Category: Australian News

After five Labor Budgets, Australians are paying more, working harder, and going backwards.

This is a Budget with higher taxes, more debt, more division and no plan to restore Australians’ standard of living or protect our way of life.

The Budget confirms Anthony Albanese and Jim Chalmers are the owners of the highest taxing government in Australia’s history.

This Budget sees the economy burdened with $50 billion of higher taxes including $15 billion in higher personal income taxes.

The Budget also confirms that government spending will remain at its highest level in 40 years, outside of the pandemic.

In another blow to households, the Budget confirms home grown inflation compounded by international factors will hit 5 per cent, well above the RBA’s target band of 2 to 3 per cent, which means interest rates will continue to be higher for longer.

It confirms that living standards will go backwards again, confirming Australians with a typical mortgage are $32,000 a year worse off under Labor even after this Budget.

All families are also feeling the pain of wages not keeping up with Labor’s inflation, with the Budget revealing the buying power of Australians’ wages has declined by 3 per cent under this government.

Once again Labor have blown their own immigration targets, by the end of their first two terms they will have bought in 2 million migrants including overshooting its target by another 90,000 over the next two years. 

Australians are still staring at a decade of deficits, with debt forecast to hit $1.25 trillion.

The yearly interest bill on that debt will hit more than $42 billion or $80,000 per minute.

The Budget also confirms Labor’s housing taxes will reduce the supply of homes by 35,000 over the decade, whilst also increasing rents. 

We have consistently said if you tax something more you get less of it – and Labor’s own budget papers confirm that in relation to housing.

Shadow Treasurer Tim Wilson said the Budget only delivers debt, division and decline.

“This is a Budget of broken promises, higher taxes, lower living standards and fewer homes,” Mr Wilson said.

“It fails Australia’s future economy and has failed the basic test of restoring honesty, Australia’s security and living standards. It pulls the ladder of opportunity up from young Australians before they get their first foot on the rung.

“This Budget is taking from the future to feed Labor’s spending addiction today by taxing growth and opportunity, and adding more debt.

“Restoring honest government should be the easiest test to meet because it involves saving money, but the Treasurer has started Budget season in a trust deficit to match his Budget deficits by openly betraying Australians on new taxes.

“Labor governs for themselves, not Australians, and this Budget is designed to feed their outdated economy, not build the economy Australians will need in the future.

“Australians are living the consequences of Jim Chalmers’ active inflation agenda where he stokes inflation, taxes the inflation and then spends the inflation, eating away at Australians’ living standards. 

“The Albanese government is ignoring warnings from the Reserve Bank and the International Monetary Fund and doubling down on pouring debt petrol on the inflation fire.”

Shadow Finance Minister Claire Chandler said the Albanese government’s attempt at economic reform was really just a cash grab.

“This is a Budget with higher taxes, more debt, more division and no plan to restore Australians’ standard of living or protect our way of life,” Senator Chandler said.

“It is clear when you take a look under the hood, this budget that doesn’t do what it says on the box – it’s simply a tax on Australians trying to get ahead. 

“The Budget and the government’s higher taxes will do nothing to increase productivity and nothing to improve living standards. 

“This is a Budget that projects deficits because Labor cannot control their spending addiction, and that passes the bill onto the next generation of Australians through higher taxes into the future. 

“This government is the master of betrayal. They promise savings in one breath and then spend more in the next.

“Jim Chalmers claims $221 billion in savings, yet this Budget shows the government has also gone on a $324 billion spending spree.” 

“For the last four years, the Albanese government has failed to get its spending under control, and tonight’s budget is no different. The Budget confirms that government spending is still growing twice as fast as the rest of the economy, and it will be young Australians who have to pay the price of that through higher taxes.”

On Thursday night, Opposition Leader Angus Taylor will deliver the Budget in Reply and outline the Coalition’s plan for a Better Australia.

A plan to restore Australians’ standard of living.

A plan to protect our way of life.

A plan to back hard work, reward aspiration, grow the economy and get Australia on the right track.

Australians cannot afford more broken promises, more taxes, more debt and more division.

The Albanese Labor Government has secured approximately 90,000 tonnes of agricultural grade urea for Australian farmers, producers, and our agriculture industry to keep Australia’s food supply chain moving.

Through Export Finance Australia (EFA), the Government has partnered with CSBP and Incitec Pivot to support the purchase of these first three shipments of additional fertiliser.

These are the first shipments of fertiliser secured under the Albanese Labor Government’s new Strategic Reserve powers, as part of the Government’s work to help Australia’s agriculture industry manage the impacts of the conflict in the Middle East.

More shipments are expected to be secured in the coming weeks.

This additional supply builds on the 250,000 tonnes of new fertiliser supply locked in with Indonesia through PT Pupuk, secured by the Albanese Labor Government in partnership with Incitec Pivot.

This extra fertiliser gives greater certainty for farmers as they make planting and growing decisions, ensuring domestic and export food supply.

Under the new Strategic Reserve powers, EFA is also progressing discussions with other businesses in order to help them secure, ship and distribute fertiliser into our domestic market.

In addition to these new fertiliser shipments, the Albanese Government has also announced: 

• $7.5 billion for the establishment of a Fuel and Fertiliser Security Facility to increase supply and storage of fuel and fertiliser by providing financial support including loans and price support.
• A Joint Leaders’ Statement with Brunei Darussalam committing to cooperation on food security and resilient supply chains for food production.
• Establishing a Fertiliser Supply Working Group between Government and industry.
• Streamlining border processes for imported fertiliser.

