Taxpayers may not get all the tax relief they were hoping for in tomorrow's federal budget after Australia's economy was hit by the global economic crisis.
Treasurer Wayne Swan has been forced to slash into spending, rather than raising taxes to make up for the losses from the global downturn.
But The Australian newspaper reports Mr Swan won't resort to higher taxes overall to make up for the losses.
Prime Minister Kevin Rudd pledged in January to achieve a budget surplus of at least 1.5 per cent of GDP, or about $17 billion and to bank any additional windfall revenue.
Mr Swan told the paper they have an upward revision for revenue from the terms of trade, with a very big leakage on the downside.
He says this means the savings task ahead of them is even bigger.