Category: MIL-OSI

Source: Prime Minister of Australia

his is a responsible Budget that is all about resilience and reform.

It’s all about getting Australians through the global oil shock and building an economy that works for more people.  

We’re delivering more cost-of-living help and building a more productive economy, a better tax system, a fairer housing market and a stronger and more sustainable budget.

The conflict in the Middle East is weighing heavily on our economy and compounding cost-of-living pressures facing Australians.

At the same time, we face longstanding challenges when it comes to productivity, intergenerational equity and access to housing.

That’s why we’re delivering new tax relief for workers, helping more Australians into home ownership, investing in Medicare and making it easier to build, do business and invest.

We’re building a stronger budget with lower deficits and less debt, to help take pressure off inflation and build our fiscal buffers at a time of global uncertainty.

This Budget helps Australians today and lifts living standards into the future by: 

• Responding to the global oil shock
• Taking pressure off Australians
• Making our economy more productive
• Delivering tax reform for workers, businesses and future generations
• Making sensible and responsible savings

Responding to the global oil shock

Our fuel resilience package in the Budget will deliver more fuel for Australians, and more fuel security in our economy. 

• Securing Australia’s near-term fuel and fertiliser security through Export Finance Australia’s $7.5 billion Fuel and Fertiliser Security Facility.
• Strengthening longer term fuel security with our $3.2 billion Australian Fuel Security Reserve.
• Boosting our energy sovereignty by making more clean fuels here, promoting electrification, and implementing a 20 per cent gas reservation.
• Overall, the $14.8 billion Strengthening Australia’s Fuel Resilience package helps Australians respond to market disruptions and invest in future resilience.

Taking pressure off Australians

People are under pressure, we recognise that and we’re doing something about it with more cost-of-living relief in the Budget including a new tax cut for Australian workers. 

• Delivering new and permanent income tax cuts for every working Australian taxpayer through the $250 Working Australians Tax Offset, along with the $1,000 Instant Tax Deduction.
• More than halving the fuel excise and reducing the heavy vehicle road user charge to zero for three months.
• Rolling out legislated tax cuts for every Australian taxpayer this year and next year.
• Increasing the Medicare levy low-income thresholds.
• Boosting housing supply and helping more Australians into home ownership.
• Making health care more affordable and accessible, including by making Medicare Urgent Care Clinics a permanent feature of Australia’s health system.
• Backing higher wages for low-paid workers.

Making our economy more productive

Making our economy more productive will boost wages and living standards and that’s why it’s a central focus of the Budget. 

• Rolling out a comprehensive productivity package that will reduce regulatory burden by $10.2 billion each year, boost long‑run GDP by around $13 billion through work underway with states and territories, and lift young firms’ investment in R&D by $400 million per year.
• These reforms make it easier to do business, easier to build and easier to invest through meaningful reforms to approvals processes, establishing a single national market, promoting the uptake of AI and implementing landmark reforms to energy markets. The Government is also making significant investments in science and innovation.

Delivering tax reform for workers, business and future generations

Our tax package is about tax relief and tax reform to make our economy work in the interests of workers, businesses and future generations. 

• Reforming negative gearing, capital gains and discretionary trust tax arrangements to improve the fairness of the tax system, support home ownership and fund new income tax cuts for every working Australian taxpayer.
• Delivering over $3.5 billion of new measures that lower taxes for businesses and start-ups including loss refundability, support for venture capital and a permanent $20,000 instant asset write-off for small business.

Sensible and responsible savings

Responsible economic management is a defining feature of this government, and this Budget is our most responsible yet.

We’re delivering $63.8 billion of savings and reprioritisations which is helping us to pay down Liberal debt and fund the services and supports that Australians rely on.

Our substantial savings and restraint in this Budget mean that: 

• The budget position is $44.9 billion stronger than the mid-year update, and $264 billion better than what we inherited.
• Gross debt is down a further $18 billion in 2026-27 than forecast in the mid-year update and is now $173 billion better than we inherited.
• We’re returning every single dollar of revenue upgrades to the bottom line in consecutive updates for the first time on record.
• Net policy decisions are positive for the second consecutive update, with net decisions accounting for provisions totalling $26.1 billion over the forward estimates.

This is an ambitious Budget that provides immediate support to millions of Australians, delivers urgent economic reforms and acts on our intergenerational responsibilities.

It’s a Budget that builds a stronger, more resilient economy that works for more people.

Source: Prime Minister of Australia

he Albanese Labor Government is delivering a new round of tax cuts, helping more Australians realise the dream of home ownership and supporting investment and innovation through the most significant tax reform package in more than a quarter of a century.

This is about tax relief and tax reform to make our economy work in the interests of more Australians, businesses and future generations.

This tax package is pro-aspiration, pro-worker and pro-investment.

It’s about helping workers, first home buyers and businesses so more Australians can earn more, keep more of what they earn, get into the housing market and get ahead.

We are reducing the tax burden for over 13 million workers, supporting 75,000 more homeowners into the housing market, delivering over $3.5 billion in new measures that lower taxes for businesses and reducing compliance costs by $540 million a year.

We’re doing this through a tax reform package with three parts: 

• A fairer tax system for workers, first home buyers and future generations
• A better tax system for business by encouraging investment and innovation
• A simpler and more sustainable tax system

Our changes will build a better, fairer, simpler tax system for all Australians.

A fairer tax system for workers, first home buyers and future generations 

This is all about backing the Australian ambition of owning your own home.

Right now, it’s too hard for too many Australians to get into the housing market and get ahead.

That’s why we’re providing tax relief to workers and delivering reforms to give more Australians the opportunity to own their own home by making our tax system fairer.

