The 2026 federal budget has been unveiled, bringing a mix of relief and pain for Australians. Among the key changes, the passenger movement charge on international flights and cruises will rise by $10 to $80 from January 2027, generating an extra $210 million annually for the government. This budget, delivered against a backdrop of global tensions and persistent inflation, aims to support taxpayers while tightening the screws on wealthy families and migrants.
Budget Winners
Taxpayers
Working Australians are set to benefit from a new permanent tax offset of up to $250 from the 2027-28 income year, expected to apply to over 12.5 million people. This complements the already lowered 15% tax rate for incomes between $18,201 and $45,000 from July 2026, dropping further to 14% from July 2027. Additionally, from 2026-27, taxpayers can claim an instant tax deduction of $1,000 without keeping receipts.
Public Servants
The bureaucracy will expand to its largest ever average staffing level of 217,256 for 2026-27, up from 215,941. However, the Australian Competition and Consumer Commission will lose about 300 roles, and the National Disability Insurance Agency will cut almost 700 positions.
Commercial TV and Radio Networks
Networks like Nine, Seven, and Ten, along with commercial radio, will be exempt from the commercial broadcasting tax for two years until June 2028, saving them $111.3 million over five years. Australian Associated Press will receive $15 million to support journalism.
Scientists and Space Enthusiasts
The National Measurement Institute gets $273 million for IT and maintenance, the Australian Space Agency receives $21.7 million, and the CSIRO gains a $387.4 million boost.
First Home Buyers
Around 75,000 people are expected to benefit from higher taxes on property investors, as capital gains tax and negative gearing reforms aim to push investors out. However, renters may face a $2 weekly increase in rents.
Budget Losers
Endangered Species
Only $99.6 million over two years is allocated for conservation and planning, far below what experts deem necessary for protecting species like the greater glider.
Rich Families
From 2028, discretionary trusts will be subject to a minimum 30% tax, targeting the wealthiest 10% who hold most private trust wealth. This measure is expected to raise $4.5 billion annually.
Dodgy E-Bike Sellers
The government has allocated $6.6 million to strengthen product safety, including e-bike standards and recall improvements.
Overseas Travellers
The passenger movement charge will increase to $80 from 1 January 2027, making international travel more expensive.
Hopeful Migrants
Migration numbers will be cut through stricter permanent visa rules and a revised points system, with working holiday visas more often allocated by ballot.
People Out of Work
Unemployment is expected to rise to 4.5%, with nearly 50,000 more Australians jobless. JobSeeker remains capped at $58 per day, and the $250 tax rebate is only for workers.
Freight Rail Enthusiasts
The inland rail project will now terminate in Parkes, New South Wales, saving $4.4 billion. However, passenger rail gains $3.8 billion for Melbourne’s Suburban Rail Loop, $660 million for Newcastle to Sydney high-speed rail, and $50 million for the Sydney-Canberra corridor.
