How the federal budget's shaping up

THE MAY 3 FEDERAL BUDGET:

WHAT WE KNOW

* There won't be a fistful of dollars as the government lives up to its promise of living within its means.

* Prudence, fairness and responsibility will be the catchwords.

* Measures will be included to boost jobs and growth as the economy transitions from the mining investment boom.

* The much-touted tax reform package will be included.

WHAT WON'T BE THERE

* Changes to tax breaks for property investors, aka negative gearing.

* Changes to the capital gains tax discount.

* A rise in the rate of GST, or broadening its base.

WHAT WILL BE THERE

* A reduction in the overall tax burden.

* Modest improvement in the budget bottom line.

* "Sensible" tax changes to prevent bracket creep for people earning over $80,000.

* Confirmation the budget repair levy on high-income earners will end on July 1, 2017.

* $5 billion over four years for a subsidised public dental scheme.

* $2.9 billion extra for public hospitals, stemming from COAG agreement.

* $1.2 billion extra from 2018 for schools aimed at literacy and numeracy checks.

* $230 million cyber security strategy.

* $118 million over two years to support disabled children in schools.

* $100 million domestic violence campaign.

* $21 million in health care for chronic conditions.

* Brought-forward upgrade of Adelaide-Tarcoola rail line.

* New drugs on the Pharmaceutical Benefits Scheme.

* Extra aged-care places.

* $1.7 billion for the Sydney Metro project.

* $167.3 million for a regional road freight corridor in NSW.

* $98.4 million to increase the capacity of Sydney's rail network.

* $78.3 million for Parramatta light rail.

* $60 million for "smart motorways" in NSW.

* $52.2 million to clear NSW road pinch points.

* $2.4 billion for Victorian infrastructure including $877.5 million for the Melbourne Metro tunnel and Murray Basin rail, plus money for Monash Freeway, Western Ring Road, regional roads.

* $750.8 million for WA infrastructure including the Forrestfield-Airport link and $260.8 million for the Perth freight link.

* Funding for Queensland's Ipswich Motorway.

* Timetable for phased-in cut to the company tax rate of 30 per cent.

* Further crackdown on multinational tax dodgers.

* $150 million security package including heavily armed security specialists guarding police buildings.

* $5 million annual cut to ABC

HINTED AT

* Paring back superannuation tax concessions for high-income earners by lowering the 30 per cent tax on concessional contributions to $180,000 from $300,000, and helping for those on low incomes.

* Further crackdown on welfare rorters.

* Incentives for state governments to get private sector involved in road, rail and port projects, and unlock land for housing.

* $1 billion for military role in Afghanistan, Iraq and Middle East, plus $1.4 billion in new defence spending.

WHAT VOTERS WANT (Essential Poll)

* Increased health and education funding.

* Personal income tax cuts.

* Reduced superannuation tax concessions for high earners.

* Increased tax on cigarettes.

WHAT BUSINESS WANTS

* The budget back in balance in five years.

* A path to a cut in the company and personal income tax rates.

* Infrastructure planning and skills training.

WHAT THE ECONOMY IS DOING

* Growing at its fastest pace in two years.

* A benign inflation outlook has turned to deflation risking an interest rate cut; unemployment rate remains close to six per cent; wages growth at its slowest in almost two decades.

* Iron ore prices touched $US70 ($A92) per tonne in recent weeks compared to $US39 assumed in the mid-year budget review, a positive for national income.