So far, the Albanese Government has secured over 450 million litres of additional diesel and 100 million litres of additional aviation fuel under new financing to keep Australia moving.

the Prime Minister Anthony Albanese

“We’re backing Australian farmers and producers during this time of global uncertainty.

“We know how critical fertiliser is for the sector, which is why we’re securing important additional shipments like this.”

Minister for Trade and Tourism, Don Farrell

“This is another example of the Albanese Government providing practical and timely assistance to Australian farmers at a time of intense global supply disruptions.

“Our hard-working farming communities can be assured that we will leave no stone unturned to help secure the inputs needed to keep them moving and produce the best food and fibre in the world”

Minister for Agriculture, Fisheries and Forestry, Julie Collins

“Underwriting additional shipments of fertiliser is about ensuring our farmers can continue producing the food we all love and rely on.

“This is positive news for our farmers and means they can continue planting with confidence during this current season and know that additional supply is on the way for the future.

“Having access to critical inputs like fertiliser underpins the food security of Australia and the countries we export to, particularly in the Indo-Pacific region, which is why we’ve been working day and night with industry to get fertiliser to our farmers.”

Minister for Minister for Industry and Innovation and Minister for Science, Tim Ayres

“This is the Albanese Government building Australia’s resilience – through timely, practical and responsive action to secure vital agricultural fertilisers and keep Australia’s food supply chain moving.”

I am pleased to announce the Governor-General has appointed Ms Jacqui Curtis PSM as the Australian Public Service Commissioner.

Ms Curtis is a senior leader in the Australian Public Service and brings extensive experience to the role. Ms Curtis is currently the Chief Operating Officer of the Australian Taxation Office, having held the role since 2016. 

She previously held senior roles at the ATO and the former Department of Human Services.

Ms Curtis also holds the whole-of-APS role of APS Head of Profession for Human Resources, with responsibility for lifting professionalism, capability and ethical standards at system scale.

Ms Curtis was awarded a Public Service Medal in 2022 for outstanding public service in driving change and building capability in the APS as inaugural Head of the APS Human Resources Profession. 

Ms Curtis’ term will commence on 9 June 2026 for a five-year period.

We would like to thank Dr Gordon de Brouwer PSM for his service and leadership as Commissioner. We would also like to thank Dr Subho Banerjee for acting as Commissioner since February 2026.

The 2026-27 Budget delivers on the Albanese Labor Government’s recently released 2026 National Defence Strategy and Integrated Investment Program outlining an additional $14 billion over the next four years and $53 billion over the decade that the government has invested in Defence in recognition of Australia’s strategic environment. 

As the Government has made clear, we identify the capabilities we need to keep Australians safe and we fund them appropriately.

The 2026 National Defence Strategy builds on the Government’s strong track record in Defence investments. Together with the additional investments in 2024, the Albanese Government is investing a record additional $30 billion over the forward estimates and $117 billion over the decade.

This brings total funding in the portfolio to $887 billion to 2035-36 including for the Australian Signals Directorate, the Australian Submarine Agency and the Australian Naval Nuclear Power Regulator.

Of this, the Government is investing $425 billion over the decade to deliver accelerated capability for the integrated, focused force – to increase the ADF’s self-reliance and contribute to regional deterrence.

This additional investment from the Albanese Government through the 2024 NDS and the 2026 NDS is the largest peacetime increase in defence spending in our nation’s history, and delivers critical Defence projects that underpin Australia’s maritime capability and defence industrial strategy, including the Henderson Defence Precinct, the Nuclear-Powered Submarine Program and General Purpose Frigates.

The Government has identified around $5 billion over the forward estimates and $15 billion over the decade in projects for which Defence will prioritise developing alternative financing options as part of the additional investment in the 2026 National Defence Strategy. 

This includes projects in the Defence estate, the Henderson Defence Precinct and the Guided Weapons and Explosive Ordnance enterprise.

Appropriately funding Defence to keep Australians safe is also creating tens of thousands of well-paid local jobs right across Australia and across the supply chain. It also means a growing ADF with recruitment surging to the highest in more than a decade.

We’re continuing to deliver on the Albanese Government’s response to the Royal Commission into Defence and Veteran Suicide with an allocation of more than $770 million in additional funding to deliver on Royal Commission recommendations. 

This funding includes $169.7 million funding over five years to increase fees for allied health providers from 1 July 2027, the largest investment in allied health fees for veterans in over 20 years. 

This Budget will provide $29.8 million to support the establishment of a National Veterans’ Data Asset, and $16.6 million for the Defence and Veterans’ Service Commission to conduct an independent Inquiry into Military Sexual Violence in the Australian Defence Force from the middle of 2026. 

The record investment in Defence is also matched by historic reforms to ensure there is a renewed focus on value for money and greater speed to capability, including through the establishment of the Defence Delivery Agency on 1 July 2027.

The Albanese Labor Government continues to make historic investments in Defence, to keep Australians safe.

Staff at Bathurst, Orange and Bloomfield hospitals told an inquiry today about the failures of their profit-driven management model, including a staff member being repeatedly threatened with sexual assault by a patient and kept on the same ward by her supervisor until she quit, and medical and other inappropriately trained staff being relied on to respond to security incidents due to understaffing.

The NSW parliamentary inquiry into the issues at Calvary Mater Hospital in Newcastle heard from staff and union representatives about three hospitals operating under another public-private partnership.

