Cost of living package: fuel excise cut, one-off payments and tax relief

Mr Frydenberg blamed much the rising cost of living on "international factors" , such as the pandemic and Russia's invasion of Ukraine, disrupting supply chains and increasing the cost of everything from oil to grain.

The 44-cent fuel excise will be halved for six months, which should see prices drop at the bowser by 22c.

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"A family with 2 cars who fill up once a week could save around $30 a week or around $700 over the next 6 months," Mr Frydenberg said.

Low-to-middle income earners will get a one-off $420 cost of living tax offset.

"Individuals already receiving the low and middle income tax offset will now receive up to $1500 and couples up to $3000 from July 1 this year," Mr Frydenberg said.

About 6 million people will receive a one-off $250 cost of living payment in April, including job seekers, carers, pensioners, self-funded retirees and concession cardholders.

The government will help 10,000 regional first-home buyers crack into the market each year, allowing them to purchase a house with a 2 or 5 per cent deposit.

Applicants must either build or purchase a newly built home, and earn no more than $125,000 a year and $200,000 for couples. House prices are capped at between $800,000 and $350,000 depending on the state.

Greater access to cheaper medicines will be provided to 2.4 million people, who will need fewer scripts before they are eligible for free or discounted medicines.