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Chalmers Announces $14.8bn Fuel Boost, Housing Reforms

5/12/2026

Summary

Chalmers Unveils Budget

Treasurer Jim Chalmers delivered 2026-27 Budget and announced a $14.8 billion fuel package funds a $7.5 billion facility, $3.2 billion reserve, halves excise and suspends charge.
From 1 July 2027 reforms limit negative gearing to new-builds, switch 50% capital-gains tax discount to indexation, and extend foreign-buyer ban mid-2029, aiding 75,000 homeowners.
A $2 billion Local Infrastructure Fund will support up to 65,000 homes and raise rent assistance by more than 50 percent for 1.4 million households.

Summary

Marles Boosts Defence

Defence Minister Richard Marles announced a $53 billion defence boost, partly funded by selling military land, to lift spending to 3 % of GDP by 2033.
An extra $100 million will upgrade the 321-km Sydney-Canberra rail corridor, with the federal government covering half and NSW and ACT each providing $25 million.
U.S. President Donald Trump urged Australia and NATO allies to raise defence spending, saying the United States bears a disproportionate burden.

Summary

Butler Cuts NDIS

Mark Butler announced a $15 billion NDIS cut to $55 billion by 2030, from $70 billion.
Treasury’s superannuation performance test consultation ends June 19 and warns it may deter energy investment.
Opposition leaders say easing test would let government rig super fund investments.
Migration points test will be altered and qualification recognition sped up, urged by Martin Parkinson.
Federal funding for Victoria’s Suburban Rail Loop rose by $3.8 billion to $6 billion for $34.5 billion project.

History

Historical Context

After Kevin Rudd’s A$42 billion 2009 stimulus helped Australia dodge the global recession, Treasury adviser Ken Henry warned it prevented a 1.5 % GDP drop. The 2026-27 budget echoes that model: Treasurer Jim Chalmers proposes a A$14.8 billion fuel package and Defence Minister Richard Marles a A$53 billion defence boost and major rail upgrades, keeping fiscal outlays high.

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Chalmers Unveils Budget

Treasurer Jim Chalmers delivered 2026-27 Budget and announced a $14.8 billion fuel package funds a $7.5 billion facility, $3.2 billion reserve, halves excise and suspends charge.
From 1 July 2027 reforms limit negative gearing to new-builds, switch 50% capital-gains tax discount to indexation, and extend foreign-buyer ban mid-2029, aiding 75,000 homeowners.
A $2 billion Local Infrastructure Fund will support up to 65,000 homes and raise rent assistance by more than 50 percent for 1.4 million households.

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