These changes build on our existing housing reforms to help level the playing field for first home buyers, help preserve the gains investors have made and incentivise productive investment in areas like new housing supply.

They will bring tax outcomes for trusts closer to the rates that apply to the vast majority of Australian workers, help pay down debt and help fund tax relief for every Australian worker and the services they rely on.

We are: 

• Delivering a new Working Australians Tax Offset (WATO) to provide a permanent annual $250 tax offset to all eligible Australian workers. This begins to apply for income earned from work for the second half of 2027 and will automatically reduce workers’ tax liability for the 2027-28 income year. The Government is also introducing a $1,000 instant tax deduction to allow workers to deduct up to a thousand dollars off their taxable income without keeping receipts. These measures build on the legislated tax cuts starting in July 2026 and July 2027.
• Limiting negative gearing for residential property to new builds from 2027-28. Arrangements will remain unchanged for all existing investments made before 7:30pm AEST on 12 May 2026.
• Replacing the 50 per cent capital gains tax (CGT) discount with inflation-adjusted indexation from 1 July 2027 to restore the taxation of real gains, with a minimum tax rate of 30 per cent on realised gains. This will apply to all assets except new builds, where both new and old arrangements will be available to choose from. It will be prospective, with gains accrued on existing investments prior to the start date to retain the 50 per cent discount. 
• Applying a minimum 30 per cent tax rate on discretionary trusts from 2028-29, to create a more equal and sustainable treatment between workers and families who earn a living from wages and people with income from assets held in trusts.

Our new Working Australians Tax Offset (WATO) will benefit 13.3 million Australian workers and lift the effective tax-free threshold for eligible workers by almost $1,800 – the largest permanent increase to the effective tax-free threshold since 2012-13 – helping to support workforce participation.  

Changes to the tax system will help around 75,000 homeowners into the market over the next decade, equivalent to reversing around a decade of declines in Australia’s home ownership rate, and when combined with our other housing reforms in the Budget, will support another 30,000 new homes over 10 years.  

These changes are prospective, respect past investment decisions, won’t change tax arrangements for the family home or superannuation and support investment in new housing supply.

They sensibly manage housing market and broader economic impacts including through fair and reasonable transitional arrangements.   

Our changes to the taxation of discretionary trusts will make the tax system fairer and more sustainable by aligning tax paid by trusts more closely to the income tax rates paid by the vast majority of Australians.

Together, these changes are all about making our tax system better and fairer for all Australians.

A new $250 Working Australians Tax Offset 

The Government will deliver a new round of tax cuts for 13.3 million working Australian taxpayers through a new $250 Working Australians Tax Offset (WATO).

The new offset will provide responsible cost of living relief and help make the tax system fairer for workers.

The offset will be available for all workers for tax years starting on or after 1 July 2027, paid automatically in workers’ tax returns at the end of the year.

The new offset will help Australian workers to keep more of what they earn, incentivise participation for lower-income workers and help with the cost of living.

This builds on the twin tax cuts legislated by the Albanese Government that are still to come in 2026 and 2027 and our $1,000 instant tax deduction.

The combined benefit to an Australian worker on average earnings of our three tax cuts, new tax offset and instant tax deduction will be up to $2,816 from 2027-28.

Reforming negative gearing to support new housing supply

We are limiting negative gearing for residential property from 2027-28 so it can only be used for new builds.

Over 80 per cent of new investor lending goes to existing homes, and we want more investment to back the construction of new supply.

Our negative gearing changes put homeowners first and will help more Australians get a foothold in the housing market.

Existing arrangements will remain unchanged for all properties purchased before 7:30pm AEST tonight, 12 May 2026, until they are sold.

This means all Australians who currently negatively gear or own an investment property will not see any change to these arrangements. They will still be able to deduct rental losses on these properties against other taxable income, like a salary, to reduce their overall tax liability.

For people who want to invest in existing property after the start date, they will still be able to deduct losses against residential property income, like rent or capital gains, but not broader income like a salary.

Investors will be able to carry forward losses to offset residential property income in future years. People who invest in eligible new builds after the start date will still be able to deduct rental losses from those properties against other taxable income.

Improving tax arrangements for capital gains 

We’re fixing the tax treatment of capital gains so that it operates as originally intended, helping to ensure investment flows where it’s most productive. 

Returning to indexation will mean in future, only real capital gains are subject to tax, supporting investment in assets like medium-density housing.

We’ll also introduce a minimum tax of 30 per cent to capital gains accrued from 1 July 2027, after indexation has been applied.

These changes will apply to all assets except new builds, where both new and old arrangements will be available to be chosen from 1 July 2027.

Further consultation will be undertaken with stakeholders to settle the details for implementation, including the treatment of early-stage and start-up businesses given the unique features of the tech and start-up sector.

These changes apply prospectively from the start date. The 50 per cent discount will still apply to gains accrued on eligible existing investments prior to the start date, regardless of when the gain is realised.

Most capital gains are made by people with high lifetime income, but because gains are taxed on realisation, there’s flexibility to sell assets when it’s most tax advantageous.

About a third of all net capital gains income is realised by people who are in the top one per cent of earners during their working life, and more than half of net capital gains income is earned by those in the top 10 per cent.

Introducing a minimum 30 per cent rate will ensure everyone pays a fair share when they make a capital gain. Income support recipients, including pensioners, will be exempt from the minimum rate.

A minimum tax rate on capital gains will reduce the incentive to hold onto an asset to realise a gain when it’s most tax advantageous and ensure a fair amount of tax is paid on capital gains, in line with lifetime incomes.

