Budget 2016: Tax, small business and superannuation reforms

Treasurer Scott Morrison has unveiled the government's "ten year enterprise tax plan", which he says is aimed at boosting investment, supporting existing jobs and creating new ones, increasing wages, and combating tax avoidance by multinational corporations.

The tax rate for small and medium businesses has again been cut, this time to 27.5 percent, with the turnover threshold increasing year by year. By 2026-27, all businesses will pay a flat rate of 25 percent.

As expected, there was no change to negative gearing, capital gains tax or GST policy in the budget.

The budget measures were announced as the Reserve Bank of Australia delivered an official cash interest rate cut to a record low 1.75 per cent, elevating fears the federal government isn't doing enough to lift jobs and growth.

"This budget is an economic plan - it's not just another budget," Mr Morrison told parliament.

The budget forecasts a $37.1 billion deficit for 2016/17 - a blowout from the $33.7 billion anticipated in December.

However, a projected jobless rate of 5.5 per cent is an improvement.

A rise in the middle-income tax bracket from $80,000 to $87,000 a year will give some of those taxpayers an extra $315 a year, but there's no pay packet relief for people earning under that threshold.

Mr Morrison argued Australians had moved on from the days of seeing budgets as "winners and losers".

Generous superannuation tax breaks will be closed off from July 1, 2017, affecting about four per cent of Australians each year.

These will include the introduction of a transfer balance cap of $1.6 million on amounts moving into the tax-free retirement phase.

At the same time, about two million low earners would benefit from a superannuation tax offset.

Shadow treasurer Chris Bowen damned the budget saying it delivered a tax cut for big business and the rich at the expense of families.

A person earning $1 million a year would get a $16,715 tax cut - as the deficit levy is removed - while three-quarters of Australian taxpayers would get nothing.

Mr Bowen pledged to reinstate the two per cent deficit levy on high income earners if Labor wins government in July, when the federal election is expected to be held.

A couple with a single income of $65,000 with three children in primary school were $3034 worse off a year.

"The difference between Labor and Liberal could not be more stark - we'll put people first, while the 2016 budget has shown the Liberal party will look after high income earners and multinationals," Mr Bowen said.

With AAP