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Jim Chalmers has handed down his fifth budget, and first since the 2025 federal election.
“This is the most important and ambitious budget in decades,” the Treasurer said. “Important because the world is throwing a lot at us – and this budget is about helping Australia deal with these challenges. “And ambitious because we have so much going for us – and this budget is about Australia seizing those opportunities.
” Winners First homebuyers: The government has forecast that reforms to negative gearing and capital gains tax concessions will help 75,000 people into the housing market over the next decade. Taxpayers: Legislated tax cuts for every Australian worker will continue rolling out on July 1, 2026 and July 1, 2027. The $1000 instant deduction will be available for 2026-27 tax returns, and the $250 Working Australians Tax Offset for more than 13 million workers will be introduced in 2027-28.
Small business: The government will make the $20,000 instant asset write-off permanent from July for businesses with aggregated annual turnover of less than $10 million. PBS customers: The government will spend $5.9 billion to list new medicines on the Pharmaceutical Benefits Scheme, including treatments for cystic fibrosis, chronic kidney disease, various cancers and more. Great Barrier Reef: More than $90 million will be spent over the next two years for work protecting and restoring the reef.
Losers Foreign property buyers: The government will extend its temporary ban on foreign purchases of established homes until July 2029. Shoppers, drivers: It appears there will be little reprieve at the checkout or petrol bowser. The Iran war continues to add to “inflationary pressures and supply constraints”. Inflation is forecast to be five per cent through the year to the June quarter.
Future property investors: Changes to negative gearing and the capital gains tax will begin from mid-2027. Illegal tobacco traders: More than $36 million will be spent on action to crack down on the illicit tobacco and nicotine trade. NDIS fraudsters: The government is strengthening the National Disability Insurance Agency’s investigative and enforcement capabilities and will introduce new controls to protect participants from exploitation.
Electric vehicle buyers: Sales of EVs are on the rise but the fringe benefits tax exemption for them will be made less generous over time. Outsourced talent: The government has put external consultants, contractors and labour hire on notice, with $2.7 billion in savings forecast for the 2029–30 budget. Other non‑wage expenses like travel, hospitality and property also factor into those savings.
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