Overall, these reforms will mean some investors with lower gains relative to inflation pay less tax, while some with large gains well above inflation will pay more, and the tax treatment of capital gains will be more consistent regardless of when assets are sold.

Since the Howard Government introduced the 50 per cent CGT discount in 1999, house prices have increased by more than 400 per cent – almost twice as fast as average full-time earnings – and the home ownership rate among 25-34 year olds declined by 7 percentage points from 2001 to 2021.

This reflects a broad range of forces. Supply has not kept pace with rising demand, but tax settings have also played a role.

Since the discount was introduced, the share of Australians owning shares outside of super has also declined almost 20 percentage points.

These reforms are also expected to improve the efficiency of investment decisions, as they are more likely to be made for economic reasons rather than tax outcomes.

Around 83 per cent of the benefit of the current CGT discount goes to those in the top 10 per cent of taxpayers by income.

These changes will help more Australians into homes and make our tax system fairer and more sustainable.

Fairer tax arrangements for discretionary trusts 

The introduction of a 30 per cent minimum rate will mean a fairer and more sustainable rate of tax paid on discretionary trust income.

Currently, discretionary trusts allow some Australians, often high wealth individuals and families, to plan their tax affairs in ways that aren’t available to most people.

In 2022–23, on average, families with discretionary trusts faced an average tax rate around 4 percentage points lower compared with families on similar incomes that don’t use trusts.

There are legitimate reasons to use trusts, such as succession planning and asset protection, but the current settings are becoming unsustainable with the number of discretionary trusts more than doubling over the past 20 years.

These reforms won’t change or limit the use of trusts for legitimate reasons, but will more closely align the tax rates for trusts with the rates paid by workers and families who earn a living from wages.

This will help fund important reforms like the latest round of income tax cuts and mean ordinary workers carry less of the burden in the tax system.  

The minimum tax won’t apply to other types of trusts that don’t offer the same flexibility like fixed and widely held trusts, charitable and special disability trusts, or complying superannuation funds. It also won’t apply to deceased estates, primary production income, certain income relating to vulnerable minors, and income from assets of discretionary testamentary trusts existing at announcement.

We will provide expanded rollover relief for three tax years starting on 1 July 2027 so that businesses and individuals using a trust can restructure their affairs ahead of the start date if they want to.

The overwhelming majority of Australians don’t receive income from a trust, and they shouldn’t be disadvantaged because of it.

Over 90 per cent of private trust wealth is held by the wealthiest 10 per cent of households.

These reforms will make the tax system fairer, more sustainable and help fund tax cuts as well as the essential services Australians rely on.

A better tax system for business by encouraging investment and innovation

Business investment and innovation are crucial to lifting productivity, real wages,  jobs and overall living standards.

Australia has experienced two decades of slow productivity growth and the Government is delivering a significant productivity package to help turn this around, including $3.5 billion in new measures that lower taxes for businesses.

Tax settings are crucial to productivity – influencing business investment, risk taking, innovation and dynamism.

That’s why we’re introducing significant tax reforms that help businesses invest, innovate and grow, and support small businesses.

We are: 

• Permanently introducing two-year loss carry back for all companies up to $1 billion in turnover from 2026-27, to support resilience, investment and sensible risk taking by Australian firms. This will benefit up to 85,000 businesses each year.
• Introducing loss refundability for start-ups from 2028-29, to help new businesses invest and grow in their first two years. Refundability will be capped at the amount of fringe benefits tax and PAYG withholding from employees’ wages. This will benefit up to 25,000 start-ups each year.
• Expanding tax incentives for venture capital from 2027-28, by increasing some asset caps not adjusted for over 20 years, to unlock more investment in venture capital by global and local investors – including super funds – supporting the next wave of innovative Australian businesses to start up and scale up.
• Better targeting and simplifying the Research and Development Tax Incentive from 2028-29, to support more high-impact innovation.
• Making the $20,000 small business instant asset write-off permanent, to support small businesses to invest and deliver around $890 million in cash flow support over the next five years.

These reforms will support a more dynamic and resilient economy by encouraging investment, sensible risk-taking and innovation through the economy.

A simpler and more sustainable tax system 

We are making the tax system simpler to reduce compliance costs for businesses and individuals by $540 million a year while also ensuring the system is set up for the long term.

The Government’s reform package includes substantial new measures to bring down compliance costs, and make trade and investment simpler and easier.

We are: 

• Delivering the $1,000 instant deduction for work-related expenses from 2026‑27, making tax time simpler for 6.2 million workers with an average tax saving of $205.
• Making the $20,000 small business instant asset write-off permanent to slash compliance costs for small businesses by around $32 million a year, saving them 366,000 hours on record keeping.
• Working with the ATO to expand access to dynamic monthly business tax payments from 1 July 2027, so more businesses can opt in to use tax software to make their tax instalments line up with actual business activity each month, saving them time and money.
• Abolishing 497 more nuisance tariffs from 1 July 2026 and consulting on abolishing another set of tariffs to cut costs for Australian businesses, strengthen competitiveness and enhance productivity. This means we have removed almost 1,000 tariffs in two years, streamlining $23 billion of trade and saving businesses $157 million a year in compliance costs.
• Transitioning to a permanent 25 per cent discount on fringe benefits tax for eligible electric cars over $75,000 from 1 April 2027 and for all eligible electric cars from 1 April 2029. This will ensure we continue providing targeted support for Australians switching to electric cars while also ensuring more sustainable long-term tax settings.

Tax reform for today, and for the long term

This is the most significant tax reform package for more than a quarter of a century and it continues the Albanese Labor Government’s record of responsible economic management.

The new revenue raised will be returned to workers and businesses in the near term and, together with our substantial expenditure savings, will improve budget sustainability over the medium term.

