Federal cabinet is meeting in Sydney on Tuesday, just a month ahead of Malcolm Turnbull's first budget as prime minister.
The meeting is expected to confirm key directions for the May 3 budget as well as policies to be rolled out ahead of a possible July 2 double-dissolution election.
It comes as the latest Newspoll put Labor in the two-party preferred lead 51-49 for the first time since Mr Turnbull ousted Tony Abbott in September.
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