Bathurst, Orange and Bloomfields hospitals are public hospitals where non-clinical services like cleaning and security are managed by ASX-listed firm, Downer Group.

Greens spokesperson for Health and Chair of the inquiry Dr Amanda Cohn said:

“We heard even more evidence that profit motives in public health care are compromising staff and patient safety.”

The committee heard serious allegations about patient and worker safety, including bullying and harassment, and “the absolutely disgusting” state of the wards, including mould in an area serving immunocompromised patients.

Karl Banham told the hearing he worked for NSW Health for 16 years as a plumber and now as a health security assistant at Orange Hospital.

“Mould has been found on roof, panels and walls, resulting in the closure and air around the renal dialysis area,” he said. “How can we be letting this happen in a public health area?”

Robert Danelon is employed by NSW Health as a wardsperson at Bathurst Hospital. He described how the hospital’s 18-year-old beds moved “more like dodgy shopping trolleys and less like modern, specialised beds designed to carry patients” causing him two separate injuries.

“Why are taxpayers paying Downer to manage our hospital if they can’t even replace faulty ward beds?” he said. “I love my job, but I do not love the working environment that Downer has created.”

Staff and union representatives described widespread bullying, intimidation and micro-management by Downer staff. Formal complaints are handled by Downer internally, with workers describing outcomes as dismissive and inadequate.

Health Services Union Assistant Secretary Lauren Hutchins told the committee that two thirds of HSU members managed by Downer have not reported a workplace issue due to fear of management retaliation.

Donna Stedman, a hospital assistant at Bloomfield Hospital in Orange, spoke of her experiences being bullied. “I was belittled, yelled at, accused of stealing, had my job threatened… my supervisor remained silent.”

“The culture of arse-covering within Downer is scary,” she said.

Dr Cohn said the evidence shared by the hospital staff and union assistant secretary raised serious alarm bells.

“The tragic and preventable death of toddler Joe Massa prompted the NSW government to bring the Northern Beaches Hospital back into public hands,” Dr Cohn said.

“This time, the government shouldn’t wait for a tragedy. The Greens are ready to support the Minns Labor government to walk the talk on privatisation and bring the Calvary Mater Hospital back into public hands, and the Orange, Bathurst and Bloomfield hospitals back into fully public management.”

The hearing coincides with Premier Chris Minns posting on Facebook today about Labor successfully bringing Northern Beaches Hospital back into public hands. He wrote: “When something isn’t working, you fix it… The community deserves certainty, accountability and world-class healthcare.”

In their first budget of the term, Labor has chosen corporate profits over people, by delivering real cuts to services while allowing corporate profits to grow unchecked.

Labor’s fifth budget fails to include a tax on gas exports, which would have been worth at least $17b in revenue to the bottom line. Instead, Labor has chosen to gut critical services including the NDIS, climate, clean energy manufacturing, and to keep people on poverty level income support.

The changes to tax breaks for wealthy property investors tinker at the margins, when the housing crisis is compounding in urgency and requires significant reform. The Labor government has quarantined all of the tax handouts for existing property investments. This is a capitulation to the 1% and a missed opportunity that is unlikely to ease the housing crisis.

Labor’s self-proclaimed biggest cost of living relief measure in this budget, the Working Australians Tax Offset, equates to $4.81 a week and won’t hit people’s pockets until 2028.

While people are bearing the cost of inflation they didn’t cause, big corporations push up the cost of living and get special treatment from Labor.

People will be set back by Labor’s budget by:

• The “biggest cost of living relief measure in this budget”, the $250 WATO, equates to $4.81 a week and people won’t see a cent of this until 2028
• $37.8 billion in cuts to the NDIS, which will see at least 160,000 people lose critical disability supports
• Nothing for renters or people experiencing homelessness
• No new money to actually build housing, except for $110m for defence housing for US and UK troops under AUKUS
• $4 billion in deep cuts to climate transition – the biggest rollback since the Morrison government, including:
  • $1.7b from electric vehicles
  • $2.2b of cuts to climate and the environment:
    • $255m cut from ARENA
    • Cuts to the domestic manufacturing of solar, batteries and hydrogen
• No increase to any income support payments – Jobseeker, Youth Allowance, Age Pension or any other payment
• No funding for the National Anti Racism Framework

Whereas Labor has backed big corporations and the 1% by:

• Refusing to tax the exports of gas corporations, forgoing at least $17 billion in revenue
• Over the last decade, corporate profits in Australia have grown at almost double the rate of wages
• Leaving intact tens of billions in existing tax handouts for wealthy property investors through grandfathering, and including tax minimisation loopholes for property investment going forward
• $53 billion in additional defence spending, a significant amount of which will go to AUKUS
• $46 billion over the forwards for fossil fuel subsidies and $5 million this year to support new gas projects
• Almost $1b on offshore processing last year, nearly $400m than previously budgeted, and a further $600m budgeted for the coming year, all to brutalise around 100 people

Senator Larissa Waters, Australian Greens Leader said:
“Tinkering around the edges of a broken system and spending billions for corporations and the 1%: that will be the legacy of the Albanese-Labor government.

“Labor should have used this budget to claw back the obscene profits of big corporations to pay for the things we all need. Instead they’re leaving $17 billion a year in the pockets of big gas corporations.

“This budget contains nothing for renters, no new money to build housing except for US and UK troops, and their biggest cost of living measure will add up to $4.81 a week that you’ll see in 2028.

“And because Labor blinked on taxing big corporations and the wealthiest 1%, at least 160,000 people will lose access to critical, lifesaving disability support through the NDIS.

