Breaking from convention, the budget was submitted a week earlier than the traditional annual date of the second Tuesday in May, amidst a run-up to the 2016 federal election.

Prime Minister Malcolm Turnbull had recalled parliament early, in anticipation of a double dissolution triggering an election for 2 July 2016.

"[2][3][4] After ascending to the Prime Ministership, Turnbull appointed the former Minister for Social Services Scott Morrison as Treasurer, replacing Joe Hockey who resigned from politics shortly afterwards.

The 2% deficit repair levy on individual incomes above $180,000 instituted by former Prime Minister Tony Abbott is set to be abolished from 1 July 2017.

There was some additional funding for regional aged care facilities, but the net effect of the budget is "a reduction of $902.7 million over five years".

[16] In the 2016 budget, the Turnbull government planned to cease the clean energy supplement of $4.40 for people beginning Newstart after 20 September.

[18] In Melbourne, $3 billion is still available for the Government of Victoria to spend on the proposed East West Link, which had been previously accepted by former Liberal Premier Denis Napthine, but rejected by Labor Premier Daniel Andrews after his election in 2014, who vowed instead to fund and construct the Melbourne Metro Rail Project, without federal support.

[25][26] $594 million will be spent towards research and land acquisition, though there is no funding as of yet for construction of the line, which is projected to cost around $10.7 billion.

[35][36] The second stage with see job seekers introduced into the workplace through at least 120,000 four to twelve-week internships provided in cooperation with jobactive and participating businesses,[36][37] where businesses will receive an upfront payment of $1000 for each intern they take on,[35] and interns will be paid an additional $200 a fortnight, on top of their income support payments.