Finance Minister Matthias Cormann has confirmed that Tuesday night’s budget announcement will include an increased tobacco excise.
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Mr Cormann said there will be an annual tax increase of 12.5 per cent over a four year period.
This means a packet of cigarettes could cost $40 by the year 2020.
Leaks have also suggested that the budget could include a tax cut for people earning over $80,000 a year.
Proposed changes to superannuation have also been reported, including a 30 per cent rate on superannuation contributions to cut in at $180,000 rather than the current $300,000, a possible cut to the current annual cap of $180,000 on non-concessional super contributions and assistance for low income earners and mothers returning to work.
An extra $1.2 billion will be injected into schools, while university students may be set to pay a greater amount of potentially capped fees.
The Government will introduce a new $2.1 billion subsidised dental scheme as part of the budget while it may also include a $1.2 billion cut to public service departmental budgets.
