The Turnbull government is set to hand down a budget nudging $500 billion in revenues which the prime minister says will help Australians "realise their dreams".

Fairness, opportunity and security will be the key themes of Treasurer Scott Morrison's second budget.

Extra spending on health and education, tax breaks for first home buyers, record investment in infrastructure and more money for defence and national security will be included.

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To pay for it, the government will crack down on multinational tax avoidance, bring in extra revenue from tobacco, cut funding to universities and continue the public service efficiency dividend among other measures.

It's also expected changes will be made to the Medicare levy or Medicare levy surcharge on high-income earners to pay for a lift in the freeze on GP Medicare rebate.

"This budget will be committed to fairness, opportunity and security, ensuring that Australians are given the opportunity to get ahead, the economic growth that enables them to get ahead, to get a better job, a better-paying job, to start a business, grow a business, to realise their dreams," Mr Turnbull says.

New economic figures suggest people may already be on the brink of achieving those goals with business confidence striking its highest point since 2010 and job ads pointing to a sustained period of employment growth.

The budget papers are tipped to show an improvement on the bottom line forecast the mid-year review in December and a path to balance in 2021.

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However debt will continue to head north of $500 billion, as Mr Morrison reclassifies spending on infrastructure as good debt and recurrent spending such as welfare as bad debt.

The budget will sound the death knell for about $12 billion in so-called "zombie" savings measures left over from 2014.

Labor says the budget will cut school funding by $22 billion over the decade and do little for skills and training at a time when a better-educated workforce is needed.

The opposition also argues housing affordability can't be addressed without major changes to negative gearing and capital gains tax.

Before Mr Morrison gets to his feet for the budget speech, the parliament will put the finishing touches to the first tranche of his business tax cuts.

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