The Morrison government has an $11 billion budget war chest ahead of the federal election expected in May, which could mean extra money in voters' pockets.
The mid-year economic and fiscal outlook released in Canberra on Monday noted a "contingency reserve" of $11.2 billion.
The reserve gives a buffer for the government if economic parameters change or deals with the states and territories are renegotiated.
But it also covers "decisions taken but not yet announced by the government ... and provisions for other specific events and pressures that are reasonably expected to affect the budget estimates".
Asked whether some of the money could go to further personal income tax cuts, Treasurer Josh Frydenberg said the government had a track record to uphold.
"We are committed to targeted spending and lower taxes," Mr Frydenberg told reporters in Canberra.
"But we're not going to make any announcements today. What we are saying is that we will approach all these issues in a carefully considered, methodical way, just as we have done to date."
Finance Minister Mathias Cormann said the government still had a budget to come in April and a pre-election budget update.
"It is no secret we are committed to lower taxes as part of our plan to strengthen the economy, create more jobs and ensure that Australians have the best possible opportunity to get ahead," Senator Cormann said.
The government already has plans in place to cut income tax, starting with relief of up to $530 for low and middle income earners in 2018/19, and aiming for a marginal tax rate of 32.5 per cent for around 94 per cent of all taxpayers in 2024/25.
