Australia 2026 Budget: Chalmers Hands Down Smaller Deficits in Fifth Budget
Australian Treasurer Jim Chalmers delivered the country's fifth federal budget under Labor with notably smaller deficit projections for coming years. Strong commodity revenues and a resilient labour market underpin the improved figures. Housing, defence and energy headline an election-year package.
Treasurer Chalmers told parliament the underlying federal deficit is expected to land around A$26.5 billion this year and narrow markedly next year. Favourable iron-ore and coal prices, plus extra revenue from energy exports after the Iran war, drove the upgrade.
The budget includes housing-supply incentives, multi-year defence spending increases and energy-bill relief for low-income households. Mining royalties and a recalibrated carbon levy are also central.
Opposition argued the projections lean too heavily on 'extraordinary commodity windfalls.' Independent economists said the RBA's policy stance will hinge on how the budget is implemented; the Aussie dollar and bond yields traded choppily.
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