Australian workers can expect fast-tracked personal income tax cuts as the federal budget plots a path out of recession.
Road and rail projects worth $7.5 billion will also be brought forward to get the Australian economy moving again.
The Morrison government is looking to speed up legislated tax cuts to encourage people to start spending.
The relief could also be backdated to add an extra incentive.
“What we want to do is make sure more Australians have more of the money that they earn,” Deputy Prime Minister Michael McCormack told reporters on Monday.
“It’s their money and we want to be able to give them the opportunity and the choice to spend it.
“Yes, if they want to save it, that’s a good thing too.”
Parliament last year passed the coalition’s three-stage tax cut package.
If stage two is brought forward in the budget, people earning up to $90,000 a year will receive an extra $1000.
Workers earning more than $90,000 a year could pocket up to $2500.
It is unclear whether the coalition will also attempt to speed up the third stage, which would benefit high income earners the most.
Mr McCormack is also throwing wads of cash at shovel-ready infrastructure projects to speed up supply chains and create thousands of jobs.
Many projects are already in the planning stage and some are backed by funding commitments from state and territory governments.
“We want to ensure our farmers and miners and other businesses can get their world-class goods to market faster and cheaper,” he told AAP.
“That will happen with better roads and better rail.”
Labor infrastructure spokeswoman Catherine King says it’s unclear how much of the funding is new money, arguing the government is focused on announcements over delivery.
She accused the government of sidelining Infrastructure Australia, which has set its own priority project list.
“They’re not interested in independent advice about where the best projects are, they’re interested in putting infrastructure investments in seats they hold,” Ms King told reporters in Canberra.
The budget is expected to outline an eye-watering budget deficit of more than $210 billion and national debt above $1 trillion.
“The numbers will be bad, objectively, but we know why we’re here,” Finance Minister Mathias Cormann said.
“We were hit by an unexpected coronavirus pandemic, which has had a very severe impact on our economy.”
The budget is not expected to contain an instant cash injection for the ailing aged care sector.
But it will include an initiative designed to give older Australians greater housing security.
Families who build a granny flat for an elderly relative will be spared from capital gains tax if they formalise the living arrangement.
Treasurer Josh Frydenberg said waiving the tax would better protect seniors and save money for mum and dad investors.
The change is due to kick in on July 1 next year, subject to the passage of legislation.