“This budget should have taxed gas exports. Instead they’ve cut $4 billion from the climate transition, and allocated $46 billion to fossil fuel subsidies.

“The government’s planned changes to negative gearing and capital gains tax discount look like little more than tinkering around the edges of a broken system. These changes will still give tens of billions of dollars in handouts to wealthy property investors to outbid renters at auctions around the country every weekend. This should have been a significant reform but instead it’s a damp squib.

“With this Budget, Labor have made their priorities clear. Instead of delivering for people, Labor has been captured by big corporations and the wealthiest 1%.

“Only the Greens are fighting for people over profits. Only the Greens will put the interests of renters, first homebuyers and mortgage holders, disabled people and people on income support, and the climate first, while Labor continues to deliver for the profits of their corporate donors and the wealthiest 1%.”

Senator Nick McKim, Greens Economic Justice spokesperson said:
“Labor has chosen to back big corporations and the 1% over everyday Australians and young people who are being ripped off by the tax system.

“Jim Chalmers clearly has a different definition of ‘ambitious’ than millions of Australians.

“In the face of a generational opportunity to respond to inequality and the housing crisis, Labor’s changes to negative gearing and the capital gains tax discount are abjectly lacking in courage and ambition.

“This budget betrays the overwhelming majority of Australians. By refusing to impose a gas export tax to fund essential services, Labor will fuel people’s anger at a system that isn’t working for them.

“We had a rare political opportunity to fix property investor tax breaks, capture massive gas export profits and rebuild a fairer country, but Labor’s corporate donors have won out once again.

“It’s getting harder to get ahead in Australia, but if you’re one of Australia’s 161 billionaires who are making $29 million a day, you’re having a great time.

“While most of us work harder trying to get ahead, the ultra-wealthy buy up assets, and their wealth grows in their sleep. This budget keeps on growing the gap between the 1% and the 99%.”

Senator Barbara Pocock, Greens Finance, Housing and Homelessness spokesperson said:
“This budget does nothing for ordinary people – renters, first-home buyers and mortgage holders – who are struggling to keep a roof over their heads. It does nothing for the homeless.

“The housing tax changes grandfather inequality. They protect the unfair wealth hoarding of wealthy multi-property investors and the 1%.

“Once again, Labor has over-promised and under-delivered on housing for young people, for renters, and for first-home buyers.

“This budget contains nothing for people on income support, and no new money to build housing except $110m for defence housing for US and UK troops under AUKUS.

“In this budget, Labor’s chosen to make ordinary people bear the brunt of the economic and housing crisis.

“Corporate profits are driving up inflation and the cost of living, but Labor hasn’t taxed them – instead, they’re giving corporations tax breaks if their profits go backwards.

“This budget reveals Labor’s mindset. Protect wealthy property investors, even if that leaves everyone else worse off.

“The Greens will fight against Labor’s cuts to essential services, public service jobs and the NDIS – people shouldn’t have to pay for inflation while big corporations continue to make obscene profits.”

The Albanese Labor Government is taking decisive action in the Budget to boost housing supply, make our tax system fairer to help more Australians into homeownership and build on our work over the last four years to build more houses.  

This is about building more homes, helping more Australians realise the dream of homeownership and giving younger Australians a leg up in the housing market.  

We know it’s too hard for too many Australians to buy their own home and get ahead.

That’s why we’re investing in building more homes, making our tax system fairer and putting first home buyers ahead of foreign investors.

Reforms in this Budget to make the tax system fairer will help 75,000 homeowners into the housing market over the next decade.  

We’re coming at this housing challenge from every responsible angle, and this Budget builds on our ambitious housing agenda.

Our housing plan is pro-aspiration and it’s pro-investment.

Labor’s plan for a housing system that works for Australians 

• Helping Australians buy a home:  We’re levelling the playing field for first home buyers and making the tax system fairer by helping more Australians buy their own home. Combined with our 5% deposit program, we’re shifting the scales in favour of aspiring first home buyers. 
• Building more homes, more quickly: We’re tackling the housing shortage from every angle – investing a further $2 billion in enabling infrastructure, speeding up housing approvals and cutting red tape, and increasing the skilled construction workforce. 
• Banning foreign investors from buying existing homes: We’re extending the ban on foreign investors buying existing homes until mid-2029, helping more Australians into homes. 
• Making renting fairer and more affordable: We’re continuing our work with the states and territories to get renters a better deal by strengthening renter protections and expanding long-term rental supply. We have also boosted Commonwealth Rent Assistance by more than 50 per cent.  
• Backing Australians doing it toughest: We’re supporting at risk young people to get into secure housing and we’re continuing to deliver more social and affordable homes through the Housing Australia Future Fund.

This is about one goal: More Australians in a home – whether they own or rent.

We’re backing this plan with serious investment, lifting our total housing commitment to a record of over $47 billion. 

This is the largest and most comprehensive housing plan Australia has seen in generations.

Helping Australians buy a home 

It’s too hard for too many Australians to buy their own home and get ahead.

That’s why we’re providing tax relief to workers and giving more Australians the opportunity to own their own home by making our tax system fairer.

We will limit negative gearing for residential property to new builds from 1 July 2027. Arrangements will remain unchanged for all existing investments made before 7:30pm AEST 12 May 2026.

