The federal budget to be released tonight will set up an election clash on jobs and wages.

The fuel excise is likely to be temporarily halved in a bid to reduce soaring petrol prices.

Meanwhile, pensioners and low income earners are expected to get a one-off payment to deal with the high cost of living.

The budget will show debt and deficit is coming down with the unemployment rate set to hit 48-year low.

While wages are expected to rise, they still may not be able to keep up with inflation.

Nine News political editor Chris Uhlmann told Liam Bartlett “all the good bits” of the budget are already known.

“The government usually does try to hold something back,” he said.

“I think the other thing we’ll be looking for this evening is what happens to budget deficit.”

Press PLAY below to hear the full preview of what to expect from tonight’s budget 

Image: Getty