A dramatic overhaul of Australia’s tax system is at the heart of this year’s federal budget.

The first stage of the government’s three-pronged plan is a lump-sum payment for low and middle-income earners at tax time.

Over 10 years the government wants to ease the tax burden by a staggering $140 billion.

Treasurer Scott Morrison tells Ross Greenwood tax relief doesn’t constitute a giveaway.

“I’m not handing anything out. It’s their money, they earned it. I’m saying ‘I think you should keep it’.

“I think when taxes rise too high in the economy it costs jobs, it costs the economy and that only drags further on what the country can earn.”

The opposition claims the government has given up on budget repair, but the Treasurer says Labor just sees the public as a cash cow.

“The Labor Party just see themselves as collecting rent from the economy, we see ourselves as partners to see the economy grow.

“They just don’t get it. Higher taxes is economy and job sapping.

“I mean whose money do they think it is. It’s theirs, they earned it. Why are you trying to knick it off them all the time Bill and Chris?”

Click PLAY below for the full interview