Budget ‘not a pre-poll cash splash’, says Treasurer Josh Frydenberg

Treasurer Josh Frydenberg has rejected suggestions that tomorrow’s Budget will be a pre-election “cash splash”, as Labor pledges to match any new spending measures aimed at easing cost-of-living concerns.

With the country’s balance sheet expected to be in the black for the first time in more than a decade, the Federal Government is preparing to hand out billions of dollars in sweeteners before it goes to the polls next month.

Mr Frydenberg yesterday announced an extra $285 million in one-off payments to help four million pensioners and other welfare recipients with energy costs.

He is also expected to fast-track income tax cuts for low and middle-income earners when he hands down his first Budget tomorrow.

But Mr Frydenberg insisted the one-off payments were not reckless.

“This is not a time for cash splashes — this is a time for responsible spending, targeted spending, in key areas that lift the productive capacity of the economy,” he said in the Treasurer’s traditional pre-Budget interview.

“This Budget is focused on growing the economy so we can secure a better future for all Australians and to repair the nation’s finances given we were left with enormous debt by Labor.”

Opposition Leader Bill Shorten labelled the payments a “con” that did not compensate for the lack of an energy policy for the country, while shadow treasurer Chris Bowen said Labor was prepared to match the measures.

“We’ll look at the Budget on Tuesday night and ... obviously, if there’s sensible things which help the cost of living, we’ll support them,” Mr Bowen said.

He said because Labor had made “difficult” decisions on tax reform, the party would be in a position to offer bigger tax cuts and a better surplus.

“We can contemplate the sort of investments in health and education, as well as bigger tax cuts, because we’ve been prepared to make those decisions,” Mr Bowen said.

The Coalition is today expected to unveil more details of its infrastructure spending, after announcing a $1.6 billion boost for road projects in WA last week.