While the budget promises “a better tax system for workers, first home buyers and future generations”, some claim it does not go far enough.
At the same time, investment in other areas is being significantly reduced.
Across the budget, regional Australians face at least $11 billion in cuts.
This includes $6.15 billion from the Inland Rail project, $4.7 billion from infrastructure spending, $103 million from the National Water Grid, $191.6 million from pest and disease control, regional trade and drought funding for farmers, and $21.4 million from regional communications funding.
The budget does aim to address ongoing fuel and fertiliser cost concerns, however, by introducing a multi‑billion-dollar fuel and fertiliser security package designed to stabilise supply and reduce input cost volatility for farmers.
The measures are aimed at safeguarding production and food supply chains during ongoing global energy disruptions, although industry groups note that cost pressures remain high.
Healthcare funding also features prominently, with a $25 billion increase in funding for public hospitals nationwide, which is expected to flow through to regional and rural health services.
This investment is intended to improve access to care and reduce service gaps that have historically affected rural communities, where healthcare availability often lags behind metropolitan areas.
A summary of some of the other key ‘winners’ and ‘losers’ is provided.
Winners:
• First-home buyers: a clamp-down on property investment is expected to help around 75,000 people into homeownership. Tax concessions for landlords and investors, including negative gearing and the capital gains tax discount, will be wound back
• Workers: anyone who earns a wage will get a $250 bonus on their tax return from July 2027. The payment will be made permanent and comes on top of other tax relief announced in previous budgets
• Small business owners: the current $20,000 instant asset write off for small businesses will be made permanent from the start of July
Losers
• Future property investors: changes to negative gearing and the capital gains tax will begin hitting investors from mid-2027, but properties currently owned will be grandfathered
• NDIS recipients: changes to eligibility for the National Disability Insurance Scheme will claw back around $15 billion by 2030
• Older Australians: a Howard-era decision to give people over-65 a more generous health insurance rebate has been scrapped to save $3 billion
• Wealthy families with trusts: a 30 per cent minimum tax will be imposed on discretionary trusts, which are often used by wealthy families to split income between family members and minimise tax
• Unskilled migrants: while Australia's overall migrant intake will stay the same, more places will be allocated for skilled migrants, leaving less room for those without crucial qualifications
~ with AAP
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