2026 federal budget: Key measures and updates revealed so far

The Albanese government is preparing to unveil its 2026 federal budget, with a strong focus on housing, cost-of-living relief, national security and long-term economic stability.

Treasurer Jim Chalmers is set to deliver the budget on May 12 as Australia faces rising living costs, global energy uncertainty and growing national debt.

Here are the key measures expected in the budget:

Housing and infrastructure

The government will invest an extra $2 billion in roads, water, power and sewerage projects to support new housing developments.

The funding is expected to help deliver up to 65,000 homes over the next decade, including support for regional areas.

Another $500 million will go toward speeding up approvals for housing, energy and critical minerals projects, including new AI-powered systems.

Fuel security boost

Prime Minister Anthony Albanese announced a $10 billion package to strengthen Australia’s fuel reserves and supply chains.

The plan includes:

• $7.5 billion in support for fuel and fertiliser supplies

• $3.2 billion for a national fuel reserve

• Increased minimum fuel stock requirements

The reserve is expected to store around one billion litres of fuel.

Counter-terrorism funding

The government will establish a new online counter-terrorism centre led by ASIO and the Australian Federal Police.

Around $80 million will be spent on tackling online extremism and youth radicalisation.

Changes to property tax rules

The government is reportedly considering major changes to capital gains tax and negative gearing.

The current 50 per cent CGT discount for investment properties could be removed and replaced with a system linked to inflation.

Negative gearing tax benefits may also be scaled back, with existing investments likely protected under grandfathering arrangements.

One-off tax relief

Reports suggest workers could receive a one-time tax offset between $200 and $300 to ease cost-of-living pressures.

The government has not officially confirmed the payment.

Business and tax measures

The budget is also expected to include:

• A minimum 30 per cent tax on trust distributions

• Extended tax support for businesses recovering from losses

• Increased research and development tax incentives

Farmers and testamentary trusts are expected to be excluded from some changes.

Melbourne rail funding

The federal government will contribute an additional $3.8 billion to Melbourne’s Suburban Rail Loop East project.

The underground rail line will connect major education, health and employment hubs across the city.

Possible fuel excise extension

The government is considering extending the temporary fuel excise cut introduced earlier this year to help households and businesses manage fuel costs.

Medicare urgent care clinics

An extra $1.8 billion will be allocated to expand Medicare Urgent Care Clinics across Australia.

The clinics provide bulk-billed urgent medical treatment without appointments.

NDIS reforms

The government plans to reduce NDIS spending by $15 billion over four years through tighter eligibility checks and anti-fraud measures.

Officials say the reforms are aimed at controlling rising costs and protecting the long-term future of the scheme.

Defence spending increase

Australia’s defence budget will rise by more than $53 billion over the next decade under the National Defence Strategy.

The funding boost comes amid growing global security concerns and tensions in the Middle East.

Source : News.com

More updates to come on AusNewsLanka.