The first big winners of Anthony Albanese's upcoming budget: What you need to ... trends now

Labor's upcoming Budget is set to focus on addressing the worst cost of living pressures in a generation with an election likely within a year.

Inflation remains stubbornly high, hurting not just borrowers battling surging mortgage repayments but also renters, parents and those on low-incomes having less left over before pay day.

Too much government spending risks worsening inflation, but too little help means more hip pocket pain and the danger of a recession.

Treasurer Jim Chalmers is tipped to provide more electricity bill relief on May 14, with his measures from previous Budgets due to expire in 2025 and Labor promising at the last election to slash power bills by $275.

He has hinted any spending measures in the Budget would be designed to address inflationary pressures.

But with an election looming, there are risks a government seeking re-election will give inflationary sweeteners to voters, with university students already promised some generous debt relief.

'This Budget will take a responsible, sensible and a balanced approach,' Dr Chalmers told reporters on Monday.

'The primary focus on the Budget is on inflation in the near-term and then growth in the median term.

'It will be an inflation-fighting and future-making Budget.

'There will be cost of living help for people doing it tough.' 

Here's what we know so far ahead of Dr Chalmers handing down his third Budget on Tuesday next week - amid fears high inflation could delay rate cuts in 2024 and 2025 as borrowers suffer from the most severe pace of monetary policy tightening in 35 years.

Student debt

With Labor in danger of losing young voters to the Greens, Education Minister Jason Clare on Sunday announced relief for 3million Australian university graduates paying off student debt.

In June every year, Higher Education Loan Program or Higher Education Contribution Scheme debt is indexed in line with consumer price index (CPI) - or annual headline inflation from the previous quarter.

This meant those paying off student debt faced a 7.1 per cent increase in their debt, effectively acting like interest on a loan.

But under Labor's plan, HELP or HECS debt could be indexed in line with the much lower wage price index, which means their debt would have increased by 3.2 per cent. 

The indexation would default to whatever was lower out of the wage price index or the consumer price index, with Labor citing higher inflation in early 2023.

The plan to eliminate $3billion worth of student debt would mark the biggest change to HECS indexation since it replaced free education, in 1989, when Bob Hawke was Labor prime minister.

Labor estimated an individual with an average HELP debt of $26,500 would see around $1,200 wiped from their outstanding HELP loans this year, subject to the bill getting through Parliament.

The relief would also apply to HELP, Vocational Education and Training Student Loans and Australian Apprenticeship Support Loans that existed in June last year.

Student debt has become more of an issue since 2005, when John Howard's Coalition government allowed universities to charge students up to 25 per cent more for degrees.

Cost of living

A year ago, Dr Chalmers announced a $500 Energy Bill Relief Fund, with rebates equally co-funded by the commonwealth and state governments with each tipping in $250.

The 2023 Budget announcement was made after Labor went to the 2022 election promising to reduce power bills by $275 on average, by 2025. 

The measure took time to be effective with electricity bills still soaring by 15.7 per cent in the year to July 2023 but as of March 2024, annual increases are at a more manageable 5.2 per cent.

But those electricity relief rebates expire in June 2025, putting pressure on Labor to announce something that

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