May 12, 2026
Federal Budget 2026-27: Key Portfolio Measures

🔐 Defence | Foreign Affairs and Trade

Defence spending is set to increase in line with the National Defence Strategy and the Integrated Investment Program. This includes enhanced maritime capability, including the Henderson Defence Precinct, the Nuclear-Powered Submarine Program, and General-Purpose Frigates. 

Key measures
  • $6.8 billion over four years to deliver the 2026 National Defence Strategy and Integrated Investment Program.
  • $863.8 million for the Nuclear-Powered Submarine Program, including funding for the ongoing operation of the Australian Submarine Agency, policy and legal advice, and safeguards and nuclear security regulation.
  • $600 million over four years to enhance defence cooperation in the Indo-Pacific, including implementing the Papua New Guinea – Australia Mutual Defence Treaty and expanding defence infrastructure investments.
  • $187.8 million over four years to enhance Australia’s engagement with the Pacific, including $14.1 million over two years for the ABC to continue the Indo-Pacific Broadcasting Strategy.
  • $110.2 million over five years from 2025–26 to increase Australia’s tourism, trade and investment opportunities and to implement the Australia-European Union Free Trade Agreement. 
  • $106.4 million over six years to establish an open, competitive grant program to continue support for the strategic policy sector.
  • $35.3 million over two years for the Australian Safeguards and Non-Proliferation Office within the Department of Foreign Affairs and Trade to deliver safeguards and nuclear security regulation.
  • $25.3 million over four years to implement the next phase of the India-Australia Comprehensive Strategic Partnership.
  • $16.6 million over two years to undertake an Independent Inquiry into Military Sexual Violence in the Australian Defence Force and to implement the Government’s response to the Royal Commission in Defence and Veteran Suicide. 
  • $6.7 million in 2025–26 for military assistance, including providing Advanced Medium Range Air-to-Air Missiles to the UAE.  
Further reading

⚖️ Home Affairs | Attorney-General

The Budget confirms the permanent migration program will remain capped at 185,000, with over 70 per cent reserved for skilled migrants. The Government reaffirmed its commitment to national security and social cohesion amid an increase in antisemitism and terrorism with additional funding to counter threats online and to prevent violent extremism and youth radicalisation.

Key measures
  • $604.2 million over five years from 2025–26 to respond to the Bondi terrorist attack.
  • $167.4 million over four years for improvements to the visa system, including funding for the courts to address misuse of the protection visa system and to strengthen systems capability across the migration system.
  • $117.8 million to implement reforms to the Anti-Money Laundering and Counter Terrorism Financing Act 2006.
  • $89.3 million over four years to sustain and improve Australia’s cyber security initiatives.
  • $50.4 million to continue the work of the Office of the Special Investigator to investigate and support the prosecution of war crimes alleged to have been committed by the Australian Defence Force in Afghanistan.
  • $37.3 million over two years to the Office of the Director of Public Prosecutions to strengthen its capacity to undertake criminal prosecutions on behalf of the Commonwealth.
  • $14.3 million over four years to continue the Commonwealth Fraud Prevention Centre.

🩺 Health and Aged Care | Social Services

Investments in hospitals and primary care continue to be a priority, alongside funding to address gambling harms. Key measures include funding for Medicare Urgent Care Clinics, improving access to medicines and vaccines, and boosting preventive health programs.

