Net debt is projected to fall to A$319.27b by 2021/22.
An additional A$250m will go towards the Skilling Australians Fund to support growth in apprenticeships and traineeships.
An extra A$89m will create more than 40,000 Transition to Work places to support youths aged 15 to 21 at risk of long-term unemployment.
An additional A$8.3m will go towards helping veterans find civilian employment, while the Brotherhood of St Laurence will receive A$700,000 to establish a Youth Employment Body to create "best-practice youth employment service models".
Meanwhile, the number of "demerit points" jobseekers can accrue before being slapped with more intensive compliance requirements will be increased, at an estimated cost of A$7.6m over four years.
Budget infrastructure projects are also expected to create more than 28,000 jobs.
Tax relief for low and middle-income earners will kick in as soon as July 1.
People earning up to A$37,000 per year will get up to A$200 back in their tax return, and those on up to A$90,000 will receive a maximum of A$530.
The government also wants to change income tax thresholds over the next seven years to flatten out the tax system, meaning 94 per cent of Australians will pay no more than the marginal tax rate of A32.5c in the dollar.
Other highlights
Power
The government has pledged A$41.5 million ($44.3m) over seven years to ensure secure, reliable and affordable energy.
The National Energy Security Board estimates yearly power bills will be slashed by A$400 for the average Aussie household from 2020 under the government's national energy guarantee.
The government says it will do this by "ensuring the right electricity generation assets are built where they are needed".
Hospitals
The government is touting "record levels" of public hospital funding, including a public hospital agreement that will deliver more than A$30 billion in extra funding between 2020/21 and 2024/25.
The Medicare Guarantee Fund will receive A$34.4b and a new program to encourage doctors to move to regional areas will be introduced.
Schools
Schools are big winners this year, with needs-based funding to deliver an extra A24.5b over the next decade. That's 50 per cent more funding per student on average.
The government will also support businessman David Gonski's recommended curriculum reforms and new online learning tools.
The National Schools Chaplaincy program will win permanent funding, including an extra A$247m over four years, and will develop a focus on anti-bullying.
Transport
The government will spend big on rail and roads. The treasurer has announced a A$1b Urban Congestion Fund, designed to fund state-level projects that improve traffic flow.
Baby boomers
Employers who hire older Australians will receive a A$10,000 wage subsidy designed to combat age discrimination.
Pensions
Pensioners will soon be better off, with the Pension Loans Scheme set to be opened to all older Australians, including full-rate pensioners and self-funded retirees.
This means that retirement income can be boosted by up to A$17,800 per couple without losing the pension or other benefits.
The Pension Work Bonus will be extended, meaning pensioners can earn an additional A$1300 a year without affecting pension payments. It will now include self-employed Aussies who will now be able to earn up to A$7800 a year.
Young workers
Young workers may soon receive some missing cash. While people can consolidate multiple superannuation funds from different jobs through the myGov website, the tax office will begin proactively finding people's lost super to ensure it doesn't get eaten up in fees.
The government will also ban exit fees and stop funds charging people under 25 or with low balances for life insurance policies "they have not asked for or do not need".
Small business
The A$20,000 instant asset tax write-off will be extended for another 12 months to June 30, 2019, at a cost to revenue of A$350m over the next four years. Meanwhile, additional protection will be provided through an extension of unfair contract terms protections, and the new Australian Financial Complaints Authority will give more small businesses access to "free, fast and binding dispute resolution".
National security
The government is investing A$293.6m in aviation security to safeguard Australia against "evolving threats" in civil aviation. This will include A$50.1m to enhance security at 64 regional airports with new and upgraded screening technologies.
It will also spend A$121.6m to enhance screening of air cargo and international mail.
The government is also providing A$62.2m to deter people smuggling.
To tackle the increasing threat of cyber crime and terrorism, the government is also providing A$130m to identify threats via visa screening.
First-home buyers
This is not the Budget for first-home buyers. There are no major measures that address housing affordability, and some big announcements, such as measures to keep the elderly in their own homes and out of aged care, actually work against first home buyers.
Apart from a divesting scheme that will free up about 400 homes and boost land supply outside of Brisbane, there's nothing specific for would-be homeowners.
Environment
The government is investing more than A500m in the Great Barrier Reef to improve water quality, combat the coral-destroying crown-of-thorns starfish and conduct scientific research.
