Here are the main takeaways:

Labor has delivered a $4.2 billion surplus, marking the government's first surplus in 15 years.

The government books are in a healthier place than expected last year, thanks to higher tax revenue from surging commodity prices and more people being in work.

But the government isn't back in black for good. The budget forecasts a deficit of $13.9 billion in 2024-25, though this is an improvement on the $30.1 billion deficit Labor predicted in last October's budget.

Lower deficits are forecast over the next five years, with the government forecasting a $125.9 billion improvement in its underlying cash balance by 2026-27.

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Nonetheless, government debt is still on track to hit over $1 trillion by mid-2026.

According to the budget papers, inflation has finally peaked around 6 per cent, and is expected to fall to 3.25 per cent in 2023-24. The government is forecasting that we will see inflation hit 2.75 per cent by mid-2025, bringing it within the target band of 2-3 per cent set by the Reserve Bank.

The government was keen to make clear that its bold $14.6 billion cost-of-living package not only wouldn't add to broader inflationary pressures, but is expected to be responsible for a 0.75 per cent reduction in inflation next financial year.

In other news, economic growth is expected to slow from 3.25 per cent this financial year to 1.5 per cent the year after, before recovering to 2.25 per cent in 2024-25.

Nonetheless, the unemployment rate is expected to remain historically low at 4.5 per cent in the next financial year, and 4.5 per cent in 2024-25.

The centrepiece of this year's budget is the government's $14.6 billion cost-of-living package, comprising of increased welfare payments, subsidised healthcare, and energy bill relief.

The government announced a historic $40 per fortnight increase to income support payments, including JobSeeker and Youth Allowance.

The change, set to help 1.1 million Australians, is set to come into effect in September and will cost $4.9 billion over five years from 2023-24.

The rate of JobSeeker will increase further for those aged 55 and over, with Treasurer Chalmers noting in his speech that the majority of people in this group are women, "many with little to no savings or superannuation, and who are at risk of homelessness".

The higher JobSeeker rate currently offered to those aged 60 and over will now extend to those aged 55 and over, delivering higher rates to 52,000 people.

The maximum rate of Commonwealth rent assistance will also lift by 15 per cent, with 1.1 million households expected to benefit.

A historic $5.7 billion is being invested into Medicare, along with largest increase to the bulk billing incentive ever.

The government is investing $3.5 billion to triple the bulk billing incentive which will help GPs provide free consultations to around 11.6 million children, pensioners and other Commonwealth concession card holders. A further $358.5 million is also being invested in Medicare Urgent Care Clinics, in part helping deliver eight more clinics by the end of the year.

There are also changes to the Pharmaceutical Benefits Scheme. Notably, from September, patients will be able to dispense two months' worth of treatments for over 300 different medicines. This will reduce the amount of times that a patient needs to fill their prescription, and could save them up to $180 a year.

The Medicare levy threshold for low-income earners will also increase, from $23,265 to $24,276 for singles, and $39,402 to $40,939 for families.

The government is cracking down on tobacco and non-prescription vapes.

The tax on tobacco products will increase by 5 per cent each year for the next three years, raising $3.3 billion in revenue.

The budget will also include $737 million to tackle harm caused by tobacco and vaping products, with $63 million put towards a public health information campaign to discourage people from taking up smoking and vaping and $30 million for support programs to help users quit.

A sum of $264 million will be spent on a new national lung cancer screening program, and $239 million will go towards delivering more accessible services for First Nations people affected by lung cancer.

In the lead up to the budget, the government revealed $3 billion would go to direct energy bill relief for eligible households and small businesses, to be co-funded with the states.

As part of this, more than 5 million households will receive up to $500 in power bill relief.

The relief will mostly be directed at aged pensioners and people on fixed incomes, including welfare recipients. The amount offered will also differ state-to-state, depending on how much electricity prices are and hat amount state governments are prepared to contribute.

Another $1 billion is also being invested to help provide low-cost loans for double glazing, solar panels and other improvements that will make homes more energy efficient.

The budget commits an additional $4.6 billion in climate-related expenditure. Within this is $2 billion for a new Hydrogen Headstart program, which The Treasurer said would help establish Australia as a "world leader in producing and exporting hydrogen power".

The budget also funds the establishment of the already-announced national Net Zero Authority, with $23 million set aside to set up the body in its first year. The authority will be tasked with ensuring workers, industries and communities have an economic future as we transition to net-zero.

As promised ahead of budget night, the government is axing the controversial $484 million ParentsNext scheme. Under the scheme - introduced by the Coalition in 2018 - parents of children aged between nine months and six years could have welfare payments suspended for non requirements for meetings, study or parenting-related activities.

Nearly 100,000 people are on ParentsNext, the majority of whom are single mothers.

Mutual obligations requirements will be immediately dropped for current payment recipients until they are transitioned to a new support service.

The single parent payment will also be extended to single parents until their youngest child turns 14, rather than eight. The move will provide 57,000 recipients - 90 per cent of whom are women - with an extra $176.90 fortnight.

The government has also announced almost $590 million to the National Plan to End Violence against Women and Children, on top of the $1.7 billion initial investment in Labor's October budget.

A sum of $4.5 billion over 10 years to support the delivery of the nuclear-powered submarine program, with the majority of the funding going towards the establishment of a new Australian submarine agency, which will set within defence.

Ukraine will be provided with $189.6 million over two years in additional assistance. This includes more bushmasters.

They will also be given unmanned aerial vehicles, additional training to Ukraine armed forces, and military aid.

The number of public servants that the government is expected to hire will be lifted to almost 192,000. A third of the additional staff will come from short-term contractors being transitioned into permanent positions.

The government will also allocate nearly $20 million over the next two years towards the public service to improve its cultural competency and First Nations representation. This funding will also be used to establish an in-house consulting service within the public service.