Key measures
  • $220.3 billion over five years to support public hospital services and implement the 2026–2031 Addendum to the National Health Reform Agreement.
  • $5.9 billion over five years from 2025–26 for new and updated listings on the Pharmaceutical Benefits Scheme and Repatriation Pharmaceutical Benefits Scheme.
  • $2.1 billion over five years from 2025–26, including $1.8 billion for Medicare Urgent Care Clinics and $119.3 million to extend the Practice Incentives Program Quality Improvement Incentive.
  • $2.0 billion over five years for national services and enabling supports under the Thriving Kids program alongside Australian state and territory Governments.
  • $1.7 billion over five years from 2025–26 to support the National Disability Insurance Scheme, including funding for the NDIA, the Fraud Fusion Taskforce, and mandatory registration of high-risk providers.
  • $1.4 billion over four years to improve access for seniors to home care through the Support at Home program by bringing forward program places.
  • $793.7 million over five years from 2025–26 to improve outcomes for First Nations people under the National Agreement on Closing the Gap.
  • $590.7 million over five years from 2025–26 to improve access to medicines, vaccines and health technologies, including $449.3 million to place the RSV vaccine Arexvy® on the National Immunisation Program.
  • $488.2 million over five years from 2025–26 to improve preventive health, including extended adult public dental services and the National Bowel Cancer Screening Program.
  • $308.6 million over five years from 2025–26 to support women and children leaving violence and strengthen frontline services, including the First Nations-led National Plan to End Family, Domestic and Sexual Violence.
  • $112.7 million over five years from 2025–26 to address gambling harm, including $22.6 million for the implementation of advertising reform, enforcement action and consumer protections against harmful online lottery products.
Further reading

🏠 Housing, Homelessness and Cities

The key focus within housing is funding to accelerate infrastructure that supports the delivery of new homes, including measures for vulnerable groups in social housing and maintaining restrictions on foreign ownership of established dwellings.

Key measures
  • $2.1 billion over five years from 2025–26 to support housing supply and research through the Housing Support Program – Local Infrastructure Fund and the delivery of housing-enabling infrastructure.
  • $185 million in reduced tax receipts over five years from 2025–26 from an extension of the temporary ban on foreign purchases of established residential property to 30 June 2029.
  • $59.4 million over four years to support community housing providers in providing additional social housing support for over 4,000 eligible young people aged 16–24 on Youth Allowance or ABSTUDY.
  • $47.5 million over four years for Treasury and the ATO to streamline Australia’s foreign investment framework, including faster approvals for low-risk applications, fewer conditions on approvals, and reforms to foreign investment laws and registers.
Further reading

🚆 Infrastructure, Transport, Regional Development, Communications, Sports and the Arts

Investment continues in national connectivity through rail, aviation, maritime, and major highway infrastructure. Funding underpins economic growth and infrastructure support in urban and regional Australia, while increasing transport capacity through greater freight volumes via rail and maritime transport. 

Key measures
  • $8.6 billion over 11 years from 2025–26 for road and rail infrastructure, including $3.8 billion for the Suburban Rail Loop and $1.8 billion for the Australian Rail Track Corporation’s interstate rail network. 
  • $1.7 billion over nine years for new Infrastructure Investment Program projects, including $659.6 million over three years from 2025–26 for the Newcastle to Sydney High Speed Rail Project, $812.5 million for the Bruce Highway Upgrade and $50 million for the Sydney to Canberra Rail Corridor Upgrade.
  • $841.7 million over four years to support development across urban and regional Australia, including $781.6 million for the Thriving Suburbs program and the Growing Regions programs. 
  • $600 million in 2026–27 for Airservices Australia to support the continued provision of critical air navigation. 
  • $55 million as part of the National Security plan in 2026–27, to deliver the Transport Resilience and Capacity Kickstart pilot program to incentivise increased freight volumes by rail and maritime transport.
  • $100 million over the forward estimates for competition and consumer protection, including $6.6 million over three years for online marketplace reforms and the introduction of standards for e-bikes and nationally consistent requirements for all e-micromobility devices.
  • $91.7 million over the forward estimates to support transport priorities, including $47.1 million to continue developing a Maritime Single Window platform and the establishment of a digital portal for international maritime regulatory reporting.
  • $23 million over three years to support the Australian National Maritime Museum, the National Film and Sound Archive of Australia and the Museum of Australian Democracy. 
  • $14.3 million over the forward estimates for the Department of Home Affairs for cargo monitoring and regulatory fit-out requirements at Western Sydney International (Nancy Bird Walton) Airport.
  • $8.6 million over the forward estimates to prevent SMS scams through the SMS Sender ID Register from 2026–27.
  • $4.5 million over the forward estimates for the ACCC to continue monitoring competitiveness in the domestic airline sector and $1.7 million in 2026–27 to continue the Remote Air Services Subsidy Scheme.
Further reading

💼 Employment and Workplace Relations | Education

While not a major focus for the Budget, the Government has provided additional funding for standard service improvements across several areas and additional early learning spaces. It has also achieved major savings through increased compliance and enforcement measures.

