Labor gets 'back to basics' but does the federal budget go far enough?

Treasurer Jim Chalmers handed down the Albanese government's third budget on Tuesday, May 14, which included a $9.3 billion surplus, a $300 energy rebate for households and a tax cut for all taxpayers.

Ms Chesters said a Commercial Rent Assistance rates increase and $1 billion housing package would help the housing crisis, particularly in Bendigo.

"What we do at the federal level is we put the funding on the table and then local not-for-profits put forward their projects through their national housing fund and through local government," she said.

"We've also put a significant money on the table to state governments to help accelerate their building programs.

"The way in which we've allocated the funding is to areas of most need, and we know that Bendigo is at the top of the list when it comes to most need."

Federal Liberal candidate for Bendigo and Greater Bendigo councillor Matt Evans, who recently announced he would not contest the next council election and would focus on his federal campaign, said the budget failed to address a "home-grown" inflation.

"Instead, Labor have added $315 billion in spending," Mr Evans said. "That's $30,000 of additional spending per household.

"And after three Labor budgets, the average Australian household with a mortgage is $35,000 worse off."

Mr Evans said families and local businesses and families would "continue to feel the impact of Labor's inflation and will be paying more".

But Ms Chesters said inflation has decreased since Labor has been in government, down to 3.6 per cent in the year to March quarter and down from the "around 6 per cent" in the Liberal's last budget before the 2022 election.

"We've already got inflation down to a three, which is in the Reserve Bank's preferred bracket of three to two per cent," Ms Chesters said.

"We are working hard to lower inflation and therefore take the pressure off the Reserve Bank when it's looking at interest rate in the next month and two months time."

Ms Chesters said the budget focused on "relief", which also included freezing PBS-listed medications for everyone with a Medicare for one year and five years for concession card holders and pensioners.

"We did have that spike in inflation and inflation is starting to come down," she said.

"This recognises whilst we're moderating our inflation and getting it down to a more manageable level, we are freezing indexation in areas where it could impact the most."

Mr Evans said there was "virtually no new investment" or "local project" in the region, a statement echoed by Regional Cities Victoria chair and Mayor of Shepparton Cr Shane Sali.

"We've lost some big projects," he said.

"These announcements of buckets of money were welcome, but it's time to tip that money into regional Victoria.

"Local infrastructure projects are a vital part of any regional community. They not only improve the liveability of regional cities and towns but also contribute to the local economy and create local jobs."

Ms Chesters said she would point councils towards the growing regions fund.

"Local governments can put forward their projects in an competitive tender process where independent at-arms-length departments make a recommendation to government and to ministers about what projects should be funding," she said.

Round one had closed and announcements on successful projects were expected "any day".

"The government's not going out there and cherry picking their favorites and winners," Ms Chesters said.

"We're saying to all local governments and not-for-profits, 'put forward your projects, do the work, put in an application, and we'll fund the projects that put forward the best case'.

"It's done in a methodical, transparent way, it's not done the way the previous government did it, where they threw lots of money into liberal seats and national seats."

Ms Chesters said her focus had not yet turned to the next federal election, as there was "still a lot of work to do" on cost-of-living in the community.