Australian budget delivers A$250 tax cut for millions of workers
Australian Treasurer Jim Chalmers unveiled an A$250 tax cut for 14 million workers in the 2026-27 budget. The package is paired with an increase in the capital gains tax applied to high-income earners. The government foregrounded the cost-of-living burden as a major policy priority.
Under the budget delivered by Treasurer Chalmers at midnight, a standard A$250 annual tax cut will apply to workers earning under A$45,000. Officials said the total cost over four years is expected to be around A$18 billion.
The budget also reduces the capital gains tax discount from 50% to 40%; the change targets higher-earning investors and is forecast to raise about A$14 billion in additional revenue. Negative gearing on existing homes is also being scrapped from budget night onwards. Industry representatives are assessing potential effects on the rental market.
Economists assess that the budget's overall inflation impact is likely neutral, but it may modestly support household consumption. The Reserve Bank of Australia said it will discuss the budget in detail at its June meeting. The Australian dollar closed broadly stable against the US dollar.
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