Budget to include “multi-billion dollar” investments for wage increases

Ahead of the Federal Budget tomorrow, Treasurer Jim Chalmers is setting aside billions of dollars for wage increases in the aged care sector.

Mr Chalmers revealed on Sunday there would be a "multibillion-dollar provision in the budget for better wages in the care economy" alongside $1.1bn over the next four years to put superannuation onto Paid Parental Leave.

"The primary focus of our economic plan is to help ease inflation and the cost of living, with a big focus on delivering more help for middle Australia and more help for mums," Mr Chalmers said.

"Whether it’s a bigger tax cut for more than 90 per cent of women, paying superannuation on paid parental leave, wiping HELP debt, or funding wage increases in aged care and childcare – the women of Australia will be big beneficiaries of the budget we hand down on Tuesday."

More aged care workers would be provided a pay rise after last year's 15 per cent wage increase and $11.3bn funding by the government.

Tuesday's budget is expected to provide wage increases to other workers in the sector after the Fair Work Commission (FWC) decided that chefs, cleaners, and laundry hands would get around a seven per cent increase.

The Federal Budget will be delivered tomorrow at 7:30PM (AEST).