Aussie shares wobble ahead of budget, oil surges again

Australian shares slumped on deteriorating US-Iran relations and fears over flagged tax reforms. (Bianca De Marchi/AAP PHOTOS)

Australia's share market has wobbled ahead of the federal budget, as investors brace for tax reforms expected to impact returns on housing and stocks.

The S&P/ASX200 fell 31.1 points on Tuesday, down 0.36 per cent, to 8,670.7, as the broader All Ordinaries dipped by 32.8 points, or 0.37 per cent, to 8,909.6.