Key measures
  • $316.1 million over five years from 2025–26 for improvements to the employment services system and to increase resourcing for the National Customer Service Line.
  • $54.8 million in 2026–27 to the Inclusion Support Program to increase capacity in early childhood education and care services and to improve inclusion for children with additional needs.
  • $36.7 million over four years from 2026–27 in ongoing funding for Jobs and Skills Australia and the Australian Skills Quality Authority.
  • $26.1 million over four years from 2026–27 to support the Online National Assessment Platform and continue national testing of NAPLAN.
  • $11.2 million over two years from 2026–27, including continued funding for the Administrator of the CFMEU and to fast-track accreditation of residential builders under the Work Health and Safety Accreditation Scheme.
  • $9.4 million over four years from 2026–27 to allow the Tertiary Education Quality and Standards Agency to implement stronger enforcement and monitoring powers.
  • Savings of $472.1 million over four years from 2026–27 through increased compliance activities, including introducing controls to reduce inaccurate claiming and by ceasing undersubscribed student loans.
  • Savings of $33.2 million over three years from 2027–28 through a levy for the National Student Ombudsman on all higher education providers.

🏭 Industry, Science and Resources

Continued support for the long-term sustainability of the CSIRO and investment in critical minerals, heavy industry and manufacturing are key industry portfolio priorities.

Key measures
  • $387.4 million over four years to support the Commonwealth Scientific and Industrial Research Organisation (CSIRO), with $38.0 million per year ongoing.  
  • $273 million over four years for the National Measurement Institute to sustain essential measurement capability, including an uplift of ICT capabilities. 
  • $266.2 million in savings over five years from 2025–26 by redirecting uncommitted grant funding in the Industry, Science and Resources portfolio.  
  • $222.6 million over two years from 2025–26 to Whyalla Steelworks during administration.  
  • $173.3 million over five years from 2025–26 to support the stockpiling of critical minerals and the operation of the Critical Minerals Strategic Reserve. 
  • $102.8 million over four years to increase access to STEM Discovery in Western Australia, including the construction of a new, upgraded Scitech Discovery Centre in Perth and the expansion of Questacon’s Library Travelling Exhibits program to Western Australia. 
  • $50 million in 2029–30 to close the energy price gap for green aluminium at the Boyne Smelter. 
  • $21.7 million over two years for the Australian Space Agency.  
Further reading

🌱 Climate Change, Energy, the Environment and Water | Agriculture, Fisheries and Forestry

The National Fuel Security Plan is the centrepiece measure for the portfolio and includes measures to secure fuel and fertiliser supplies in response to unprecedented energy supply challenges. Funding has also been provided to accelerate environmental approvals, while achieving savings across the Agriculture, Fisheries and Forestry portfolio and from the Future Made in Australia scheme.

Key measures
  • $11.9 billion over five years from 2025–26 to implement the National Fuel Security Plan, including the establishment of a Fuel and Fertiliser Security Facility and an Australian Fuel Security Reserve.
  • $143.2 million over five years from 2025–26 to support the energy transition, with $97.2 million allocated towards continuing to roll out the National Consumer Energy Resources Roadmap.
  • $105.9 million over four years to streamline and accelerate approval processes for the Department of Climate Change, Energy, the Environment and Water, and the National Environmental Protection Agency.
  • $77.1 million over four years to support international agricultural engagement and continued access to major export markets.
  • $35.5 million over four years to implement a Domestic Gas Reservation Mechanism.
  • $2.2 billion in savings over 14 years from 2025–26 through redirecting funding, including from the ‘Future Made in Australia – Making Australia a Renewable Energy Superpower’ scheme and other measures.
  • $191.6 million in savings from uncommitted grant funding from programs such as the Future Drought Fund, Pest and Disease Preparedness and Response, Wine Tourism and Cellar Door, Agriculture and Land Sectors, among others. 
Further reading

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