Handing down his first budget on Tuesday, the treasurer says the Turnbull government is sticking to its focus on jobs and growth, and fixing the problems in the tax system will cover its responsibilities for the next generation.
"This is the right plan for Australia to overcome the challenges of economic transition and to a clear path for long-term growth and new jobs in a stronger economy," Mr Morrison told parliament.
However, the budget position has deteriorated since December, while economic growth is set to subside to 2.5 per cent both this financial year and next after the brief spike to three per cent late last year.
Little wonder the Reserve Bank felt compelled to cut the cash rate to a record low 1.75 per cent at its board meeting just hours before Mr Morrison handed down the budget.
"The board judged that prospects for sustainable growth in the economy ... would be improved by easing monetary policy," central bank governor Glenn Stevens said in a statement.
The cash rate had been at the previous all-time low of two per cent for a year.
The budget deficit for 2015/16 is now expected to be a hefty $39.9 billion - the fifth largest on record - and more than the $37.5 billion predicted in the mid-year review.
It is also bigger than the $37.9 billion deficit result in 2014/15 and more than double former Labor treasurer Wayne Swan's last full-year budget in 2012/13.
For 2016/17 the deficit is $37.1 billion and subsequently declines to a surplus in 2020/21 as previously planned.
Budget repair would be achieved by policies that continue to control spending, Mr Morrison said.
"This is not a time to be splashing money around or increasing the tax burden."
Even so, the treasurer has found money to cut the company tax rate to 27.5 per cent from 28.5 per cent for small business, a key beneficiary of last year's budget.
This time around the government has also lifted the turnover threshold to $10 million from $2 million. It will be increased each year to an eventual $100 million in 2019/20.
Labelled a "ten-year enterprise tax plan", large business will benefit as well - but not until 2023/24 when their company tax rate drops to 27.5 per cent, and 25 per cent in 2026/27.
The government is also raising the upper limit of the middle-income personal income tax threshold from $80,000 to $87,000, preventing 500,000 taxpayers from tumbling into the second highest tax bracket every year through wage inflation, other wise known as bracket creep.
"Of course we would like to do more, but this is what we can afford today," Mr Morrison said.
The change is worth up to $24 a month, less than half the $45 a month saving on an average $300,000 mortgage from Mr Stevens' rate cut, provided of course the banks oblige.
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