Federal budget includes power bill relief for every household

Tonight's federal budget includes power bill relief for one million small businesses and every household in the country.

Previous programs have been targeted or means tested.

There is also be an increase in Commonwealth Rent Assistance, for those who are eligible to receive the program.

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These two measures are predicted to lower headline inflation by half a percentage point in the next financial year.

That will speed up the return to the target range, however, there's no guarantee tonight that the Reserve Bank will see this as the silver bullet to lower interest rates before Christmas, Nine's Chief Political Editor Charles Croucher warned.

Tonight's budget has forecast a $9.3 billion surplus this financial year, a second consecutive surplus and $23.2 billion better than was predicted last year.

"The biggest driver of this second surplus is not commodity prices - it's the resilience of the labour market," Treasurer Jim Chalmers said earlier today.

Additionally, the revised stage 3 tax cuts will begin in July, when a worker on $70,000 a year $27.50 better off a week.

Australians on $120,000 will be $51.50 better off.