The 2026 Australian federal budget, delivered by Treasurer Jim Chalmers, brings a mix of benefits and drawbacks for different groups. Taxpayers and first home buyers emerge as winners, while rich families, overseas travelers, and some migrants face increased costs.
Budget Winners
Taxpayers
The Working Australians Tax Offset will provide a permanent offset of up to $250 from the 2027-28 income year, benefiting over 12.5 million Australians. This complements the reduced 15% tax rate for income between $18,201 and $45,000 from July 2026, which will further drop to 14% from July 2027. Additionally, from 2026-27, taxpayers can claim an instant tax deduction of $1,000 without keeping receipts.
Public Servants
The average staffing level for 2026-27 is set at 217,256, up from 215,941, marking the largest bureaucracy in history. However, the Australian Competition and Consumer Commission loses 300 positions, and the National Disability Insurance Agency reduces by 700 roles.
Commercial TV Networks
Nine, Seven, Ten, and commercial radio networks are exempt from the commercial broadcasting tax for two years until June 2028, costing taxpayers $111.3 million over five years. Australian Associated Press receives $15 million to support journalism.
Scientists
The National Measurement Institute gets $273 million for IT and maintenance. The Australian Space Agency receives $21.7 million, and the CSIRO gets a $387.4 million boost.
Illegal Tobacco Purveyors
Despite $20 million allocated to combat illicit tobacco, the government predicts a $1.2 billion (25%) drop in tobacco excise revenue due to growth in illegal tobacco sales.
First Home Buyers
Capital gains tax and negative gearing reforms are expected to force investors out, helping 75,000 new homebuyers. However, rents may rise by almost $2 per week, and the Help to Buy scheme is underperforming, saving the government $685 million.
Budget Losers
Endangered Species
Only $99.6 million over two years is allocated for conservation and planning, far below expert recommendations for protecting endangered species and habitats.
Rich Families
From 2028, discretionary trusts will face a minimum 30% tax, adding $4.5 billion annually to government revenue, targeting the wealthiest 10% who hold most private trust wealth.
Dodgy E-Bike Sellers
The government allocates $6.6 million to strengthen product safety, including recalls, online marketplace reforms, and national standards for e-bikes.
Overseas Travelers
The passenger movement charge, included in air and boat tickets, rises from $70 to $80 from 1 January 2027, generating an extra $210 million per year.
Hopeful Migrants
New measures cut migration numbers, making permanent visas harder to obtain. Changes to the points system disadvantage older, lower-skilled, and less educated migrants. Working holiday visas will more often be allocated by ballot.
People Out of Work
Unemployment is expected to rise to 4.5%, with 50,000 more Australians job-seeking. JobSeeker remains at $58 per day, and the $250 tax rebate only applies to workers, excluding the unemployed.
Freight Rail Enthusiasts
The inland rail project between Melbourne and Brisbane is truncated to Parkes, New South Wales, saving $4.4 billion. However, passenger rail gains $3.8 billion for Melbourne's Suburban Rail Loop, $660 million for Newcastle to Sydney high-speed rail, and $50 million for the Sydney-Canberra rail corridor.
