Tax cut, balanced books boost poll hopes

The Turnbull government will splash the benefits of a booming economy on a $1000-a-year tax break for working couples ahead of a federal election.

Treasurer Scott Morrison's third budget on Tuesday night set out a seven-year plan to flatten personal tax rates, which would put 94 per cent of Australians on a 32.5 per cent or less rate in 2024.

As well seniors will be able to keep more of what they earn on the side, be better able to access equity in their homes, and face a shorter waiting list if they are seeking care at home.

Mr Morrison, who also announced a return to surplus a year early, justified the long time-frame for tax cuts as being what is affordable while keeping the budget on track.

"Our record of financial responsibility means that under our plan Australians can plan for their future with confidence," Mr Morrison told parliament.

The tax office will help you find your lost super and exit fees will be banned when changing superannuation funds.

Extra money to pay for $75 billion in road and rail projects over 10 years and other big ticket items will come from Asia's insatiable appetite for coal and iron ore, as well as cracking down on multinationals and the cash economy.

Small businesses which employ about 3.3 million Australians will get an injection of life from a corporate tax cut and a year-long extension of the instant asset write-off.

A new public hospitals agreement will deliver an extra $30 billion to 2024, while medicines to treat breast cancer and multiple sclerosis will be made cheaper.

Schools are set to benefit from an extra $24.5 billion under the so-called Gonski 2.0 needs-based funding package, while a new childcare system starts on July 2.

There's good news on the pay front, with wage growth forecast to pick up from 2.25 per cent to 3.25 per cent in 2020, as the economy strengthens and jobs grow by at least 200,000.