The Government will introduce tranches of legislation to implement these changes as soon as possible, with further consultation to settle the details for implementation where appropriate.

We’re taking further steps in this Budget to restore the great Australian dream of home ownership for more Australians, give more workers permanent cost of living relief and help businesses grow and invest.

Our reforms will make our tax system better, fairer and simpler and make our economy and our tax system work in the interests of more Australians.

This Budget is all about resilience and reform, which is why our tax relief for workers and businesses and our plans for a fairer housing market and fairer tax system are so important.

Source: Prime Minister of Australia

he Albanese Labor Government will deliver a major fuel security and price relief package in the Budget, investing $14.8 billion to immediately secure more fuel, strengthen Australia’s supply chains and build long-term resilience to future fuel shocks.

The Strengthening Australia’s Fuel Resilience package will deliver more fuel for Australian motorists, and more fuel security in Australia’s economy.

The package focuses on how to help Australians now, and how to set Australia up better for the future so we are prepared for future shocks.

The conflict in the Middle East is weighing heavily on our economy and compounding the cost of living for families and businesses.

We’ve acted to shield Australians from the worst of its impacts, by delivering relief for motorists and acting on fuel supply, affordability and security in this Budget.

Boosting Australia’s fuel security

• Securing more fuel internationally through the $7.5 billion Fuel and Fertiliser Security Facility, in addition to the around one billion extra litres of fuel secured for the period from March to June through temporarily relaxing the Minimum Stockholding Obligation and adjusting fuel standards
• Building long term fuel resilience through the $3.2 billion Australian Fuel Security Reserve and increasing the Minimum Stockholding Obligation (MSO), to increase Australia’s reserves of diesel and jet fuel to 50 days
• Strengthening the Fuel Security Services Payment to ensure the future of Australia’s last two remaining oil refineries, and providing $10 million in 2026-27 to develop feasibility studies to expand our domestic refining capacity
• $54.7 million over five years from 2025-26 to manage Australia’s Fuel Security Framework
• $9.2 million over two years from 2025-26 to deliver a nationally coordinated approach to managing disruptions to fuel supply chains through the Fuel Supply Taskforce

Strengthening supply chains and relieving pressure on fuel users 

• $2.9 billion to more than halve the fuel excise and slash the heavy vehicle road user charge to zero for three months to 30 June 2026, to help with the cost of living
• $1 billion in interest free loans through the National Reconstruction Fund’s Economic Resilience Program, to provide cashflow relief to manufacturing and logistics businesses in critical supply chains. This complements the $5 billion committed to the NRF’s Net Zero Fund since last Budget 
• $67.7 million over four years from 2026-27 to support greater enforcement of competition and consumer laws by the Australian Competition and Consumer Commission, weekly fuel price monitoring across capital cities and more than 190 regional locations penalties for major breaches doubled from $50 million to $100 million and civil penalties to be introduced for breaches of the Oil Code of Conduct
• Streamlining the ACCC’s powers to allow industry to better coordinate during exceptional circumstances
• $55 million in 2026-27 for a Transport Resilience and Capacity Kickstart pilot program to incentivise more freight to move via trains and cargo ships
• Accelerating heavy vehicle reforms through National Competition Policy to increase heavy vehicle transport productivity and support the uptake of zero emissions heavy vehicles
• An additional $8.2 million in 2026-27 to defer cost recovery arrangements for agricultural export services, with improvements to streamline biosecurity for fertiliser imports

Building resilience  

• Delivering the $1.1 billion Cleaner Fuels Program, to boost the production of low-emission fuels in Australia, and working with industry on a market measure to drive demand and to reduce our reliance on imported fuels
• $4 million for a green bunkering strategy to support uptake of low-carbon maritime fuels
• Ongoing support for electric vehicles through a permanent 25 per cent fringe benefits tax discount for eligible electric cars costing up to the fuel efficient luxury car tax threshold.  Electric cars costing up to $75,000 will continue to receive a full fringe benefits tax exemption, provided the arrangement commences before 1 April 2029
• Releasing $40 million over four years to accelerate the roll out of fast kerbside electric vehicle charging infrastructure, as committed as part of the Net Zero Plan announced in MYEFO 2025-26 
• $40.5 million in 2026-27 to accelerate the electrification of Australia Post’s delivery fleet

The conflict in the Middle East is having a substantial impact on Australian motorists and businesses and we’re taking decisive action to address this issue.

Our work to reduce the fuel excise and road user charge, secure more fuel, increase scrutiny of prices, and build resilience in our fuel sector is already making a meaningful difference but we recognise we need to do more and we are in this Budget.

It’s about taking the sting out of petrol prices and securing more fuel for Australians motorists immediately, and shoring up Australia’s resilience and fuel security for the future.

This Budget is all about resilience and reform, which is why our efforts on fuel affordability, supply and security is so important.

Source: Prime Minister of Australia

he Albanese Labor Government will deliver more cost-of-living relief in this Budget to take pressure off Australians, including a new permanent $250 tax offset for workers.

Together with our existing tax relief, this new round of tax cuts means the average Australian worker could receive a combined benefit of up to $2,816 from 2027-28.

We’re helping Australian workers earn more and keep more of what they earn and providing responsible cost-of-living relief where we can.

This Budget delivers more tax cuts for workers, helps with fuel costs, helps more Australians achieve home ownership provides more funding for public hospitals, delivers cheaper medicines and supports higher wages.

