2026/27 Federal Budget wrap-up

On Tuesday 12 May 2026, the Treasurer, the Hon Dr Jim Chalmers MP, handed down the latest Federal Budget.

TasCOSS commend the genuine attempt made by the Albanese Government in this Budget to tackle inequities in the tax system, enable more people to buy their first home and boost productivity.

Regrettably, those who are most in need of help, including the 27,300 Tasmanians on JobSeeker and Youth Allowance, will not get the financial assistance they need amid a cost of living crisis.

While the Working Australian Tax Offset will provide financial relief to many Australian families, we are disappointed the more than 50,000 Tasmanians who earn less than the tax-free threshold will not benefit from this measure.

We welcome property tax changes aimed at curbing benefits for investors. The housing market is broken and requires intervention, and while the changes won’t please all, it is much needed reform to ensure a fairer, more accessible and affordable housing market, particularly for renters and those looking to get a foothold in the market.

Given the level of need (5,553 Tasmanians are currently on the social housing waitlist), we’d hoped the Government would go further and bolster the national social housing targets to increase social housing to at least 6% of homes over a decade and 10% of homes over the next two decades.

$37 billion in cuts to the National Disability Insurance Scheme (NDIS) is cause for concern. There are 16,439 NDIS participants in Tasmania and many people with disability are alarmed and fearful of what these major cuts to the NDIS will mean for them.

We’ve collated feedback and reactions to the Budget from the community services industry, which you can view at the following links:

If you’d like to get in touch with your response to the Budget or have any questions, please contact Stephen Durney, Senior Policy Officer, via email.

More 2026/27 Federal Budget analysis and information: