PM tips small business tax cut in budget

Prime Minister Tony Abbott has given clear hints that the upcoming budget will feature tax cuts for small business and a better deal for childcare.

In an address to the Victorian Liberal Party state council, Mr Abbott said the government would continue the task of budget repair.

He said countries, like families and businesses, had to live within their means and the government had already reduced Labor's debt and deficit.

"This year's Budget will be responsible, it will be measured, but it will above all be fair and, yes, there will be tough decisions.... as there must be," he said.

"But there will be good news in this year's Budget, good news for families, with better and more affordable childcare and good news for small business in particular which deserves a tax cut."

Mr Abbott said the Liberal Party were the builder of modern Australian while Labor were the wreckers.

"We are the people who want to get things done," he said.

The budget will be delivered on May 12.