We will replace the 50 per cent capital gains tax (CGT) discount with inflation-adjusted indexation from 1 July 2027, to restore the taxation of real gains, and introduce a minimum tax rate of 30 per cent on realised gains. This will apply to all assets except new homes, where both new and old arrangements will be available. It will be prospective, with gains accrued on existing investments prior to the start date to retain the 50 per cent discount. 

Our tax changes will help around 75,000 homeowners into the market over the next decade and are part of a package of housing reforms in this Budget that will boost housing supply. 

They will help level the playing field for first home buyers and build on the strong support we are already delivering through the expanded 5% Deposit Program and the introduction of Help to Buy. Together, these programs now mean that more than half of all first home buyers are entering home ownership with the support of the Albanese Government.

Building more homes, more quickly

Building more homes is the main game when it comes to addressing Australia’s housing challenge.

That’s why new builds are exempt from the tax changes, to steer investment toward increasing supply. This means investors purchasing new housing can continue to access negative gearing and can choose between the 50 per cent discount and the new indexation arrangements. 

More infrastructure funding

We are investing a further $2 billion in housing enabling infrastructure to address one of the key barriers holding back more housing supply.

This funding will establish a new Local Infrastructure Fund as part of the Housing Support Program, to unlock the enabling infrastructure needed to finish housing projects that otherwise wouldn’t go ahead due to a lack of enabling infrastructure including roads, water, power and sewerage. 

This funding will be provided to local governments and state utility providers, with $500 million reserved just for regional Australia.

The Local Infrastructure Fund will support up to 65,000 homes over 10 years. 

This $2 billion investment brings our total investment in housing enabling infrastructure to a record $6.3 billion since coming to government. 

And we have a further $5.9 billion available to states and territories as part of the 100,000 Homes for First Home Buyers program.

Faster approvals and less red tape

Access to the Local Infrastructure Fund will be linked to further state-based reforms to improve productivity in the housing sector – including faster and simpler approvals, making more land available and ready to build homes, and delivering a genuinely national construction code.

These reforms have the potential to support tens of thousands of additional homes and could reduce regulatory costs by up to $3 billion per year. 

We’re also making it easier to build by making all standards referenced in Australian legislation free, including mandatory construction standards, as part of our work to streamline the National Construction Code. 

Important regulations should not sit behind a paywall. This change will save builders and tradies up to $1,600 per year. 

Building on the momentum of the EPBC strike team set up last August, the Government will provide over $45 million to progress bilateral agreements with states and territories. This will cut red tape and duplication by combining federal and state assessments and approvals, ensuring proponents can benefit sooner from quicker, more efficient environmental approvals, while maintaining strong environmental safeguards. 

This is on top of an additional $250 million in this Budget to accelerate and streamline environmental approvals processes, unlocking investment in national priority areas including housing.

More tradies in construction

We’re investing $85.2 million to accelerate skills assessments for skilled migrants in trades industries and to better integrate occupation licensing with the assessment process. Once implemented, this could cut the time taken to enter the workforce by up to 6 months.

The investment will also provide a new pathway for migrant workers already onshore to have existing qualifications and practical trades experience recognised, helping to address workforce shortages. 

This builds on our work to train more tradies, through Free TAFE and the $10,000 incentive for apprentices training in the residential housing sector. 

These actions build on our comprehensive supply agenda. We have set an aspirational target, with all levels of government and industry, to build 1.2 million homes over five years.

Banning foreign investors from buying existing homes

We’re extending the ban on foreign investors buying existing homes until mid-2029, meaning Australians will be able to buy homes that would have otherwise been bought by foreign investors.

Current limited exceptions to the ban for purchases of established dwellings that support housing supply will continue. 

Making renting fairer and more affordable

Renters should be able to experience the stability that makes a house into a home. 

That’s why we’re continuing to work with the states and territories to implement National Cabinet’s Better Deal for Renters. 

As a result, most states have now banned ‘no grounds’ evictions, limited rent increases to once per year and set minimum rental standards. 

Our Build to Rent tax incentives are also helping to unlock more long-term rental housing right across the country. 

And we continue to support Australians doing it tough through Commonwealth Rent Assistance. Since coming to government, we have increased Commonwealth Rent Assistance by more than 50% for over 1.4 million Australian households.

Backing Australians doing it toughest

Too many young people, who are at most risk of homelessness, are locked out of social housing due to a structural inequity that makes it harder for Community Housing Providers to house them.

That’s why we’re investing $59.4 million to supplement rental income for Community Housing Providers delivering social housing for over 4,000 young people, aged 16-24, who are in receipt of the Away from Home rate of Youth Allowance or ABSTUDY and who are at risk of, or experiencing, homelessness.

This investment will change lives – helping vulnerable young Australians escape homelessness, addressing intergenerational housing inequality, and easing cost-of-living pressures. 

We’re also continuing to roll out our ambitious social and affordable housing agenda, delivering 55,000 social and affordable homes right across the country. 

And in this Budget, we are releasing a further $100 million from the Housing Australia Future Fund to improve the quality of housing for First Nations Australians in remote communities.

After a decade of inaction, we’re taking decisive action to boost housing supply and help more Australians into homes.

This Budget is all about resilience and reform, and helping more Australians into homes is an important part of our agenda.

The Albanese Labor Government is delivering a new round of tax cuts, helping more Australians realise the dream of home ownership and supporting investment and innovation through the most significant tax reform package in more than a quarter of a century.

This is about tax relief and tax reform to make our economy work in the interests of more Australians, businesses and future generations.

This tax package is pro-aspiration, pro-worker and pro-investment.

