The federal treasurer has not ruled out more cost-of-living relief in the budget if the government can afford it.
Setting the scene for his second budget to be delivered on May 9, Treasurer Jim Chalmers said the slowing global economy and higher interest rates would weigh on Australia's growth prospects.
While a recession is not expected in Australia, a third of the world's economies are anticipated to endure extended periods of contraction.
"Inflation remains our dominant concern even on the other side of its peak, as global price pressures coming at us from around the world continue to be felt around the kitchen table," Dr Chalmers said.
"We are in a stronger position than most countries but still more vulnerable than we'd like to be to international shocks."
The government is already taking steps to ease financial pressure on households, including electricity bill relief, cheaper childcare - due to come into force in July - and higher wages for aged-care workers.
"If there are additional measures we can afford to put in place of course we'll consider them," Dr Chalmers added.
But budget repair remains a key challenge for the Albanese government as demand for government services grows and the interest bill on government debt continues to balloon.
"We will maintain an emphasis on health and Medicare, and ageing and aged care, on women and wellbeing, and with a particular focus on tackling disadvantage," he said.
The long-term pressures on the budget are only expected to grow as population forecasts released last week show Australia ageing faster than expected due to the pandemic-induced halt in migration.
An ageing population will weigh on government finances as there will be higher demand for health care and other government services, and fewer people of working age to support the elderly.
