FY27 Budget Digest — Budget Smarts

FY27 DEFICIT·$28.3B GDP GROWTH·1.75% INFLATION PEAK·~5%MID-2026 WORKERS WITH TAX CUTS·13M DEFENCE BOOST·+$53B OVER 10 YRS WORKER OFFSET·+$250/YR 5-YR FISCAL IMPROVEMENT·$44.8B NDIS PARTICIPANTS·−160,000 BY 2030 TAX-FREE THRESHOLD·↑ TO $19,985 FY27 DEFICIT·$28.3B GDP GROWTH·1.75% INFLATION PEAK·~5%MID-2026 WORKERS WITH TAX CUTS·13M DEFENCE BOOST·+$53B OVER 10 YRS WORKER OFFSET·+$250/YR 5-YR FISCAL IMPROVEMENT·$44.8B NDIS PARTICIPANTS·−160,000 BY 2030 TAX-FREE THRESHOLD·↑ TO $19,985

Treasurer Jim Chalmers — Budget Overview

Described as "the most important and ambitious budget in decades", the 2026–27 Budget focuses on housing reform, tax relief for workers, energy security and managing inflationary pressures against a backdrop of global economic uncertainty.

Cash Deficit

$28.3B

↑ $8.5B better than forecast

GDP Growth

1.75%

↓ down 0.5% from prior forecast

Inflation Peak

~5%

mid-2026 · above RBA 2–3% target

5-Year Improvement

$44.8B

cumulative fiscal improvement

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Income (approx.)

Employment

Owns Home?

Investment Prop?

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