Federal treasurer Joe Hockey says the budget will help build a more prosperous nation.

But, he warned, prosperity has to be earned.

"Our future depends on what, as a nation, we do today," he said.

"Now is our turn to build. Doing nothing is not an option (and) it is time for all of us to contribute.

"We know that for some in our community this budget will not be easy. The age of entitlement is over. It has to be replaced, not with an age of austerity, but with an age of opportunity."

Mr Hockey said the time to fix the budget is now and the time to fix the economy is now.

Here is a quick overview of the budget's main points:

The deficit

According to the budget, the federal deficit will fall from $49.9 billion to $29.8 billion next year. By 2017-18, it will be $2.8 billion.

Politicians' wages

There will be a one year freeze on politicians' wages.

Budget repair levy

The "temporary budget repair levy" will be a hit on people who earn more than $180,000 a year. It will raise $3.1 billion over the next four years. And "in effect" it will increase the marginal tax rate by 2 per cent.

Family tax benefit B

The income threshold for Family Tax Benefit B (which provides assistance to sole parents and families where a parent stays at home) will drop from $150,000 to $100,000 from July 2015 - in a change similar to the Audit Commission's recommendation.

Payments will only be made until the youngest child turns 6. At the moment, parents can access the payment until the youngest child turns 16, or 18 if they are still in full-time high school.

Low income single parents will receive a "new assistance" of $750 a year for every child they have between 6 and 12.

The large family supplement currently pays out $12.04 a fortnight for the third and each subsequent child in a family. From July 1 2015, it will only be paid for the fourth and each subsequent child.

Health care

Untaxed superannuation will now be included in the income test for new recipients of the card, which provides cheaper access to health care for older Australians who are not already on the pension.

(This measure had been floated for a few months as part of the Audit Commission, so it will not come as a surprise. Even if it is not a welcome one.)

From July 2015, previously bulk-billed patients can expect to contribute $7 toward the cost of their GP visits and out-of-hospital pathology and imaging services.

Employment for the young

Young people under 25 will not be able to get Newstart if they are unemployed.

The government had already suggested this before the budget, and as predicted, from January 2015, those under 25 will be eligible for the (lower) Youth Allowance payment instead.

* Young people under 30 will have to wait six months to get the dole and then have to work for the payment.

From January 2015, those under 30 will have to participate in "job search and employment services activities" (which are funded by the government) before receiving Youth Allowance or Newstart.

After six months, jobseekers will also have to do at least 25 hours a week of work for the dole "activities" to get their payment.

Employment for older workers

Older workers will be given a boost to work

Businesses that employ an Australian over the age of 50, who has been on unemployment benefits or the DSP for six months, will be given $10,000 to help employees "reskill".

Fuel excise increase

And reintroduction of fuel indexation will help pay for the government's infrastructure plans - it wants to build more roads, rails, ports and airports over the next six years - the government will reintroduce the indexation of fuel from August 2014.

This will generate $2.2 billion over the next four years.

Health and schools

Responsibility for public hospitals and schools will be pushed back to the states.

- For more local comment on the budget check out the Port News on Wednesday and Friday.

8.40pm:  Retirees' and pensioners

PORT Macquarie branch of the Combined Pensioners and Superannuats says Tuesday night's budget will affect virtually every pensioner and retiree to a greater or lesser extent.

Spokesperson Brian Buckett said the level of effect will depend on what the asset base is when the person retires and on their income during their retirement years.

"But I guess it is the budget we had to have," he added.

"It certainly is not going to be easy, particularly for retirees and pensioners.

"They are going to feel it quite considerably, particularly if they don't have any savings or additional income, a part from their pension.

"I think we've been the lucky country too long in that we have enjoyed the best of everything."

Mr Buckett said pensions will be changing but not until 2017.

"Pensions have been frozen for the next three years (and) that is going to create the most strain because some of the costs of living that are now indexed will rise during this period," he said.

"So people on a straight pension will be the ones hardest hit. This will not be immediate but will come into effect over the three years … pensioners will see that they have less.

"These rising costs will have quite a dramatic effect on a large percentage of our retirees."

Mr Bucket predicted this would probably manifest itself back into a rising in medical issues for some retirees.

"Do you forego medications, travelling to the doctors … just to pay the bills," he said.

8.15pm:  climate change and the environment

THE government's budget announcement to cut the Department of Environment puts 'at risk' Australia's natural environment.

That's the opinion of president of Climate Change Australia, Hastings branch, Harry Creamer.

"The final area of concern is cutting the Department of Environment. This places Australia's natural environment at risk from the great barrier reef to the forests and rivers," he said.

"I heard the treasurer say the first duty of the government is to protect our people yet this is a government that is walking away from its responsibility to a secure climate and energy future for Australia.

"The one positive I got was the decision to increase the fuel excise.

"We support this because it sends a price signal that fuel is a finite resource and should be used wisely while also cutting carbon emissions.

"However, the negatives of the budget far outweigh the positives when talking about climate and energy policy."

Mr Creamer said he was also concerned about reports that the government was scrapping ARENA.

He said, if this was true, it 'will show this government's contempt for clean energy'.

"ARENA is an independent agency that funds renewable energy … arguments about saving money and programs continuing are just sophistry," he said.

"Axing the carbon tax and replacing it with direct action with cost the government $24 billion from now until 2020, (but) if they left things the way they are could have saved $24 billion."

Mr Creamer was also concerned about the introduction of a future health fun. He said if the government really wanted to do something about the nation's health it should take the impacts of climate change seriously.

"They are planning to spend 10 times as much on medical research than on the clear and present danger of climate change.

"There is a missed opportunity in not cutting subsidies to the mining industry amounting to $13 billion in the coming year alone."

7.30pm: THERE is sure to be plenty of local reaction to Joe Hockey's first federal budget as treasurer.

And while all eyes will be on the performance of the treasurer, Tuesday night's budget is also be the first for local member Dr David Gillespie.

Dr Gillespie has suggested that the Mid-North Coast will be a major winner with the budget set to deliver a major boost to infrastructure spending.

Some of these projects could include the upgrade of the Pacific Highway between the Oxley Highway and Kempsey.

The local federal MP was also confident that the Abbott government would make available significant funding across Australia to the Federal Blackspots program, on top of the $60 million a year it had already committed.

The budget could also see an extra $350 million in 2015-16 to Roads to Recovery, bringing the total investment in the five years to 2018-19 to $2.1 billion.

More than $17 million in federal funding has also been allocated to projects scheduled for completion in 2014/15 as part of the Coalition Community Development Grants program including the Port Macquarie Indoor Stadium upgrade.

The Port News spoke with several local residents leading into Tuesday night's budget which shows concerns across a broad range of issues.

This included, job security and job creation, health, pensioner welfare, the impact any cuts to social services may have across the board and the possible implementation of a levy - 'isn't that a tax really?' - on higher income earners.