Live updates: Treasurer Jim Chalmers set to hand down the 2026 federal budget

The government says around 75,000 Australians could be helped into home ownership under tax changes expected in tonight's budget.

The measures, which include adjustments to capital gains tax discounts and negative gearing, have already drawn criticism from the Opposition, who argue they represent a shift from earlier commitments.

The government says tax changes in the budget will help 75,000 young Australians into their first homes. Source: AAP / Lukas Coch

Speaking to the ABC's Afternoon Briefing ahead of the budget lockup, Finance Minister Katy Gallagher said Treasury's analysis suggests the changes are aimed at improving housing access, with modelling indicating more first-home buyers could enter the market as conditions become more favourable for owner-occupiers.

"Essentially making negative gearing less attractive, and making the arrangements that will be announced by the treasurer tonight, you know, results in that outcome."

— Avneet Arora

Treasurer Jim Chalmers' speech will be streamed on the SBS News website and mobile app, and on the SBS News YouTube and Facebook pages, tonight at 7.30pm AEST.

SBS World News will also broadcast a federal budget special at 10pm AEST, featuring a full analysis of what the budget means for you.

You can watch that on free-to-air television, the SBS News YouTube and Facebook pages, or SBS On Demand.

The budget papers will be made available to the public on the Government Budget Portal.

— Avneet Arora

The federal budget is the Australian government's plan for how it collects and spends public money each year.

Funded mainly through taxes, it pays for key services and responsibilities including welfare, healthcare, defence and infrastructure.

The budget is presented as a set of financial documents outlining the government's view of the economy, its priorities for the year ahead, expected revenue, and planned spending. These are a collection of proposed laws — called appropriation bills — that must be passed by both the House of Representatives and the Senate before the government can collect and spend funds.

The budget is prepared by the treasurer and Treasury, developed with cabinet and other ministers, and finalised before it is introduced into parliament.

After it is delivered, the federal Opposition responds at a later date with the budget reply speech, setting the stage for the political debate over the government's economic agenda.

— Avneet Arora

Treasurer Jim Chalmers will deliver his federal budget speech live from Parliament House in Canberra at 7.30pm AEST tonight.

That's 7pm ACDT in South Australia and the Northern Territory, and 5.30pm AWST in Western Australia.

The speech typically runs for around 30 minutes, setting out the government's key spending plans and economic priorities for the year ahead.

— Avneet Arora

Tonight's federal budget is shaping up as a wide-ranging package targeting housing, tax reform, defence and cost of living.

• The government has signalled a push to address intergenerational inequity, with changes to capital gains tax, negative gearing and family trust arrangements on the table
• In transport, electric vehicles under $91,387 will no longer be exempt from the fringe benefits tax, with the government slowly phasing out the incentive to a 25 per cent discount over a two-year period
  • From April 2027, the full exemption will be limited to vehicles under $75,000. Electric vehicles between $75,000 and $91,387 will instead receive a permanent 25 per cent discount on the fringe benefits tax.
  • From April 2029, all EVs under $91,387 will receive only the 25 per cent discount.
• Defence spending is set to rise by $53 billion over the next decade
• A $10 billion fuel package will lift Australia's minimum fuel stockholding requirement to 50 days
• Housing is another major focus, with a $2 billion infrastructure fund expected to support up to 65,000 new homes
• On tax, Australians will be able to claim a $1,000 instant deduction without receipts on their 2026–27 return
• The budget also includes NDIS reforms and $60 million to expand access to community housing for young people
• The government is set to announce an extra $3.8 billion for Victoria's Suburban Rail Loop project

Read in detail what we know so far in this article from our digital political reporter, Ewa Staszewska.

READ MORE

What time is the 2026 federal budget? Here's everything we know so far

— Avneet Arora

Hello and welcome to our federal budget live blog. It's great to have you here!

Treasurer Jim Chalmers will hand down the Albanese government's latest budget tonight, and will deliver a speech at 7.30pm AEST at Parliament House.

The budget is expected to focus heavily on cost of living pressures, housing, health and economic resilience amid ongoing global uncertainty.

Throughout the afternoon and evening, our live blog will deliver:

• The latest developments ahead of the speech
• Highlights from the treasurer's budget speech
• Key announcements and major spending measures
• Analysis of the winners and losers
• What the budget means for the cost of living, housing, tax, energy and more
• Reaction from economists, industry groups and political leaders
• Opposition and crossbench responses

Stay with us throughout the evening — the budget papers are thick, but we'll keep it simple.

— Avneet Arora