What we know and don't about the budget

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.

* Will include the much-touted tax reform package.

WHAT WON'T BE THERE

* Personal income tax cuts, despite concerns wage inflation is pushing middle-income earners into the second-highest tax bracket.

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

* A rise in the GST rate.

WHAT WILL BE THERE

* Signs of modest improvement in the bottom line.

HINTED AT

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

* Paring back superannuation tax concessions for high-income earners.

* Possible tobacco excise increase, mimicking Labor's proposal.

WHAT THE ECONOMY IS DOING

* Growing at its fastest pace in two years.

* Benign inflation outlook; unemployment rate remaining close to six per cent; wages growth at its slowest in almost two decades.

* Iron ore prices comfortably above $US50 per tonne compared to just $US39 assumed in the mid-year budget review.