Treasurer Jim Chalmers delivers the 2026 federal budget — as it happened

With the budget delivery just over an hour away, business groups are keeping expectations focused on one thing: making it cheaper and simpler to do business.

Across employer and industry circles, the message has been consistent — cut costs, reduce red tape and create more certainty for investment and hiring. Small business groups are also pushing for stable tax settings and a permanent instant asset write-off to support long-term planning.

Council of Small Business Organisations Australia CEO Skye Cappuccio told SBS News: "The instant asset write-off is a proven measure to support small businesses to invest in their own growth."

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As part of its "productivity package", the government says it will respond by cutting business compliance costs by $10 billion a year, making the $20,000 instant asset write-off permanent for small businesses, scrapping fees for mandatory construction standards, easing electronic record-keeping rules and simplifying climate-related financial disclosures.

For many businesses, the priority is less about big surprises and more about confidence to invest and grow.

— Avneet Arora

With the war in the Middle East shocking global energy markets, the Reserve Bank of Australia governor Michele Bullock has said Australia is "staring down the barrel" of a very rough time, as economic growth slows, inflation rises, and unemployment slowly picks up.

It's a trio of conditions that some economists warn could see a return of "stagflation", a policy nightmare not seen in Australia since the late 1970s-early 1980s.

The challenge for Treasurer Jim Chalmers tonight is how to deliver cost of living relief, without fuelling an inflationary crisis that could push the economy over the edge.

— Avneet Arora

Much of the focus during today's Question Time landed on speculation that the government may shift its position on the capital gains tax and negative gearing — something the Opposition has framed as a broken election promise.

Opposition leader Angus Taylor led the charge, questioning whether Australians can still trust the prime minister if those changes go ahead.

Prime Minister Anthony Albanese promised not to change capital gains tax or negative gearing ahead of last year's federal election.

Other MPs also pressed the issue, but Albanese avoided directly addressing the claims.

He said: "Our budget will be true to Labor values and Australian values, fairness and aspiration, as we go forward."

— Avneet Arora

The Greens have welcomed the expected property tax changes in the budget, describing them as a major opportunity to tackle housing affordability.

Greens finance spokesperson Nick McKim told the ABC's Afternoon Briefing: "This is a massive opportunity for Labor, a once–in–a–generation opportunity to bring some fairness back into our economic system and to take real steps to fix the housing crisis."

However, he questioned whether Labor would fully embrace the changes after previously ruling them out before the election.

"The housing crisis has got even worse since the last election, and even worse since Labor came into government, the election before," he said.

"A lot of that is because of the policies Labor has put in place.

"The point is when circumstances change, so should your policies."

— Avneet Arora

Every year before the budget is released, journalists, key stakeholders, and more recently content creators, are brought into what's called a 'lock-up' in Canberra. And, yes, it's exactly what it sounds like.

Once inside, they can't contact the outside world. No phones, no internet, no updates to their newsrooms until the embargo lifts when the treasurer starts delivering the budget speech.

Once upon a time, this system was mainly about protecting financial markets from being moved by early leaks. These days, it's less about the markets and more about ensuring coverage is controlled.

Inside the lock-up, it's a bit of a pressure cooker: reporters comb through budget doucments, pulling out the key spending decisions, forecasts and policy changes so they're ready to publish the moment the budget is officially released.

Think of it as a controlled preview — enough time to dig into the detail, but no spoilers until the treasurer stands up in parliament.

— Avneet Arora

The Coalition has flagged it may oppose any changes to negative gearing and capital gains tax expected in tonight's budget, arguing the measures could hurt housing supply.

Deputy Liberal leader Jane Hume said the Opposition's default position would be against higher taxes, particularly if the changes are aimed at raising revenue rather than boosting housing availability.

"Higher taxes mean you get less of something, we want to see more houses, not fewer," she told the ABC's Afternoon Briefing.

"We instinctively will say if this is just a tax grab, a cash grab, because the Labor government [is] cash-strapped, well, that is not something we can support."

Hume stopped short of confirming whether a future Coalition government would repeal the measures, saying more detail would come in Opposition leader Angus Taylor's budget reply speech on Thursday night.

— Avneet Arora

Capital gains tax (CGT) applies when someone sells an asset — such as property or shares — after holding it for more than 12 months.

Individuals currently receive a 50 per cent discount on the taxable gain, meaning only half the profit is taxed at their marginal rate.

Tonight's budget is expected to include changes to CGT settings, alongside broader housing measures, as the government looks for ways to address affordability pressures.

Some economists argue tightening the concession could help ease pressure on house prices over time by reducing incentives for property investment.

Treasurer Jim Chalmers has said there would be a tax reform package in the budget tied to "issues of fairness at the intersection of the housing market and the tax system". Source: AAP / Lukas Coch

Tim Thornton, director of the School of Political Economy in Melbourne, previously told SBS News tighter rules could shift incentives in the housing market.

"Such tax concessions should really only be permitted in instances where investors are constructing new housing stock rather than just bidding up the price of old bricks and mortar," he said.

But others caution against expecting major or immediate changes to housing prices.

Rich Insight economist Chris Richardson said changes to CGT would not be a "magic wand" for housing affordability, arguing the main reason for reform is to improve the tax system rather than dramatically lower prices.

— Avneet Arora

In a pre-budget interview, Treasurer Jim Chalmers described Australia's housing market and tax system as "unfair and unacceptable", again signalling that major housing-related tax reforms are on the table in the budget.

He also pushed back on recession concerns and expectations of large-scale cost of living cash payments, saying the focus is on longer-term structural issues rather than one-off splashes. He warned the economy is being heavily influenced by global instability, particularly tensions in the Middle East, saying Australia is "hostage" to developments abroad.

"There's a lot that is happening in (Washington) DC and Tehran and elsewhere which is impacting very, very substantially on our economy, on inflation, on growth," he said.

"Australians are paying a very hefty price for this war in the Middle East."

Watch the treasurer's full interview with SBS News' chief political correspondent Anna Henderson here:

— Avneet Arora

Prime Minister Anthony Albanese insists his government's anti-gambling reforms will make a "meaningful difference" to stop Australians being the world's biggest losers on punting.

But independent MPs and harm reduction advocates have labelled long-awaited changes lacklustre and beholden to the gambling lobby.

The government has chosen not to progress a national gambling regulator, a key recommendation of a 2023 parliamentary probe into gambling harm.

That review, chaired by late Labor MP Peta Murphy, finally got a formal response on Tuesday, more than 1,000 days after it was made public.

ACT Senator David Pocock led condemnation of the government's response, saying it didn't address its 31 recommendations and was "both cowardly and disrespectful".

"Cowardly because they are not willing to actually just front up on a day when journalists (are) in budget lock-up ... and disrespectful because they don't even respond to those 31 recommendations," he said.

— Australian Associated Press

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.

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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