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The Australian Federal Budget 2026-27 will be announced on Tuesday 12 May, 7.30pm.
Delivered once a year by the Treasurer (which is currently Jim Chalmers), the Federal Budget is essentially the ‘forward plan’ for the country’s finances. It details how the government plans to spend money (such as programs or rebates), and also make money (such as changing tax rates).
While a lot of the budget’s details are kept secret until the official announcement, there’s often plenty of hints and updates from ministers beforehand, which the Canstar team have been keeping a close eye on.
Here’s a summary of what’s been confirmed, and speculated to be included in the Federal Budget announcement this year:
What: Private health rebate cut for over 65s
Status: Confirmed
- Who will it impact? About 3 million Australians
- What does it mean? Australians who take out private health cover receive a rebate from the government (essentially a discount) which is determined by age and income. The government has announced it will reduce the rebate for those aged 65+.
- Find out what that could mean for older Australians here
What: Support for aged care residents
Status: Confirmed
- Who will it impact? Aged care
- What is it? The government has announced it will invest more than $3 billion to support residents in aged care, including new beds and the ‘Support at Home’ program.
What: NDIS reform
Status: Confirmed
- Who will it impact? Australians on the NDIS, service providers on the NDIS
- What is it? Eligibility for the NDIS will be tightened, with it projected to reduce participants in the program by over 160,000 over the next four years. There will also be increased regulation for providers on the program, with the goal to reduce fraud while also increasing the quality of care.
What: Increased spending on defence
Status: Confirmed
- Who will it impact? Australian Defence Force
- What is it? $53 billion to be spent on Australia’s defence over the next ten years.
What: Cash handout for workers
Status: Speculated
- Who will it impact? Working Australians
- What is it? While not confirmed by Labor, it has been reported that the Federal Budget will include a tax offset of up to $300, to be applied to every Australian worker who pays tax.
What: $1,000 no receipt tax deductions
Status: Confirmed (from last year)
- Who will it impact? Anyone who claims work expenses at tax time but doesn’t keep receipts
- What is it? Announced last year, the government will introduce a new option for tax deductions, allowing workers to claim a flat amount for expenses up to $1,000, instead of doing an itemised breakdown with every single receipt.
What: EV tax break change
Status: Confirmed
- Who will it impact? Anyone considering buying an EV and using the Fringe Benefits Tax
- What is it? Labor has confirmed it will be adjusting the tax breaks for electric vehicles (part of the Fringe Benefits Tax). The change will happen over three phases, with the final phase from 1 April 2029.
What: Capital Gains Tax reform
Status: Speculated
- Who will it impact? Anyone buying an asset
- What is it? Changes to Capital Gains Tax have not been confirmed by Labor but largely speculated and expected, with suggestions that the government will shift the current policy, which provides a 50% discount to assets held for over 12 months, to a policy based on indexation. There could also be changes to negative gearing as well for investors.
What: Fuel plan
Status: Confirmed
- Who will it impact? Anyone who uses petrol
- What is it? Labor has confirmed the 'Australian Fuel Security and Resilience package', which will deliver more than $10 billion into establishing a fuel security reserve, facility to increase storage and supply, and a study into fuel refining capabilities.
What: Tax rate change
Status: Confirmed (from last year)
- Who it will impact: Every tax payer
- What is it: From 1 July, the tax rates will change, with the 16% tax rate reduced to 15%. From 1 July 2027, it will reduce further, to 14%.
