Labor promised $31 billion of cuts over three years during the election campaign.
Treasurer Wayne Swan says low-income earners were neglected by the Howard Government and they will be the winners in this year's Budget, after the first round of cuts kick in on July 1.
They are expected the receive around $20 a week more in their pay packets.
He says the money will have the biggest impact on the people who need it most.
"In the past they've been left out and the tax cuts have gone to those at the top end,'' he said.
"But the focus of the tax cuts that begin from the Rudd Government on July 1 are people like hairdressers, mechanics, child care workers, teachers aides, tradies [sic] and labourers."
But Opposition Leader Brendan Nelson says the Government is only copying the Coalition's tax policy.
"Mr Rudd and Mr Swan have done a copycat job and they're now bringing in tax cuts announced by Mr Howard and Peter Costello just before the election last year," he said.
"We expect those to be delivered in full during the Budget."
Source: By Australian Broadcasting Corporation
