Malcolm Turnbull believes the parliament has taken a "very good step" in the task of repairing the budget after his government successfully negotiated a $6.3 billion savings bill with Labor.
But the prime minister again warned if parliament fails in its responsibility to balance the budget, it will put pressure on the nation's triple-A credit rating and have enormous consequences for today's children and grandchildren, who will end up paying much higher taxes or face lesser-quality government services.
Treasurer Scott Morrison was quick to put some perspective on the deal struck with Labor.
"It helps but it doesn't resolve the issue," the treasurer told reporters, referring to public debt running into the hundreds of billions of dollars.
Labor was just as quick to claim credit for the final make-up of the government's so-called omnibus bill which includes a range of measures it previously opposed but largely included in its election costings.
"Labor promised the Australian people we would undertake budget repair that is fair, and we are delivering on that promise today," Opposition Leader Bill Shorten told reporters.
Business groups said it marked a positive start to the new parliament.
"This deal demonstrates that the two major parties can work together constructively to repair Australia's budget position," Business Council of Australia chief Jennifer Westacott said.
Australian Chamber and Commerce and Industry head James Pearson said the government and opposition could build on the consensus by taking real action on workplace relations reform, cuts to company tax and improved competition policy.
In total, Labor agreed to 20 of the 24 omnibus measures.
But by convincing the government to drop its baby bonus and abolish a Family Tax Benefit supplement for families with incomes above $80,000, the total savings were $6.3 billion over the four-year forward estimates rather than just under $6 billion.
Labor also managed to retain $800 million in funding for the Australian Renewable Energy Agency.
"This is a better, stronger and fairer set of measures, because of Labor's constructive approach," Mr Shorten said.
Mr Morrison said there had been some "give-and-take" but the government would be pursuing further savings.
The deal also protects the child dental benefits scheme by removing it from the legislation and takes out the cuts that would have seen imprisoned people with severe psychiatric conditions lose support.
Changes to the energy supplement measure will ensure all existing categories of recipients including those on Newstart and pensioners will continue to receive the supplement, except for people receiving the Family Tax Benefit and commonwealth seniors health card holders..
