Australian shares are expected to open lower on Monday as investors eye the country's last budget before the tightly contested federal election in May.

Last Friday, the Nasdaq Composite advanced 0.5%, while the S&P 500 and the Dow Jones Industrial Average were flat.

Australia's Treasurer Jim Chalmers will deliver the 2025 to 2026 budget on Tuesday night. The government has earmarked a further AU$1.8 billion for energy rebates, or around AU$150 each for households and eligible small businesses, Reuters reported Sunday. This comes amid a tight race in the general election, with the latest YouGov survey revealing that the two-party preferred vote remained tied at 50%-50%.

In macroeconomic news, the S&P Global Flash Australia PMI Composite Output Index rose to a seven-month high of 51.3 in March from 50.6 in February, data showed Monday.

In corporate news, James Hardie Industries (ASX:JHX) will acquire New York-listed Azek Co. for $8.75 billion in cash and scrip, according to a Monday filing.

Westpac Banking (ASX:WBC, NZE:WBC) plans to expand its defense industry lending from its new Frankfurt office, capitalizing on Europe's rearmament and Australia's rising military spending after Donald Trump's US election win, the Australian Financial Review reported Sunday, citing Nell Hutton, chief executive of Westpac's institutional bank.

Australia's benchmark index was little changed at 7,931.20 last March 21.