Prime Minister Scott Morrison has stressed the latest federal budget was one to help people get through tough times, and not just a means to get the government re-elected.

In his fourth budget, Treasurer Josh Frydenberg promised measures to lower the price of fuel and one-off cash payments to help meet the rising cost of living.

Halving the fuel excise and a providing a one-off $420 tax offset for 10 million low and middle-income earners, Mr Frydenberg on Tuesday boasted Australia’s economic recovery from COVID-19 was “leading the world”.

The prime minister told parliament on Wednesday the budget would enable people to get through uncertain global challenges.

“Because of the disciplined financial management of the government, we could invest to give (people) that shield to protect them from those prices increases,” he said.

“This is a targeted plan, this is a responsible plan, and it’s a temporary measure to deal with the real cost of living pressures that Australians are facing right now.”

The budget includes short-term measures such as a one-off $250 payment to be delivered within weeks to six million pensioners, carers, veterans, job seekers, eligible self-funded retirees and concession card holders.

The treasurer said it was about helping change real people’s lives.

The prime minister also claimed wages would increase in the wake of the budget, following attacks from Labor that average workers would be more than $1300 worse off.

Ahead of Opposition Leader Anthony Albanese’s budget reply speech on Thursday, Mr Morrison used the opportunity to attack the Labor leader’s economic credentials.

“There’s not a small target but a vacant space on economy policy, you can’t find a policy between them,” he said.

The opposition has supported the government’s cost of living measures in the budget to pass the lower house of parliament.

But shadow treasurer Jim Chalmers says the short-term measures in the budget showed the government did not have a plan for the long-term.

“If the government doesn’t want to come up with a plan that extends beyond the election, then (Labor is) happy to fill that void left by the lack of leadership. But first, we intend to pass this cost of living relief,” he said in parliament.

“I think people are seeing through this budget, just like they’re seeing through this prime minister and this treasurer.”

Greens leader Adam Bandt says the budget doesn’t address the structural issues causing cost of living pressures.

“If we want to deal with cost of living pressures, we need to make people’s lives easier, not just for a one-off payment,” he told parliament.

“This budget tells us one thing and it’s that we need to kick this rotten government out.”

Mr Frydenberg said the government was spending responsibly, with the budget deficit of $78 billion in 2022/23 narrowing to $43.1 billion in 2025/26.

Easing the pressure is the forecast jobless rate of 3.75 per cent, which is keeping a lid on welfare spending.

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