New tax cuts to help with the cost-of-living

• A new tax cut for every working Australian taxpayer through the $250 Working Australians Tax Offset. This will provide workers with a permanent tax offset of $250 each year from 2027-28.
• A $1,000 Instant Tax Deduction for workers from 2026-27, to help with the cost of living and make tax time simpler.
• Increasing the Medicare levy low-income thresholds to provide tax relief for over 1 million low-income individuals, families, seniors and pensioners, including 650,000 women. 
• This is on top of the tax cuts we are already rolling out for every Australian taxpayer, including from 1 July 2026 and again from 1 July 2027.

Helping families and businesses with fuel costs

• More than halving the fuel excise and reducing the heavy vehicle road user charge to zero for three months.
• Giving consumers a fair go at the bowser by doubling penalties for major breaches of competition and consumer laws to a maximum of $100 million and introducing civil penalties for breaches of the Oil Code of Conduct.
• ATO temporary relief for businesses unable to meet their tax obligations due to fuel supply issues.
• Ongoing support to encourage the uptake of affordable electric vehicles as we make tax discounts for EVs more sustainable by transitioning to a permanent 25 per cent FBT discount on eligible EVs over $75,000 from 1 April 2027 and for all eligible EVs from 1 April 2029.
• The Government has also empowered the Fair Work Commission to make orders to support more timely adjustments to fuel terms in road transport contracts.

More homes and a fair go for first home buyers

• Reforming the tax system to support 75,000 more homeowners into the housing market. 
• $2 billion over four years from 2026-27 for enabling infrastructure to support up to 65,000 more homes, taking our Homes for Australia plan to over $47 billion.
• An extension to the ban on foreign investors buying existing homes.
• Helping to secure social housing for more than 4,000 eligible young people at risk of homelessness, with $59.4 million over four years from 2026-27 for states and territories.

Making healthcare more affordable and accessible

• Making medicines cheaper by listing new and amended medicines on the Pharmaceutical Benefits Scheme including treatments for cystic fibrosis, chronic kidney disease and various cancers, with $5.9 billion provided over five years. 
• Securing the future of Medicare Urgent Care Clinics, with $1.8 billion over five years and ongoing funding. 
• Alongside these investments, an additional $25 billion over five years will strengthen public hospitals.

Backing higher wages

• Support for higher wages for low-paid workers by recommending an economically sustainable real wages increase for minimum wage and award-reliant workers to the Fair Work Commission.
• The Government has backed wage growth for low-paid workers in each of the last four Annual Wage Reviews. Across these reviews, the National Minimum Wage increased by over $9,120 per year.

Helping with the cost-of-living is our top priority as a government and it’s one of our highest priorities in the Budget.

We recognise that people are under pressure and we’re doing something about it with immediate help in response to the global oil shock, and more permanent support to ease the burden on workers and businesses. 

This Budget is about resilience and reform, and taking pressure off Australians is an important part of this agenda.

Source: Prime Minister of Australia

he Albanese Labor Government is taking decisive action in the Budget to boost housing supply, make our tax system fairer to help more Australians into homeownership and build on our work over the last four years to build more houses.  

This is about building more homes, helping more Australians realise the dream of homeownership and giving younger Australians a leg up in the housing market.  

We know it’s too hard for too many Australians to buy their own home and get ahead.

That’s why we’re investing in building more homes, making our tax system fairer and putting first home buyers ahead of foreign investors.

Reforms in this Budget to make the tax system fairer will help 75,000 homeowners into the housing market over the next decade.  

We’re coming at this housing challenge from every responsible angle, and this Budget builds on our ambitious housing agenda.

Our housing plan is pro-aspiration and it’s pro-investment.

Labor’s plan for a housing system that works for Australians 

• < Helping Australians buy a home:  
• < Building more homes, more quickly: 
• < Banning foreign investors from buying existing homes:
• < Making renting fairer and more affordable: 
• < Backing Australians doing it toughest: 

This is about one goal: More Australians in a home – whether they own or rent.

We’re backing this plan with serious investment, lifting our total housing commitment to a record of over $47 billion. 

This is the largest and most comprehensive housing plan Australia has seen in generations.

Helping Australians buy a home 

It’s too hard for too many Australians to buy their own home and get ahead.

That’s why we’re providing tax relief to workers and giving more Australians the opportunity to own their own home by making our tax system fairer.

We will limit negative gearing for residential property to new builds from 1 July 2027. Arrangements will remain unchanged for all existing investments made before 7:30pm AEST 12 May 2026.

We will replace the 50 per cent capital gains tax (CGT) discount with inflation-adjusted indexation from 1 July 2027, to restore the taxation of real gains, and introduce a minimum tax rate of 30 per cent on realised gains. This will apply to all assets except new homes, where both new and old arrangements will be available. It will be prospective, with gains accrued on existing investments prior to the start date to retain the 50 per cent discount. 

Our tax changes will help around 75,000 homeowners into the market over the next decade and are part of a package of housing reforms in this Budget that will boost housing supply. 

They will help level the playing field for first home buyers and build on the strong support we are already delivering through the expanded 5% Deposit Program and the introduction of Help to Buy. Together, these programs now mean that more than half of all first home buyers are entering home ownership with the support of the Albanese Government.

Building more homes, more quickly

Building more homes is the main game when it comes to addressing Australia’s housing challenge.

That’s why new builds are exempt from the tax changes, to steer investment toward increasing supply. This means investors purchasing new housing can continue to access negative gearing and can choose between the 50 per cent discount and the new indexation arrangements. 

More infrastructure funding

We are investing a further $2 billion in housing enabling infrastructure to address one of the key barriers holding back more housing supply.

This funding will establish a new Local Infrastructure Fund as part of the Housing Support Program, to unlock the enabling infrastructure needed to finish housing projects that otherwise wouldn’t go ahead due to a lack of enabling infrastructure including roads, water, power and sewerage. 

