Chalmers Hands Down 2026 Budget, Says Labor Has Chosen 'Hard Road of Reform'
Australian Treasurer Jim Chalmers handed down the 2026-27 federal budget, unveiling A$12 billion to ease the housing supply shortage, an 11% jump in defence spending and a A$4 billion cost-of-living package against the Iran-war energy shock. The deficit is forecast at 1.8% of GDP.
In his budget speech in Parliament, Chalmers said the government had refused 'the easy path' and chosen the 'hard road of reform'. The housing package funds 50,000 new social homes a year for four years plus expanded rent assistance for working families.
The 11% defence increase was justified by progress on the AUKUS submarine programme and rising geopolitical tension in the Pacific. The cost-of-living package offers up to A$750 per household in electricity-bill rebates, investment in a free fast-charging network and fuel support for low-income families.
Opposition leader Sussan Ley called the package 'pre-election spending' and warned it would widen the deficit. The Reserve Bank of Australia repeated that any rate-cut timing depends on the Iran conflict. The Australian dollar strengthened 0.3% against the US dollar after the speech.
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