Federal Budget 2026-27
Helping you understand what the Budget means for Australian households and businesses.
Budget overview
The budget forecasts an underlying cash deficit of $28.3bn in 2025-26 (1.0% of GDP). Higher commodity prices and stronger domestic demand have boosted the bottom line since December’s mid-year update. The deficit is expected to widen to $34.4bn (1.0% of GDP) in 2028-29 as energy prices and interest rates crimp growth.
Main policy decisions
- The savings package (mainly tax and NDIS) is one of the largest since the mid-1990s. However, the savings are backloaded. By 2036-37, these measures aid the bottom line by 1.0% of GDP, up from 0.1% of GDP in 2026-27.
- Other notable initiatives target productivity and economic resilience. A national licensing system and harmonising payroll tax administration will help labour and capital flows. Changes to tax arrangements for small businesses and startups may encourage risk taking. Economic resilience will also be helped by the $15bn fuel package and electric vehicle tax concessions being made permanent.
Federal Budget 2026–27 with Chief Economist Luci Ellis
Key initiatives^
Budget 2026-27 focuses attention on Australia’s resilience, the cost of living and economic opportunity. The savings package (mainly tax and NDIS) is one of the largest since the mid-1990s, but the benefit is backloaded.
What the Budget means for you
Federal Budget: Quick reactions
Few surprises on the night, a fiscal impulse that is still slightly expansionary, and some significant tax changes and productivity reforms.
Federal Budget Infographic
A snapshot of the headline figures and policy highlights of Budget 2026–27.
Federal Budget insights for financial advisers
Explore BT’s expert analysis of the 2026–27 Federal Budget and understand what the key announcements mean for financial advice professionals and their clients.
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Federal Budget insights for financial advisers
Explore BT’s expert analysis of the 2026–27 Federal Budget and understand what the key announcements mean for financial advice professionals and their clients.