This funding will be provided to local governments and state utility providers, with $500 million reserved just for regional Australia.

The Local Infrastructure Fund will support up to 65,000 homes over 10 years. 

This $2 billion investment brings our total investment in housing enabling infrastructure to a record $6.3 billion since coming to government. 

And we have a further $5.9 billion available to states and territories as part of the 100,000 Homes for First Home Buyers program.

Faster approvals and less red tape

Access to the Local Infrastructure Fund will be linked to further state-based reforms to improve productivity in the housing sector – including faster and simpler approvals, making more land available and ready to build homes, and delivering a genuinely national construction code.

These reforms have the potential to support tens of thousands of additional homes and could reduce regulatory costs by up to $3 billion per year. 

We’re also making it easier to build by making all standards referenced in Australian legislation free, including mandatory construction standards, as part of our work to streamline the National Construction Code. 

Important regulations should not sit behind a paywall. This change will save builders and tradies up to $1,600 per year. 

Building on the momentum of the EPBC strike team set up last August, the Government will provide over $45 million to progress bilateral agreements with states and territories. This will cut red tape and duplication by combining federal and state assessments and approvals, ensuring proponents can benefit sooner from quicker, more efficient environmental approvals, while maintaining strong environmental safeguards. 

This is on top of an additional $250 million in this Budget to accelerate and streamline environmental approvals processes, unlocking investment in national priority areas including housing.

More tradies in construction

We’re investing $85.2 million to accelerate skills assessments for skilled migrants in trades industries and to better integrate occupation licensing with the assessment process. Once implemented, this could cut the time taken to enter the workforce by up to 6 months.

The investment will also provide a new pathway for migrant workers already onshore to have existing qualifications and practical trades experience recognised, helping to address workforce shortages. 

This builds on our work to train more tradies, through Free TAFE and the $10,000 incentive for apprentices training in the residential housing sector. 

These actions build on our comprehensive supply agenda. We have set an aspirational target, with all levels of government and industry, to build 1.2 million homes over five years.

Banning foreign investors from buying existing homes

We’re extending the ban on foreign investors buying existing homes until mid-2029, meaning Australians will be able to buy homes that would have otherwise been bought by foreign investors.

Current limited exceptions to the ban for purchases of established dwellings that support housing supply will continue. 

Making renting fairer and more affordable

Renters should be able to experience the stability that makes a house into a home. 

That’s why we’re continuing to work with the states and territories to implement National Cabinet’s Better Deal for Renters. 

As a result, most states have now banned ‘no grounds’ evictions, limited rent increases to once per year and set minimum rental standards. 

Our Build to Rent tax incentives are also helping to unlock more long-term rental housing right across the country. 

And we continue to support Australians doing it tough through Commonwealth Rent Assistance. Since coming to government, we have increased Commonwealth Rent Assistance by more than 50% for over 1.4 million Australian households.

Backing Australians doing it toughest

Too many young people, who are at most risk of homelessness, are locked out of social housing due to a structural inequity that makes it harder for Community Housing Providers to house them.

That’s why we’re investing $59.4 million to supplement rental income for Community Housing Providers delivering social housing for over 4,000 young people, aged 16-24, who are in receipt of the Away from Home rate of Youth Allowance or ABSTUDY and who are at risk of, or experiencing, homelessness.

This investment will change lives – helping vulnerable young Australians escape homelessness, addressing intergenerational housing inequality, and easing cost-of-living pressures. 

We’re also continuing to roll out our ambitious social and affordable housing agenda, delivering 55,000 social and affordable homes right across the country. 

And in this Budget, we are releasing a further $100 million from the Housing Australia Future Fund to improve the quality of housing for First Nations Australians in remote communities.

After a decade of inaction, we’re taking decisive action to boost housing supply and help more Australians into homes.

This Budget is all about resilience and reform, and helping more Australians into homes is an important part of our agenda.

Source: Prime Minister of Australia

he Albanese Labor Government is delivering a stronger and more sustainable Budget with smaller deficits, less debt and net policy decisions that improve the bottom line.

Responsible economic management is a defining feature of this Government and this Budget is our most responsible yet.

Strong fiscal discipline is even more important at a time of heightened global uncertainty, and that’s exactly what we’re delivering. 

Decisions in this Budget mean we are saving more than we’re spending, compared to the mid-year update.

Our saves are greater than revenue upgrades and the budget impact of tax reform.

We have taken difficult decisions for the right reasons, delivering a Budget that is now $44.9 billion stronger than was forecast at MYEFO.

It is more than a quarter of a trillion dollars better than what the Coalition left us.

This is possible because of our responsible approach to finding savings and reprioritisations, spending restraint and banking all revenue upgrades.

These actions mean that this budget update is helping to take the pressure off inflation and building fiscal buffers at a time of global uncertainty.

The Government’s decisions mean: 

• The Budget is $44.9 billion stronger than the mid-year update and $264 billion better than what we inherited.
• The deficit in 2026-27 is $31.5 billion, $2.8 billion lower than MYEFO and $7.8 billion lower than we inherited.
• Debt is down a further $18 billion in 2026-27 than forecast in the mid-year update and is now $173 billion better than we inherited. This means we avoid more than $70 billion in interest costs over the decade.
• The peak in gross debt is now forecast to be 35.8 per cent of GDP, 1.2 percentage points below the mid-year update and 9.1 percentage points below what we inherited.
• Gross debt as a percentage of GDP remains below what we inherited in every single year.
• We’ve found a further $63.8 billion in savings and reprioritisations, taking the total since coming to government to almost $180 billion.
• Net policy decisions are positive for the second consecutive update, with net decisions accounting for provisions totalling $26.1 billion over the forward estimates.
• Real payments growth averages just 1.5 per cent for the eight years to 2029-30, the lowest rolling eight-year average in almost three and a half decades. Average growth is less than half the 30-year average and around a third of the 4.1 per cent average of our predecessors.
• For the first time on record, consecutive updates have returned every single dollar of revenue upgrade to the bottom line. This means the Government has returned 76 per cent of revenue upgrades. Our predecessors never returned every dollar of revenue upgrade, averaging a return of around 40 per cent.

