Budget tax cuts a test for confidence

Colin Brinsden, AAP Economics Correspondent
Budget tax cuts cheered up consumers with confidence jumping to the highest level since February

Last week's federal budget may not have put the Turnbull government in an election-winning position but two opinion polls did find more voters believing they will be better off than not under its personal income tax plan.

Consumer confidence - a pointer to future retail spending - had risen for four straight weeks heading into the budget anticipating Treasurer Scott Morrison would deliver his promised tax cuts.

However, whether a $10 a week tax reduction for average wage earners will be enough to retain the positive mood will be gauged when the weekly ANZ- Roy Morgan consumer confidence index is released on Tuesday.

The monthly Westpac-Melbourne Institute consumer sentiment index is due on Wednesday.

Also on Tuesday, the Reserve Bank will release the minutes of its May 1 board meeting, where the cash rate was left at 1.5 per cent for another month.

There is unlikely to be too much new in the minutes given the central bank has issued its quarterly monetary policy statement and governor Philip Lowe has delivered a major speech since the board meeting.

However, Treasury secretary John Fraser, a member of the board, traditionally previews the outline of the budget for the meeting in the context of what it might mean for monetary policy in the future.