Federal Budget 2026: Chalmers Drops the “Most Ambitious Budget in Decades", but it gets worse for Australians.
Treasurer Jim Chalmers handed down the 2026-27 Federal Budget tonight, calling it a “reset for intergenerational fairness".
The government says first-home buyers and working Aussies are the 'big winners'.
In reality, the measures feel like crumbs while the cost-of-living and housing crisis continues to bite hard especially with high immigration still running hot.
The big losses are for property investors, consultants, and anyone hoping negative gearing would stay untouched (Negative gearing will roll out no matter what) but for the major tax overhaul, housing push, defence boost, and NDIS tightening.
Main Highlighter:
Tax Reform – The Big One
- Negative gearing restricted to new builds only from 1 July 2027 (existing properties still protected for now).
- Capital Gains Tax discount reformed: moving away from the flat 50% to an inflation-based model, with a minimum 30% tax on gains.
- A new $250 Working Australians Tax Offset from 2027–28 for over 13 million workers.
- $1000 tax deduction and $250 tax cut aimed at young Aussies trying to enter the property market.
Housing & Cost of Living
- Billions in housing infrastructure, targeting tens of thousands of new homes (including $3.1 billion for 100,000 new homes and regional support).
- Continued energy rebates and cost-of-living relief.
- $500 million to fast-track approvals for housing, energy, and critical minerals projects.
Defence & Security
- Extra $53 billion over the next decade, aiming for 3% of GDP by 2033.
- Heavy focus on AUKUS, drones, and fuel security.
- New government-owned emergency fuel reserve and stockpile expansion.
NDIS & Public Service
- Major effort to slow NDIS growth, targeting about ~160,000 fewer participants by 2030 through “Thriving Kids” and other measures.
- Over $2 billion in savings from public service, consultants, and outsourcing cuts.
No matter how they spin the “ambitious reset", this Budget once again shows that Labor and Jim Chalmers’ economic approach is likely to make things worse for everyday Australians.
The investors are feeling the heat; young buyers get minor relief that barely moves the needle, and the big structural issues (housing supply, immigration-driven demand, and cost of living) remain largely unaddressed.
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