The treasurer has played down reports all taxpayers could receive a one-off investment in the upcoming budget, as the Reserve Bank warns against a cash splash for households.
With one week until Jim Chalmers hands down his fifth budget, speculation has emerged every person who earns a salary and pays tax will receive an earned income offset of between $200 and $300.
Dr Chalmers said the fiscal blueprint would focus on fighting inflation following the Middle East war and a third consecutive interest rate rise.
He did not say whether the offset, reported by The Australian, would be a feature of the budget.
"There's always a lot of speculation about budget measures in the weeks leading up to budgets," he told reporters in Canberra on Tuesday.
"That speculation is not always right, and I don't intend to add to that specific speculation today, except to say that we are already cutting taxes."
But Reserve Bank governor Michele Bullock said handouts from the government could make fighting inflation more challenging in the long run.
"When inflation is already too high and the economy facing capacity pressures, it doesn't take much additional spending to make the job of returning inflation to target more challenging," she told reporters in Sydney.
"The extent to which government make up the shortfalls for households by giving them more money, it makes it harder to dampen demand.
"When governments are spending a lot of money and we're running up against capacity constraints, then they do need to think about whether or not there's ways they can help the inflation problem by looking for ways to constrain demand."
Earlier, Prime Minister Anthony Albanese didn't confirm Treasury advice relating to any impact on inflation by possible moves to implement tax relief.
"What I can guarantee is that certainly, we're very conscious about putting that downward pressure," he told reporters in Brisbane.
"We've already had $114 billion of savings in our budgets. There'll be more savings in the budget that is announced next week - this will be a responsible budget."
The treasurer also did not confirm whether changes to negative gearing, capital gains tax and taxes on trust funds would be a feature of the budget.
Such measures were part of Labor's platform it took to the 2019 election under then-leader Bill Shorten before losing to the coalition.
But Dr Chalmers said the budget would not be a rehash of its former economic plan.
"My job is to make the right decisions for the right reasons in 2026, not to rerun the election of 2019," he said.
"My job is to look forward, not back."
Opposition Leader Angus Taylor labelled the government incompetent and said Labor had lied to Australians about promising not to make particular tax changes.
"What Australians want to see is lower inflation and lower interest rates," he told reporters in Canberra.
"I've been saying for years that this government just keeps putting a band-aid on the bullet wound."
The treasurer and Energy Minister Chris Bowen announced measures allowing employers to avoid paying fringe benefits tax on EVs under $91,387 purchased through a novated lease, which will transition to a permanent 25 per cent discount on that tax.
From April 2027, the full tax discount will only apply to EVs costing $75,000 or less, while vehicles above $75,000 but below the luxury tax threshold will only receive a 25 per cent discount.
During that same period, all EVs below the luxury tax threshold will only receive the 25 per cent discount.
The luxury tax threshold is $91,387 but rises each year with inflation.
