Welfare boost unlikely as government strives for surplus

Welfare recipients and others who will not benefit directly from the revamped stage three tax cuts can expect only minor cost-of-living support at next month’s federal budget, as the government strives for a second successive surplus to bolster its electoral prospects, pay down debt and put inflation to the sword.

As Treasurer Jim Chalmers cautioned again that the already announced tax cuts would be the centrepiece of the budget’s cost-of-living package, sources confirmed it was highly unlikely there would be permanent increases to key welfare payments that were the hallmark of last year’s $14.6 billion in measures.