Australia's government on Tuesday delivers its first budget since coming to power eight months ago and it's tipped to be one of the harshest in years, with a temporary tax hike for high-income earners on the agenda.
Striking a balance between measures that return Australia to a budget surplus while not derailing an economic recovery or fragile consumer sentiment could be the greatest challenge.
"We are mindful about the potential impact from fiscal consolidation and we don't want the outcome to be an [economic] slowdown," Steven Ciobo, parliamentary secretary to the Treasurer, told CNBC.
A temporary income-tax hike, cuts on social services spending and a rise in the retirement age to 70 are all expected to feature in Tuesday's budget. The previous government had already unveiled plans to lift the retirement age to 67 by 2023 from 65 today.