Treasurer Jim Chalmers will announce tonight where billions in federal spending will be allocated.
Labor has already committed, for Australian households and small businesses, and .
Professor Robert Brooks from Monash University's Department of Econometrics and Business Statistics said while many Australians may benefit from the federal budget announcements, they shouldn't expect any radical changes to their finances.
"It is important to pay attention to announcements, people are particularly interested in the economy and health, but the government is being fairly conservative," he told SBS News.
"There is a strong narrative for want of a better term, of responsible economic management."
How will the federal budget impact you?
Labor is projected to allocate about $730 billion in the budget which comes from taxation and government revenue.
Brooks explained the budget reflects the economy's performance, with combating inflation being a key priority for government spending.
"The government is looking to keep inflation down to a desirable level, so its economic policy will be consistent with measures that reduce inflation and less government spending," he said.
He said rebates, tax announcements, and health policies are the key areas to watch, as they will directly affect the everyday cost of living.
"The energy bill relief of $150 for households and businesses is not a lot of money, but it is helpful in a sense," Brooks said.
"We won't see any drastic changes to tax settings, that would be a major, major surprise.
"Given some budget measures have already been announced, there shouldn't be any surprises for the stock market either."
What does the budget say about the economy?
Brooks said the government has previously benefitted from higher-than-expected revenue from Australian exports and commodities, leading to a brief period of budget surpluses.
This time, however, Labor will announce a budget in deficit, meaning the government is spending more than it earns.
But that isn't necessarily a bad thing for Australian households, Brooks said.
"It's fine for budgets to cycle between surplus and deficit so long as there is strong economic policy in place, so people don't need to worry," he said.
"Some years spending will be higher or lower, it's a normal process the government will go through."
What are Labor's priorities?
Brooks said Labor wants to appear economically responsible in its handling of the budget, and is focusing on housing, cost of living and health.
"It gives an indication of what Labor is focusing on this election and how much they are willing to spend," he said.
One key aspect to look out for is the forward estimates, which show how much the government plans to allocate to various areas in the coming years.
Which groups could Labor target in tonight's budget?
This year's budget is different, as the country heads to the polls by 17 May, keeping the election "front of mind" for Labor, Brooks said.
Gen Z and millennial voters now outnumber baby boomers in every state and territory for the first time, which he said is "really important" for tonight's budget.
"Younger voters are really asking questions about housing affordability, energy policy, and sustainability, so I'd expect the budget to emphasise those areas.
"Everyone should pay attention to the budget, as the policies could affect someone greatly, and it's a good way to determine if the government has your best interests in mind."
