Totally new look or more of the same? The Federal Budget's winners and losers
From first home buyers and doctors' patients, trust fund holders to the unemployed, the 2026–27 Federal Budget hands some Australians a fresh new look while leaving others wondering whether they've just paid top dollar for a basic trim.
For the average Australian, life after a federal budget is a little like life after a visit to the hairdresser.
A few people might come out with a vastly improved look, but for the majority it’s a neat trim that quickly leaves you pretty much where you’d been all along.
Treasurer Jim Chalmers had touted the 2026–27 Budget as a radical new look – “my most ambitious yet” – and while he couldn’t be said to have gone from mousey brown short back and sides to platinum blonde dreadlocks, there is definitely a noticeable colour tint evident in the latest styling.
Most Australians looking in their own financial mirror will see the much the same reflection looking back at them.
Some will be looking for a new hair stylist or barber and a few will be thinking they’ve spruced themselves up quite nicely.
Here are the winners and losers from the latest federal budget.
Ready for the catwalk runway
Young Australians: The centrepiece of the Labor Government’s Budget is the implementation of major investment tax reforms aimed at enabling younger individuals to enter the housing market. Changes to the capital gains tax discounts and negative gearing are intended to help an estimated 75,000 Australians into their first home.
A total of $59.4m over four years will also provide states and territories with funding to supplement rental income for community housing providers supporting young people. This will support stable housing for over 4,000 young people aged 16 to 24 who are at risk of or experiencing homelessness.
Happy with the new look
The unwell: The Federal Government will invest an additional $1.8 billion over five years from 2025-26, alongside ongoing funding of $525.6 million annually from 2030-31, to expand Medicare Urgent Care Clinics. The clinics, a flagship health policy of the Government, provide walk-in, bulk-billed urgent care services aimed at easing pressure on hospital emergency departments.
The Budget also allocates $5.9 billion over five years to reduce the cost of medicines listed on the Pharmaceutical Benefits Scheme, benefiting Australians living with conditions including cystic fibrosis, chronic kidney disease and various cancers.
In addition, $2.8 million over two years will be provided to continue support for Endometriosis and Pelvic Pain Clinics, which deliver specialist care for women experiencing endometriosis, pelvic pain, perimenopause and menopause.
My usual style, please
Taxpayers: Nobody is going to feel too much richer from the tax changes announced Tuesday.
The Budget includes a new “earned income offset”, which will provide Australian workers with a $250 tax benefit from next financial year. Previously announced personal income tax changes from last year’s Budget will also take effect, with the lowest tax bracket for Australians earning between $18,201 and $45,000 reducing from 16 per cent to 15 per cent. The change is expected to save workers earning $45,000 annually around $268 in tax.
In addition, the Medicare levy threshold will be retrospectively increased for the current financial year. The threshold for singles will rise from $27,222 to $28,011, while the threshold for couples will increase from $45,907 to $47,238.
Not happy with the fringe
The wealthy: The Federal Government will introduce a minimum 30 per cent tax rate on income distributed through discretionary trusts from 2028, targeting arrangements commonly used to minimise tax liabilities.
Discretionary trusts have increasingly been used by wealthy Australians to distribute income to family members or beneficiaries paying lower tax rates. The Government estimates the reform will generate an additional $4.5 billion annually in revenue.
According to Treasury analysis, the wealthiest 10 per cent of Australians hold the overwhelming majority of private trust wealth, meaning the changes are expected to predominantly affect higher-income households.
Looking for a new salon
The unemployed: Despite being the supposed party for the dispossessed, those on the bottom economic rung won’t take any joy from the Budget or employment rate forecasts.
Treasury forecasts Australia’s unemployment rate will rise to 4.5 per cent over the next year, the highest level since the pandemic, with almost 50,000 additional Australians expected to be seeking work.
Despite growing cost-of-living pressures, the Federal Government has not increased the JobSeeker payment, which currently provides a maximum of around $58 per day for a single person without children.
Unemployed Australians will also be excluded from one of the Budget’s key cost-of-living measures, a $250 tax rebate available only to workers, which is scheduled to be paid from 2028.
