomes, we need to lift the income so that you’ve got more cash in your hand and not as a one off payment.
“That's not going to cover the cost of essentials week after week after week.”
Treasurer Josh Frydenberg conceded cost of living pressures was the “number one topic” for Australians.
xjmtzyw“There are real pressures right now on Australians,” he told reporters in Canberra.
“This is a responsible budget with temporary targeted measures designed to ease the cost of living pressures now, but importantly a long-term economic plan to create more jobs.”
The Treasurer’s fourth budget is expected to predict unemployment in Australia could drop to as low as 3.75 per cent by September.
But Deloitte Access Economics partner Chris Richardson said workers shouldn’t expect their wages to rise anytime soon.
“The job news is good for a handful of people. The weak spot is wages,” the budget expert told Sunrise.
“(Employers) have more reasons now to pay higher wages anytime since the mid-1970s. They are absolutely desperate for workers.
“But wage growth in Australia, it lifts slowly. So yes it will improve, just don’t hold your breath.”
Meanwhile, Labor has rubbished the government’s wage growth projection.
“[The Coalition] has made 54 predictions about wages and 52 of them have been wrong. And tonight, of course, they’ll have another prediction,” Anthony Albanese told the Labor caucus.
“But we know that real wages declined by over a percent in the last year. We know the last budget not that long ago, predicted real wages to decline, over the coming four years.”
