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Taxation

$250 for workers

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  • Tax offset: The government will spend $6.4 billion over the five years from now to allow working Australians to offset their tax by $250. The offset will be ongoing from the next financial year, beginning July 1 2027

  • Trusts: The government will introduce a 30% tax on trusts from July 1 2028, which is forecast to raise $4.4 billion, but not until the 2029-30 financial year.

Housing

CGT discount and negative gearing changes

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  • Negative gearing: Negative gearing will be limited to new residential properties from July 1 2027. Currently negatively geared properties will be grandfathered

  • Capital gains tax: The capital gains tax discount will be replaced with an inflation-adjusted indexation measure from July 1 next year

  • Utility infrastructure: There’s $2 billion over four years from July for local councils, power providers and water utility businesses for infrastructure needed for housing, such as roads, water, power and sewerage.

Healthcare

Hospitals and vaccines get a boost

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  • Hospitals: The states and territories will receive $220 billion over five years from July for public hospitals under the National Health Reform Agreement, including $221 million in additional funding for the Australian Capital Territory, the Northern Territory and Tasmania

  • Vaccines: Health spending gets a $590 million boost over the next five years from now to improve access to medicines, including the National Immunisation Program and RSV vaccines

  • Private health insurance: The government will save $3 billion over four years from July by scrapping the private health insurance subsidy for people over 65 from April 1 2027

  • Urgent care: Funding for Medicare Urgent Care Clinics will be made permanent at a cost of $1.8 billion over five years from now.

NDIS

Fewer participants and less money

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  • Fewer people: Tightened eligibility requirements for the NDIS will result in 160,000 fewer people on the scheme by the end of the decade, with the government projecting this will save $37.8 billion over four years

  • Support and protections: The government will spend $1.7 billion over five years from now on the NDIS, including supporting participants, fraud detection and registering high-risk providers

  • Autism: The government will also contribute $2 billion over five years from July to help deliver the Thriving Kids program to support kids aged eight or under with autism and developmental delay with low to moderate needs.

Fuel

Increased security and reserves

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  • Fuel security: The budget includes $11.9 billion over five years from now to fund the National Fuel Security Plan, including setting up a government-owned fuel security reserve to increase long-term diesel and aviation fuel supply and storage

  • Increased reserves: This would also increase the Minimum Stockholding Obligation, to extend Australia’s critical fuel reserves to 50 days

  • Freight and supply: $1 billion of the funding will go to the National Reconstruction Fund to support crucial freight and fuel supply chains.

Infrastructure

Melbourne trains and continued funding for roads

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  • Suburban rail loop: Melbourne’s Suburban Rail Loop will receive an additional $3.8 billion over four years from July

  • Rail freight: There’s $1.8 billion over six years from July for the Australian Rail Track Corporation to invest in the rail freight network

  • Roads and highways: The budget also has $1.7 billion for a swathe of other infrastructure projects across the country, such as the Bruce Highway in Queensland. But this is forecast spending over nine years, meaning it’s spread well beyond the next election

  • Suburban and regional projects: Community infrastructure projects across the country will get $841 million over four years from July

  • Shorter train line: Cuts to the Melbourne to Brisbane Inland Rail project mean it will now end in Parkes, New South Wales: about half way to its original destination.

Small business

Easier tax and more write-offs

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  • Asset write-off: The government has extended the $20,000 instant asset write-off for small businesses with an annual turnover of up to $1 million, at a cost of $815 million

  • Help for start-ups: There’s about $2 billion in tax relief to businesses and start-ups by reforming the treatment of losses.

Defence

More money and nuclear subs

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  • Expenditure: Defence expenditure will increase to $53 billion over the decade, including an extra $14 billion over four years, to deliver the National Defence Strategy

  • Papua New Guinea: There’s $600 million over four years from July this year for Australia’s defence treaty with Papua New Guinea

  • Nuclear submarines: Australia’s nuclear submarine program will receive $863 million over four years from July.

Government

Services and digitisation

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  • Services Australia: Services Australia will get $2.2 billion over five years from now to help manage claims

  • Digital ID: There’s $654 million over four years from July 1 to improve and further secure the Digital ID program.

First Nations

More for employment programs and Closing The Gap

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  • Closing The Gap: There’s $793 million over five years from now for policies under the National Agreement on Closing the Gap. These include remote employment programs, health infrastructure and the establishment of the National Commission for Aboriginal and Torres Strait Islander Children and Young People.

Aged care

More beds and home care

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  • Home care: There’s $1.4 billion over four years from July for home care programs, including fully funding personal care for all recipients

  • Regulation: The aged care system will receive $565 million over four years from July to improve quality and regulation

  • Providers: There’s also $606 million over four years from July for aged care providers to boost the number of beds available.

Transport

Electric vehicle tax discount removed

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  • Electric vehicles: A reduction in tax discounts on electric vehicles, saving the budget $1.9 billion over the next five years.

Antisemitism

Help for Bondi victims and Royal Commission

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  • Victims of Bondi: There’s $219 million over four years from now to support people affected by the Bondi terror attack

  • Combating antisemitism: A further $207 million is set aside for combating antisemitism more broadly, including responding to the special envoy’s plan

  • Royal Commission: The budget allocates $131 million to fund the Royal Commission on Antisemitism and Social Cohesion.

Prior commitments

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  • Tax deductions: Taxpayers will be able to claim up to $1,000 in deductions for work-related expenses in their 26/27 tax return (next year) without providing receipts. This 2025 election commitment will cost the government around $2.6 billion over four years from this financial year

  • Environment protection: The government has committed $250 million over the next two years to create the National Environmental Protection Agency, which it legislated late last year

  • Pharmaceuticals: There’s $5.9 billion over five years set aside for new medicines to be added to the Pharmaceutical Benefits Scheme (PBS).