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Budget 2026-27: at a glance
On Tuesday 12 May 2026 the Treasurer Jim Chalmers handed down the 2026-27 Federal Budget, framing some of the more significant announcements as part of a broader plan to help young Australians access the property market.
While acknowledging that the key to housing affordability is supply, the Government clearly sees changes to negative gearing and the capital gains tax (CGT) discount as being important pieces in the housing affordability puzzle.
The Government has called this its most ambitious budget and if the proposed measures are implemented, the impact will be felt directly by a wide cross-section of Australian society, including individual taxpayers, investors, businesses, employers and those suffering from a disability.
The year’s budget has been released against a backdrop of significant economic challenges, including global fuel price shocks, persistent inflation, rising interest rates and growing concerns around housing affordability. These themes are reflected in the measures that have been announced by the Treasurer.
While the Government has announced some significant changes to the tax system, the superannuation system looks to have been left alone this year.
Key initiatives include:
Housing
- Changes to the tax system to reduce existing concessions for property investors.
- Extending the temporary ban on foreign purchases of established dwellings until 30 June 2029.
- An investment of $2 billion to help local governments and state utilities build infrastructure to support new housing.
Health
- Medicare Urgent Care Clinics will receive additional funding to ease the pressure on GPs and hospitals.
- Funds are allocated to list new medicines on the Pharmaceutical Benefits Scheme, including treatments for cystic fibrosis, kidney disease and various cancers.
- An additional $25 billion in funding for public hospitals.
- Reforms to the NDIS are expected to save $37.8 billion over the next four years. The scheme will be more focused on those with permanent and severe disabilities.
- Private health insurance subsidies for Australians over 65 are being cut, with savings being used to fund aged care and dementia care units.
Defence
- The defence budget will be increased by $53 billion over the next ten years.
Fuel
- A $14.8 billion package will be used to help Australia strengthen fuel supply.
- A reduction in the fuel excise and heavy vehicle road user charge will continue to apply for three months from 1 April 2026.
Important: Unless otherwise noted, the measures discussed below are only announcements at this stage. There is no guarantee that they will be implemented as per the Government’s announcements (or at all). We will keep you up to date with key developments as things progress.
Our team
The Harris Planning team are available to help you understand how the budget and any enacted measures might impact on you. We can assist you to capitalise on any opportunities or minimise your risk.
As always, the detail is important so please let us know if we can assist.
