"McMillan is really a family district in Victoria, we have a lot of young families and we're still keeping the $600 carer's allowance as well as the extra Family Tax Benefit Part A payments," Mr Broadbent said.

He said the Family Tax Benefit Part A payments would result in an average of $12 a week for families and would take effect from July 2006.

The amount a family can earn before their benefit starts to reduce will be increased by $4100 to $37,500.

Mr Broadbent also highlighted the government's tax cuts worth $21.7 billion.

The biggest winners are the high income earners. A person earning $100,000 a year will now be $62 better off each week compared to middle earners on around $50,000 who will only receive $6 extra a week.

But Mr Broadbent said there were many power and paper industry workers in the Latrobe Valley who would be in the higher earner's bracket and therefore benefit greatly from the tax cuts.

Other budget highlights include $3.6 billion to encourage single mothers, disability pensioners and long-term unemployed into finding jobs.

There will be a push to get single parents into part-time work of at least 15 hours a week once their youngest child turns six.

People seeking disability pensions will have to look for employment of 15 hours a week, if they are capable.

But Mr Broadbent said those already on disability pensions would be protected from the tougher regulations.

"If anyone's on any benefit today, they won't lose that," he said.

He said most of the new rules would not apply until 1 July next year.

Mr Broadbent said the government was aware jobs were hard to find but said it would spend $2 billion on "helping the employment process". The money will be spent on programs, for people on various forms of welfare, for job preparation, training and subsidies to encourage employers to hire.

Mr Broadbent said a strong economy meant better employment prospects.