Federal Treasurer Jim Chalmers will hand down his first budget tonight.

Labor is expected to announce a $40 billion improvement to the bottom line.

4BC’s federal political editor Michael Pachi says Australians have already been told there will be more funding for childcare, health and cheaper medicines.

He’s also predicting more spending measures.

“One of the new things that I think is going to be announced tonight, this comes courtesy of our friends at the Brisbane Times, it looks as though they are going to be making a housing announcement tonight,” he told Laurel, Gary and Mark.

He is also predicting an announcement on company tax.

Press PLAY below to hear his insights in full

4BC will be hosting a Budget special from 6pm-8pm tonight.

Federal budget: The big ticket items, and what we know so far