Australia’s government aims to nearly halve its budget deficit over the next year through a combination of tough spending cuts and tax increases.
In his speech to parliament, Treasurer Joe Hockey said “the age of entitlement is over” and that “the days of borrow and spend must come to an end”.
Under their plans, the deficit is forecast to fall from $50bn Australian dollars ($47bn; £28bn) to $30bn.
However, the spending cuts are expected to result in thousands of job losses.
The economic blueprint also includes plans for the possible sale of assets such as the Royal Australian Mint and aural aid-maker Australian hearing.
For the financial year starting 1 July, the government is looking to spend A$11bn on key infrastructure projects such as roads, railways and a new airport in Sydney.
They also announced plans to create a A$20m medical research fund in a bid to help diversify its economy away from its reliance on mining.
The government also fielded a proposal to raise Australia’s retirement age to 70 by 2035, to combat the problems associated with an ageing population.
Australian Chamber of Commerce and Industry chief executive Kate Carnell welcomed the move, saying: “This is the budget we had to have.