It’s about helping workers, first home buyers and businesses so more Australians can earn more, keep more of what they earn, get into the housing market and get ahead.

We are reducing the tax burden for over 13 million workers, supporting 75,000 more homeowners into the housing market, delivering over $3.5 billion in new measures that lower taxes for businesses and reducing compliance costs by $540 million a year.

We’re doing this through a tax reform package with three parts: 

• A fairer tax system for workers, first home buyers and future generations
• A better tax system for business by encouraging investment and innovation
• A simpler and more sustainable tax system

Our changes will build a better, fairer, simpler tax system for all Australians.

A fairer tax system for workers, first home buyers and future generations 

This is all about backing the Australian ambition of owning your own home.

Right now, it’s too hard for too many Australians to get into the housing market and get ahead.

That’s why we’re providing tax relief to workers and delivering reforms to give more Australians the opportunity to own their own home by making our tax system fairer.

These changes build on our existing housing reforms to help level the playing field for first home buyers, help preserve the gains investors have made and incentivise productive investment in areas like new housing supply.

They will bring tax outcomes for trusts closer to the rates that apply to the vast majority of Australian workers, help pay down debt and help fund tax relief for every Australian worker and the services they rely on.

We are: 

• Delivering a new Working Australians Tax Offset (WATO) to provide a permanent annual $250 tax offset to all eligible Australian workers. This begins to apply for income earned from work for the second half of 2027 and will automatically reduce workers’ tax liability for the 2027-28 income year. The Government is also introducing a $1,000 instant tax deduction to allow workers to deduct up to a thousand dollars off their taxable income without keeping receipts. These measures build on the legislated tax cuts starting in July 2026 and July 2027.
• Limiting negative gearing for residential property to new builds from 2027-28. Arrangements will remain unchanged for all existing investments made before 7:30pm AEST on 12 May 2026.
• Replacing the 50 per cent capital gains tax (CGT) discount with inflation-adjusted indexation from 1 July 2027 to restore the taxation of real gains, with a minimum tax rate of 30 per cent on realised gains. This will apply to all assets except new builds, where both new and old arrangements will be available to choose from. It will be prospective, with gains accrued on existing investments prior to the start date to retain the 50 per cent discount. 
• Applying a minimum 30 per cent tax rate on discretionary trusts from 2028-29, to create a more equal and sustainable treatment between workers and families who earn a living from wages and people with income from assets held in trusts.

Our new Working Australians Tax Offset (WATO) will benefit 13.3 million Australian workers and lift the effective tax-free threshold for eligible workers by almost $1,800 – the largest permanent increase to the effective tax-free threshold since 2012-13 – helping to support workforce participation.  

Changes to the tax system will help around 75,000 homeowners into the market over the next decade, equivalent to reversing around a decade of declines in Australia’s home ownership rate, and when combined with our other housing reforms in the Budget, will support another 30,000 new homes over 10 years.  

These changes are prospective, respect past investment decisions, won’t change tax arrangements for the family home or superannuation and support investment in new housing supply.

They sensibly manage housing market and broader economic impacts including through fair and reasonable transitional arrangements.   

Our changes to the taxation of discretionary trusts will make the tax system fairer and more sustainable by aligning tax paid by trusts more closely to the income tax rates paid by the vast majority of Australians.

Together, these changes are all about making our tax system better and fairer for all Australians.

A new $250 Working Australians Tax Offset 

The Government will deliver a new round of tax cuts for 13.3 million working Australian taxpayers through a new $250 Working Australians Tax Offset (WATO).

The new offset will provide responsible cost of living relief and help make the tax system fairer for workers.

The offset will be available for all workers for tax years starting on or after 1 July 2027, paid automatically in workers’ tax returns at the end of the year.

The new offset will help Australian workers to keep more of what they earn, incentivise participation for lower-income workers and help with the cost of living.

This builds on the twin tax cuts legislated by the Albanese Government that are still to come in 2026 and 2027 and our $1,000 instant tax deduction.

The combined benefit to an Australian worker on average earnings of our three tax cuts, new tax offset and instant tax deduction will be up to $2,816 from 2027-28.

Reforming negative gearing to support new housing supply

We are limiting negative gearing for residential property from 2027-28 so it can only be used for new builds.

Over 80 per cent of new investor lending goes to existing homes, and we want more investment to back the construction of new supply.

Our negative gearing changes put homeowners first and will help more Australians get a foothold in the housing market.

Existing arrangements will remain unchanged for all properties purchased before 7:30pm AEST tonight, 12 May 2026, until they are sold.

This means all Australians who currently negatively gear or own an investment property will not see any change to these arrangements. They will still be able to deduct rental losses on these properties against other taxable income, like a salary, to reduce their overall tax liability.

For people who want to invest in existing property after the start date, they will still be able to deduct losses against residential property income, like rent or capital gains, but not broader income like a salary.

Investors will be able to carry forward losses to offset residential property income in future years. People who invest in eligible new builds after the start date will still be able to deduct rental losses from those properties against other taxable income.

Improving tax arrangements for capital gains 

We’re fixing the tax treatment of capital gains so that it operates as originally intended, helping to ensure investment flows where it’s most productive. 

Returning to indexation will mean in future, only real capital gains are subject to tax, supporting investment in assets like medium-density housing.

We’ll also introduce a minimum tax of 30 per cent to capital gains accrued from 1 July 2027, after indexation has been applied.

These changes will apply to all assets except new builds, where both new and old arrangements will be available to be chosen from 1 July 2027.