Looking further ahead, the budget bottom line is better and debt is lower in every year of the medium term. 

This is a result of disciplined decisions the Government has taken to rebuild fiscal buffers, including putting the NDIS on a sustainable growth trajectory, banking revenue upgrades and structural reforms to the tax system.

While there is a lot of uncertainty, Treasury are projecting the Budget will return to balance over the medium-term. They would not project this were it not for the Government’s structural improvements to the Budget. 

Australia is not immune from uncertainty and volatility in the global economy as a result of conflict in the Middle East. 

We are well placed and well prepared to confront these challenges with faster growth at the end of last year than any major advanced economy, low unemployment, solid wage growth and stronger public finances than most of the developed world.

Australia remains one of only nine countries with a AAA sovereign credit rating from all three major ratings agencies and has lower gross debt than every major advanced economy.

When we came to Government, we inherited a trillion dollars of debt, bigger deficits and stagnant wages.

We’ve made real progress on the Budget at the same time as we’re providing responsible cost of living relief like new tax cuts for Australian workers, making the economy more productive and funding the services Australians rely on.

This Budget is all about resilience and reform, and a stronger and more sustainable Budget is central to this agenda.

Source: South Australia County Fire Service

This warning was reissued to correct typographical errors

Issued on
12 May 2026 18:06

Warning area
Vine Vale, Bethany, Gomersal, Tanunda and Seppeltsfield near Tanunda, approximately 7km south of Nuriootpa in the Barossa Valley.

Warning level
Advice – Avoid Smoke

Action
Smoke from the VINE VALE Hayshed Fire is in the Vine Vale, Bethany, Gomersal, Tanunda and Seppeltsfield area.

Smoke can affect your health. You should stay informed and be aware of the health impacts of smoke on yourself and others.

Symptoms of exposure includes shortness of breath, wheezing and coughing, burning eyes, running nose, chest tightness, chest pain and dizziness or light-headedness.

If you or anyone in your care are having difficulty breathing, seek medical attention from your local GP. If your symptoms become severe, call 000.

More information will be provided by the CFS when it is available.

Source: New South Wales Health – State Government

NSW Health is advising people in the Inner West to be alert for signs and symptoms of measles after being notified of two confirmed cases.
The two cases are not known to each other but are linked to an earlier NSW case in a returned traveller from South-East Asia, where there are ongoing outbreaks of measles.
One case visited several locations across the Inner West while unknowingly infectious, including healthcare facilities.
A full list of locations is available on the NSW Health website. Exposure locations and times are updated regularly.
People who attended the locations should watch for symptoms of measles. These locations do not pose an ongoing risk.
If it has been less than 6 days since the exposure at these locations and you are pregnant, have a weakened immune system or have an infant who was exposed, you are advised to contact your local Public Health Unit on 1300 066 055.
There is currently an increased risk of measles in NSW, with 16 cases confirmed since 1 January 2026.
Dr Christine Selvey, Director of Communicable Diseases NSW said people should monitor for symptoms of measles, particularly if they have visited any of the exposure locations at the listed time.
“If symptoms develop and you’ve been at one of the locations at the time listed on the website, see your doctor or health service, including an emergency department. Call ahead to let them know that you may have come into contact with measles so you don’t spend time in waiting rooms with other patients,” Dr Selvey said.
“Symptoms to watch out for include fever, runny nose, sore eyes and a cough, usually followed three or four days later by a red, blotchy rash that spreads from the head to the rest of the body.
“Anyone with early symptoms who gets a rash a few days later should also think about measles, even if they haven’t attended one of the identified locations, and seek testing.
“It can take up to 18 days for symptoms to appear after an exposure, so it’s important for people who visited these locations to look out for symptoms for this period.”
Measles is a vaccine preventable disease that is spread through the air when someone who is infectious coughs or sneezes.
“Importantly, we want to remind the community to make sure they are up to date with their vaccinations. The measles vaccine can prevent the disease even after exposure, if given early enough,” Dr Selvey said.
“Anyone born after 1965 needs to ensure they have had two doses of measles vaccine. This is especially important before overseas travel, as measles outbreaks are occurring in several regions of the world at the moment.”
The measles-mumps-rubella (MMR) vaccine is safe and effective, and is given free for children at 12 and 18 months of age. It is also free in NSW for anyone born after 1965 who hasn’t already had two doses.
Children under the age of 12 months can have a dose of MMR from six months of age if they are travelling overseas. Parents should consult their GP.
People who are unsure of whether they have had two doses should get a vaccine, as additional doses are safe. This is particularly important prior to travel. MMR vaccine is available from GPs (all ages) and pharmacies (people over 5 years of age).
For more information on measles, view the measles factsheet .
People can also visit the Australian Government Smart Traveller website for information on health risks, including measles outbreaks relevant to their travel destination.
If you, or a loved one, is experiencing measles symptoms, or have questions about measles, please call your GP or healthdirect on 1800 022 222.

Source: New South Wales Health – State Government

NSW Health is advising people in Western Sydney to be alert for signs and symptoms of measles after being notified of a confirmed case.
This person has had no known contact with anyone else with measles and did not attend any known exposure locations in Sydney.

