Tuesday’s budget will include a migration overhaul, tax relief for small businesses and fresh efforts to cut red tape, in a push Treasurer Jim Chalmers says will save businesses money and boost Australian living standards.

Further uses for the digital identification system myID and a government-backed crypto token will also be considered in a wide-ranging productivity package Mr Chalmers said was “one of the most important parts” of his fifth budget.

“We won’t get the higher living standards we want and the wages we want unless we turn this productivity performance around,” he told the ABC in a pre-budget interview.

Productivity, a measure of our economic capacity which economists say must grow if Australia is to become richer over time,…