Further consultation will be undertaken with stakeholders to settle the details for implementation, including the treatment of early-stage and start-up businesses given the unique features of the tech and start-up sector.

These changes apply prospectively from the start date. The 50 per cent discount will still apply to gains accrued on eligible existing investments prior to the start date, regardless of when the gain is realised.

Most capital gains are made by people with high lifetime income, but because gains are taxed on realisation, there’s flexibility to sell assets when it’s most tax advantageous.

About a third of all net capital gains income is realised by people who are in the top one per cent of earners during their working life, and more than half of net capital gains income is earned by those in the top 10 per cent.

Introducing a minimum 30 per cent rate will ensure everyone pays a fair share when they make a capital gain. Income support recipients, including pensioners, will be exempt from the minimum rate.

A minimum tax rate on capital gains will reduce the incentive to hold onto an asset to realise a gain when it’s most tax advantageous and ensure a fair amount of tax is paid on capital gains, in line with lifetime incomes.

Overall, these reforms will mean some investors with lower gains relative to inflation pay less tax, while some with large gains well above inflation will pay more, and the tax treatment of capital gains will be more consistent regardless of when assets are sold.

Since the Howard Government introduced the 50 per cent CGT discount in 1999, house prices have increased by more than 400 per cent – almost twice as fast as average full-time earnings – and the home ownership rate among 25-34 year olds declined by 7 percentage points from 2001 to 2021.

This reflects a broad range of forces. Supply has not kept pace with rising demand, but tax settings have also played a role.

Since the discount was introduced, the share of Australians owning shares outside of super has also declined almost 20 percentage points.

These reforms are also expected to improve the efficiency of investment decisions, as they are more likely to be made for economic reasons rather than tax outcomes.

Around 83 per cent of the benefit of the current CGT discount goes to those in the top 10 per cent of taxpayers by income.

These changes will help more Australians into homes and make our tax system fairer and more sustainable.

Fairer tax arrangements for discretionary trusts 

The introduction of a 30 per cent minimum rate will mean a fairer and more sustainable rate of tax paid on discretionary trust income.

Currently, discretionary trusts allow some Australians, often high wealth individuals and families, to plan their tax affairs in ways that aren’t available to most people.

In 2022–23, on average, families with discretionary trusts faced an average tax rate around 4 percentage points lower compared with families on similar incomes that don’t use trusts.

There are legitimate reasons to use trusts, such as succession planning and asset protection, but the current settings are becoming unsustainable with the number of discretionary trusts more than doubling over the past 20 years.

These reforms won’t change or limit the use of trusts for legitimate reasons, but will more closely align the tax rates for trusts with the rates paid by workers and families who earn a living from wages.

This will help fund important reforms like the latest round of income tax cuts and mean ordinary workers carry less of the burden in the tax system.  

The minimum tax won’t apply to other types of trusts that don’t offer the same flexibility like fixed and widely held trusts, charitable and special disability trusts, or complying superannuation funds. It also won’t apply to deceased estates, primary production income, certain income relating to vulnerable minors, and income from assets of discretionary testamentary trusts existing at announcement.

We will provide expanded rollover relief for three tax years starting on 1 July 2027 so that businesses and individuals using a trust can restructure their affairs ahead of the start date if they want to.

The overwhelming majority of Australians don’t receive income from a trust, and they shouldn’t be disadvantaged because of it.

Over 90 per cent of private trust wealth is held by the wealthiest 10 per cent of households.

These reforms will make the tax system fairer, more sustainable and help fund tax cuts as well as the essential services Australians rely on.

A better tax system for business by encouraging investment and innovation

Business investment and innovation are crucial to lifting productivity, real wages,  jobs and overall living standards.

Australia has experienced two decades of slow productivity growth and the Government is delivering a significant productivity package to help turn this around, including $3.5 billion in new measures that lower taxes for businesses.

Tax settings are crucial to productivity – influencing business investment, risk taking, innovation and dynamism.

That’s why we’re introducing significant tax reforms that help businesses invest, innovate and grow, and support small businesses.

We are: 

• Permanently introducing two-year loss carry back for all companies up to $1 billion in turnover from 2026-27, to support resilience, investment and sensible risk taking by Australian firms. This will benefit up to 85,000 businesses each year.
• Introducing loss refundability for start-ups from 2028-29, to help new businesses invest and grow in their first two years. Refundability will be capped at the amount of fringe benefits tax and PAYG withholding from employees’ wages. This will benefit up to 25,000 start-ups each year.
• Expanding tax incentives for venture capital from 2027-28, by increasing some asset caps not adjusted for over 20 years, to unlock more investment in venture capital by global and local investors – including super funds – supporting the next wave of innovative Australian businesses to start up and scale up.
• Better targeting and simplifying the Research and Development Tax Incentive from 2028-29, to support more high-impact innovation.
• Making the $20,000 small business instant asset write-off permanent, to support small businesses to invest and deliver around $890 million in cash flow support over the next five years.

These reforms will support a more dynamic and resilient economy by encouraging investment, sensible risk-taking and innovation through the economy.

A simpler and more sustainable tax system 

We are making the tax system simpler to reduce compliance costs for businesses and individuals by $540 million a year while also ensuring the system is set up for the long term.

The Government’s reform package includes substantial new measures to bring down compliance costs, and make trade and investment simpler and easier.

