The government will target intergenerational wealth in this year’s budget, according to Treasurer Jim Chalmers.

Chalmers is reportedly set to shake up the capital gains tax by reversing the system to its old format that existed before the current 50 per cent discount was introduced in 1999.

WATCH THE VIDEO ABOVE: Jim Chalmers says intergenerational wealth will be addressed in upcoming budget

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The original capital gains tax system used indexation, adjusting asset values for inflation so tax applied only to a property’s real increase in value.

Chalmers teased a range of potential tax reforms on Monday during a press conference, laying the groundwork for an “ambitious” budget.

While details are yet to be confirmed, Chalmers said the government has been “really upfront” about its approach to wealth passed down between generations.

“We do think that there is intergenerational unfairness in the tax system and in the housing market,” he said.

“I think the housing market is where some of those intergenerational issues are most obvious.

“So we are working through a range of options to see if we can deal with them or address them in a responsible way.”

The treasurer added the government is “considering a whole range of changes in the tax system”.

“There’s more work to do on our options for tax reform in this budget,” Chalmers said, adding details will be revealed on budget night on May 12.

Jim Chalmers has teased intergenerational wealth as a target of this year’s federal budget. Credit: 7NEWS

The NDIS and superannuation will also be in focus at the forthcoming budget, which Chalmers described as “responsible ... focused on resilience and reform”.

“There will be tax reform, there will be a productivity push and there will be savings,” he said.

“Cutting compliance costs is a big focus of the government and a big focus of the budget as well.”

The NDIS will particularly see some changes as the treasurer plans to meet with counterparts from the states and territories on Tuesday.

“The NDIS is growing too fast for Australians to afford,” Chalmers said, adding it would cost an estimated $62 billion in the 2028-29 financial year.

“We’ve all got an interest in making sure that we provide that high standard of care in a way that we can afford in a sustainable way,” Chalmers said.

He said he has organised the budget in a way Australia can continue to afford “the important work of the NDIS” and that the scheme supports “all the people who work in the NDIS and benefit from the NDIS”.

Draft legislation for an instant $1000 tax deduction for millions of workers is also expected to be introduced to parliament, while Chalmers said he refused to budge on maintaining the superannuation performance test.

The government is expected to target income tax and the NDIS in the 2026 federal budget. Credit: James Ross/AAP

But the treasurer said the budget will be different to what the government had planned prior to the outbreak of war in the Middle East, which has put immense strain on the global economy.

“It won’t be exactly what we had planned over the summer. It would be strange if it was given how much has happened,” Chalmers said.

“From an economic point of view, the end of the war can’t come soon enough.

“But even if and when the ceasefire sticks, even when the war ends, even when the Strait (of Hormuz) is properly reopened, we don’t expect things to go back to normal straight away.

“The consequences of this war in the Middle East are already serious and there is still a risk that they become severe.”