At the market close the benchmark S&P/ASX 200 index was up 74.30 points or 1.25 percent at 6,036.40, while the broader All Ordinaries index was up 75.40 points or 1.22 percent at 6,239.60.
"Locally, the improvements have been across the majority of sectors with the consumer sectors, both staples and discretionary leading advances," CommSec market analyst James Tao said.
"The federal budget handed down last night which brought forward stage two tax cuts by two years is seen as a positive for household consumption with Treasury estimates of an increase of 6.9 billion Australian dollars (4.92 billion U.S dollars) to disposable income in 2021. "
The heavyweight stocks were mostly higher, however, the major minors are a slight drag.
In the financial space, the big banks surged with Commonwealth Bank up (2.15 percent), National Australia Bank up (1.97 percent), Westpac Bank up (2.59 percent) and ANZ up (2.35 percent).
Mining stocks were mixed with BHP down (1.10 percent), Rio Tinto up (0.05 percent), Fortescue Metals down (0.06 percent) and gold miner Newcrest down (2.13 percent).
The country's oil and gas producers varied with Oil Search up (2.15 percent), Santos unchanged (0.00 percent) and Woodside Petroleum up (2.06 percent).
Australia's largest supermarkets surged with Coles up (1.43 percent), and Woolworths up (2.00 percent).
Meanwhile telecommunications giant Telstra lifted (0.71 percent), the national carrier Qantas sank (0.69 percent) and biomedical firm CSL surged (1.69 percent).
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