Treasurer Scott Morrison has won over the business sector but faces a tougher task wooing lower-income Australians after delivering "an election manifesto dressed up as a budget".
Small business in particular believes it is the beneficiary of the best budget ever, as it wins another tax cut and other initiatives.
"Last year I thought it was the best budget small business has ever seen and we would not get better. I was wrong. This year they've improved upon it," Council of Small Business chief executive Peter Strong said.
The Business Council of Australia says the budget is a step in the right direction for the economy.
"The budget had two big tasks this year - stay on course to a credible structural surplus, while equipping the economy with the means for faster growth to support long-term jobs and prosperity," chief executive Jennifer Westacott said.
"On these two measures, tonight's budget is heading in the right direction."
The plan to cut the company tax rate over the next decade will make Australia more appealing to international investors and encourage Australians to develop businesses at home, Australian Chamber of Commerce CEO James Pearson said.
"With an election looming, this budget demonstrates that good policy can also be good politics," he said.
But the budget has been dismissed as a missed opportunity to address broader structural issues affecting Australia's tax system.
"The government has written an election manifesto dressed up as a budget as it looks ahead to the double dissolution on July 2," BDO tax partner Mark Molesworth said.
"This is very much a budget from a government whose first, second and third priorities are getting re-elected."
Australian Taxpayers Alliance executive director Tim Andrews said despite the grand rhetoric, it was a timid, low-risk budget that failed to address the fundamental challenges facing the economy.
Chartered Accountants Australia and New Zealand head of tax Michael Croker says Australia urgently needs to develop a more sustainable tax base to help fund services the community has come to expect, and worthy initiatives such as the national disability insurance scheme.
"Sooner or later, we need to confront the need to increase the GST base or rate, or both."
ACTU president Ged Kearney said working Australians have been left worse off.
Retailers believe the budget and Tuesday's Reserve Bank rate cut will boost confidence among consumers.
"Introducing new measures to support business and delivering stimulus to the hip pocket on top of the RBA interest rate cut will be just what the doctor ordered for retail," Australian Retailers Association executive director Russell Zimmerman said.
