Finance Minister Mathias Cormann has confirmed the budget will provide tax cuts for mainstream households whom he acknowledged had not yet received the "dividends" of a growing economy, but he also foreshadowed it will lock in cuts to the wealthy in subsequent years.

As the government continues to signal that its budget will chart a quicker path back to surplus while also handing money back to taxpayers, the politics remain tricky, with Labor set to match income tax relief – at least for the bottom end – and expected to use its bigger warchest from not proceeding with company tax cuts, to achieve a stronger surplus.

Speaking just days before the budget is handed down – expected to be the last before any election is fought – Senator Cormann said it was "very important" that Australia's tax policy settings remained "competitive".

Treasurer Scott Morrison flanked by Finance Minister Mathias Cormann announces changes to beer taxes on Friday. Credit:Alex Ellinghausen

"We will be prioritising low and middle income earners when it comes to tax relief but of course it's important that the tax policy settings are appropriate over all," he said.