We are: 

• Delivering the $1,000 instant deduction for work-related expenses from 2026‑27, making tax time simpler for 6.2 million workers with an average tax saving of $205.
• Making the $20,000 small business instant asset write-off permanent to slash compliance costs for small businesses by around $32 million a year, saving them 366,000 hours on record keeping.
• Working with the ATO to expand access to dynamic monthly business tax payments from 1 July 2027, so more businesses can opt in to use tax software to make their tax instalments line up with actual business activity each month, saving them time and money.
• Abolishing 497 more nuisance tariffs from 1 July 2026 and consulting on abolishing another set of tariffs to cut costs for Australian businesses, strengthen competitiveness and enhance productivity. This means we have removed almost 1,000 tariffs in two years, streamlining $23 billion of trade and saving businesses $157 million a year in compliance costs.
• Transitioning to a permanent 25 per cent discount on fringe benefits tax for eligible electric cars over $75,000 from 1 April 2027 and for all eligible electric cars from 1 April 2029. This will ensure we continue providing targeted support for Australians switching to electric cars while also ensuring more sustainable long-term tax settings.

Tax reform for today, and for the long term

This is the most significant tax reform package for more than a quarter of a century and it continues the Albanese Labor Government’s record of responsible economic management.

The new revenue raised will be returned to workers and businesses in the near term and, together with our substantial expenditure savings, will improve budget sustainability over the medium term.

The Government will introduce tranches of legislation to implement these changes as soon as possible, with further consultation to settle the details for implementation where appropriate.

We’re taking further steps in this Budget to restore the great Australian dream of home ownership for more Australians, give more workers permanent cost of living relief and help businesses grow and invest.

Our reforms will make our tax system better, fairer and simpler and make our economy and our tax system work in the interests of more Australians.

This Budget is all about resilience and reform, which is why our tax relief for workers and businesses and our plans for a fairer housing market and fairer tax system are so important.

The Greens say Cohealth clinics need long term funding to stay open – not just the band-aids and crumbs offered by Labor today.

The Federal government today announced $1.5 million to keep Kensington, Fitzroy and Collingwood cohealth GP clinics open only for another 12 months – following huge community pressure on Labor and concerns that the issue would become a massive headache for Labor in a state election year.

But the funding only keeps the clinics open for 12 months – just past the state election – and there is still no long-term solution to ensure that community health GP clinics can stay open and sustainable into the future. Medicare rebates continue to be insufficient to cover the care of complex and vulnerable patients that community health often caters for.

Last October, cohealth announced they would have to close GP and counselling services at these sites by December 16, the the entire Collingwood site permanently in 2026, due to insufficient funding from both federal and state governments.

Since the announcement, the Greens at all levels of government joined with the community to run a huge campaign to pressure Labor to deliver funding to keep cohealth open. 

Hundreds of people attended community meetings in Richmond and Kensington, and the Greens built a community petition of almost 8,000 local signatures as well as brought questions and motions before the state and Federal Parliaments.

Labor has been on the back foot since then and today has offered a short-term bandaid, while continuing to ignore the long-term reform that the community health sector needs.

Leader of the Victorian Greens, Ellen Sandell: 

“It is only because of the huge pressure from the community and the Greens that Labor is finally providing this funding – but short-term funding is only a band-aid. Community health needs long-term funding security to ensure our GP clinics can stay open and continue to provide free healthcare to those who need it most in our community”.

Victorian Greens Member for Richmond, Gabrielle de Vietri:

“Labor needs to stop breadcrumbing our community health centres and come to the table with long term sustainable funding and infrastructure money for Collingwood. These short term funding injections show that Labor doesn’t understand our community. Doctors, staff and patients deserve certainty and security that our community health centres will remain open beyond the next election.” 

The Australian Government welcomes the findings of the 2025 independent review of the Woomera Prohibited Area coexistence framework. 

The Government accepts all 19 of the review’s recommendations. 17 are accepted in full, while  two – which require additional steps for implementation – have been accepted in-principle. 

Led by Ms Rebecca Skinner PSM, the review undertook comprehensive consultation with a wide range of stakeholders, including pastoralists, the resource, tourism and research sectors, and First Nations groups. The review also engaged closely with the South Australian Government as the Commonwealth’s partner in coexistence. 

The review found that while the coexistence framework operated effectively since its establishment in 2014, it requires modernisation to reflect Australia’s contemporary strategic environment.

The recommendations will inform the remaking of the Woomera Prohibited Area Rule 2014, which underpins the arrangements that seek to balance the interests of all Defence, economic and cultural users, as well as reforms to modernise the coexistence framework. In return for giving Defence the additional flexibility it needs for activities to meet its growing operational capability requirements and to protect Australia, the Government has committed Defence to minimising impacts and providing greater certainty to non-Defence users. Defence will work closely with all stakeholders, including First Nations groups, as it implements the reforms. 

The Government thanks Ms Skinner for conducting the review and Woomera Prohibited Area stakeholders for their constructive engagement throughout the process and their ongoing commitment to successful coexistence. 

The final report and government response is available at: Review of the Woomera Prohibited Area Coexistence Framework

Deputy Prime Minister, the Hon Richard Marles MP:

“The review reaffirmed the continuing utility of the co-existence framework but found it requires modernisation to respond to our challenging strategic circumstances. Woomera will be increasingly important to enable Defence to accelerate the development, testing and acquisition of advanced and emerging capabilities.

“At the same time, the Government is committed to working closely with all coexistence stakeholders —including pastoralists, the resource sector and First Nations groups — to improve access and certainty for other users, and to implement these reforms now and into the future.”