With the source of the infection unknown, it is likely measles is currently circulating within the community, and other people may have been unknowingly exposed to measles.
The person visited several locations across Western Sydney while unknowingly infectious, including healthcare facilities.

A full list of locations is available on the NSW Health website​. Exposure locations and times are updated regularly.
People who attended these locations should watch for symptoms of measles. These locations do not pose an ongoing risk.

If it has been less than 6 days since the exposure at these locations and you are pregnant, have a weakened immune system or have an infant who was exposed, you are advised to seek advice from your GP who can contact your local Public Health Unit on 1300 066 055.

There is currently an increased risk of measles in NSW, with 23 cases confirmed since 1 January 2026.
Western Sydney Local Health District Public Health Physician, Dr Conrad Moreira, said people should monitor for symptoms of measles, particularly if they have visited any of the exposure locations at the listed time.

“If symptoms develop and you’ve been at one of the locations at the time listed on the website, see your doctor or health service, including an emergency department. Call ahead to let them know that you may have come into contact with measles so you don’t spend time in waiting rooms with other patients,” Dr Moreira said.

“Symptoms to watch out for include fever, sore eyes, runny nose and a cough, usually followed three or four days later by a red, blotchy rash that spreads from the head and face to the rest of the body.

“Anyone with early symptoms who gets a rash a few days later should also think about measles, even if they haven’t attended one of the identified locations, and seek testing.
“It can take up to 18 days for symptoms to appear after an exposure, so it’s important for people who visited these locations to look out for symptoms for this period.”

Measles is a vaccine preventable disease that is spread through the air when someone who is infectious coughs or sneezes.

“Importantly, we want to remind the community to make sure they are up to date with their vaccinations. Measles vaccine can prevent the disease even after exposure, if given early enough,” Dr Moreira said.

“Anyone born after 1965 needs to ensure they have had two doses of measles vaccine. This is especially important before overseas travel, as measles outbreaks are occurring in several regions of the world at the moment.”

Measles-mumps-rubella (MMR) vaccine is safe and effective and is given free for children at 12 and 18 months of age. It is also free in NSW for anyone born after 1965 who hasn’t already had two doses.

Children under the age of 12 months can have an extra, early, dose of MMR from six months of age if they are travelling overseas. Parents should consult their GP.

People who are unsure of whether they have had two doses should get a vaccine, as additional doses are safe. This is particularly important prior to travel. MMR vaccine is available from GPs (all ages) and pharmacies (people over 5 years of age).

People can also visit the Australian Government Smart Traveller website for information on health risks, including measles outbreaks relevant to their travel destination.

If you, or a loved one, is experiencing measles symptoms, or have questions about measles, please call your GP or Healthdirect on 1800 022 222.

Source: New South Wales Health – State Government

NSW Health is advising people to be alert for signs and symptoms of measles after being notified of a confirmed case.
This case is a returned traveller from South and Southeast Asia, where there are ongoing outbreaks of measles.
The person visited several locations while unknowingly infectious, including healthcare facilities. 
A full list of locations is available on the NSW Health w​ebsite​. Exposure locations and times are updated regularly. 
People who attended these locations should watch for symptoms of measles. These locations do not pose an ongoing risk. 
If it has been less than 6 days since the exposure at these locations and you are pregnant, have a weakened immune system or have an infant who was exposed, you are advised to contact your local Public Health Unit on 1300 066 055.
There is currently an increased risk of measles in NSW, with 48 cases confirmed since 1 January 2026.
Nepean Blue Mountains Local Health District Public Health Unit Staff Specialist, Dr Alvis Zibran said people should monitor for symptoms of measles, particularly if they have visited any of the exposure locations at the listed time. 
“If symptoms develop and you’ve been at one of the locations at the time listed above, see your doctor or health service, including an emergency department. Call ahead to let them know that you may have come into contact with measles, so you don’t spend time in waiting rooms with other patients and wear a mask,” Dr Zibran said. 
“Symptoms to watch out for include fever, sore eyes, runny nose and a cough, usually followed three or four days later by a red, blotchy rash that spreads from the head and face to the rest of the body.
“Anyone with early symptoms who gets a rash a few days later should also think about measles, even if they haven’t attended one of the identified locations, and seek testing.
“It can take up to 18 days for symptoms to appear after an exposure, so it’s important for people who visited these locations to look out for symptoms for this period.”
Measles is a vaccine preventable disease that is spread through the air when someone who is infectious coughs or sneezes. 
“Importantly, we want to remind the community to make sure they are up to date with their vaccinations. Measles vaccine can prevent the disease even after exposure, if given early enough,” Dr Zibran said.
“Anyone born after 1965 needs to ensure they have had two doses of measles vaccine. This is especially important before overseas travel, as measles outbreaks are occurring in several regions of the world at the moment.”
Measles-mumps-rubella (MMR) vaccine is safe and effective and is given free for children at 12 and 18 months of age. It is also free in NSW for anyone born after 1965 who hasn’t already had two doses.
Children under the age of 12 months can have an extra, early, dose of MMR from six months of age​​ if they are travelling overseas. Parents should consult their GP.
People who are unsure of whether they have had two doses should get a vaccine, as additional doses are safe. This is particul​arly important prior to travel. MMR vaccine is available from GPs (all ages) and pharmacies (people over 5 years of age).
For more information on measles, view the measles factsheet​. 
People can also visit the Australian Government Smart Traveller website for information on health risks, including measles outbreaks relevant to their travel destination.
If you, or a loved one, is experiencing measles symptoms, or have questions about measles, please call your GP or healthdirect on 1800 022 222.