Thousands of workers blocked off part of Melbourne's Central Business District yesterday to call for better pay and work conditions.

The protest came a day after Australia released a generous federal budget that cut taxes and appeared designed to win over voters ahead of a looming election.

The slated tax cuts will provide up to A$530 (S$530) each for workers earning between A$48,000 and A$90,000 a year - a measure that a union leader likened to throwing "crumbs" to workers.

The protesting workers said they want a pay rise for low-and middle-income workers.