Labor leader Bill Shorten is promising bigger tax cuts for those earning less than $40,000 a year, adding that his party will add billions in health spending if they win the May election.
Mr Shorten will use his budget reply speech on Thursday night to lay the foundation for an election campaign fought on fairness and Medicare.
Labor has already promised to match the government's plan to provide taxpayers earning up to $125,000 with an offset worth up to $1080 per week.