The Budget 2026 live updates: Chalmers to unveil ‘responsible and ambitious’ Budget targeting housing crisis

Anthony Albanese and Jim Chalmers have confirmed they are changing tax breaks for property investors in the Budget that will be released later tonight, breaking promises made a year ago to leave them untouched.

The Prime Minister and Treasurer, along with Finance Minister Katy Gallagher, have released a video on social media announcing the changes.

However, the finer details will only be revealed when Dr Chalmers delivers his Budget speech at 7.30pm.

“Buying your first home shouldn’t feel impossible. But right now, too many young people feel locked out of the housing market. Tonight, we’re changing Australia’s tax system to level the playing field for them,” the trio say in the video.

The move on capital gains tax discounts and negative gearing has been widely foreshadowed, but ministers refused to confirm until now that it was happening.

However, they said that if they did change the government’s position, they would explain why it was needed.

Read the full story.

Prime Minister Anthony Albanese says the Budget will “shield Australians from the worst” of a global fuel crisis, while setting the country up to emerge “stronger on the other side”.

“Our budget tonight will build on everything that Australia is doing to shield Australians from the worst of the global fuel crisis,” he said.

“But also to ensure that we come out the other side a stronger, fairer and more resilient economy.”

He said the government had been preparing for the economic fallout from international conflict.

“We said that the longer that the war goes on, the more serious the economic impact will be… we are shielding Australians from the worst, and so far we have made a positive difference.”

Mr Albanese pointed to measures already rolled out to ease pressure.

“The fuel excise cut is easing pressure, and the release of some fuel reserves has helped distribution, especially in the regions.”

He also highlighted efforts to secure supply through international engagement.

“We’re constantly engaging with our trading partners… extra cargoes of shiploads of fuel and fertiliser, hundreds of millions of litres of diesel are coming to Australia.”

He said the focus was not just on managing the current crisis, but future-proofing the economy.

“All we can do is to put in place every measure at our disposal to protect Australia’s national interests… getting Australia through this crisis, but doing it in a way so that we’re stronger on the other side.”

Prime Minister Anthony Albanese has taken aim at the opposition benches during a fiery Question Time exchange, as he was repeatedly interrupted while defending the Government’s Budget.

“I think the joke was on you on Saturday,” he said, in a swipe linked to One Nation’s result in the seat of Farrer over the weekend, as shouting erupted across the chamber.

With the Speaker calling for order, Mr Albanese pushed on over the noise.

“The worse they’re going, the louder they get,” he said.

The Prime Minister used the moment to pivot back to the government’s economic message ahead of the Budget.

“Tonight’s budget will deliver reform, will deliver resilience, will be the budget that Australia needs in 2026.”

He also pointed to global pressures shaping the government’s approach.

“We have been working through the global fuel crisis that has been imposed on us… delivering for Australians, and tonight’s budget will do just that again.”

Opposition Leader Angus Taylor has opened Question Time with a direct attack on Anthony Albanese, accusing the government of preparing to break a key election promise with new taxes ahead of the Budget.

“My question is to the prime minister. The prime minister has said, quote, ‘My word is my bond. I’ve always been a man of my word… when you go to an election and you make commitments, you should stick to them.’ Yet reports in all major newspapers confirm that the government is about to impose new taxes on housing, housing savings, small businesses and farmers. Why should Australians ever trust another commitment this Labor government makes?”

The Prime Minister responded by pointing to what will be delivered in the Budget, rather than directly addressing the reports.

“Tonight’s budget will confirm indeed that we’re cutting taxes this year and next… We promised a $1000 instant tax deduction, and tonight’s budget will fulfil that helping low and middle income earners,” Mr Albanese said.

He also highlighted major spending commitments.

“We promised to strengthen Medicare, and tonight’s budget will provide an additional $25 billion for hospitals… cheaper medicines… support for Medicare mental health clinics as well.”

Mr Taylor later doubled down, returning to the same line of attack.

“The Prime Minister has said for the 50th time that he would not impose new taxes on Australian homes and savings. All major newspapers report that the Prime Minister is about to do the exact opposite. Why should Australians ever trust another commitment this Labor government makes?”

Albanese again avoided confirming any new housing taxes, instead turning the focus back on the Coalition.

“There was a committee report commissioned by the Greens, the Liberals and the Nationals, who asked for there to be a full public inquiry into capital gains taxation. That is something that was initiated by those opposite and something that we voted against”.

Treasurer Jim Chalmers is doing it again.

On Tuesday morning, the day of what looks like the most consequential Budget of his career, Dr Chalmers played a trick he likes to use to make the government sound more disciplined.

“The Budget will be about $45 billion stronger than it was in the mid-year update in December, and that’s because we found more than the usual amount of savings, $64 billion in savings,” he said on the ABC’s AM program.

By $64 billion in savings, Dr Chalmers is referring to spending cuts, which are considered virtuous for a government running deficits for the foreseeable future.

The figure is bogus. We know because last Friday Finance Minister Katy Gallagher promised “$64 billion in reprioritisations and savings”.

The distinction is crucial. Reprioritisation is political speak for taking money from one area and allocating it to another. It saves not a cent.

Read more.

Big changes ahead for capital gains tax and negative gearing may have dominated the pre-Budget headlines, but a new survey released just hours before Treasurer Jim Chalmers stands up in Parliament has revealed what voters really want.

Cheaper groceries.

Almost seven in 10 people surveyed by iSelect ranked it as the most important Budget measure for households already feeling the strain of higher fuel prices and a third-straight interest rate hike from the Reserve Bank.

Energy bill relief/rebates came in a close second, with 64 per cent of respondents calling for extra help.

The US and Israel’s ongoing war with Iran has put the squeeze on global oil supply, driving up costs for grocery suppliers who have been pleading with supermarket giants such as Coles and Woolworths to lift prices to recoup the extra expense.

The nation’s two biggest grocers aren’t the only ones struggling to keep costs down in the face on ongoing fuel strain.

Read more.

Prime Minister Anthony Albanese has told Australians to prepare for a “big reform Budget” tonight as his Government stands ready to deliver controversial changes.

“What you’ll see is some changes tonight in the way that the tax system works, but also in driving supply,” Mr Albanese told Nova Adelaide on Tuesday morning.

“This is a big reform Budget, building resilience in our economy, but also really tackling some issues that have been kicked down the road essentially for too long.

“The dream of home ownership is becoming so difficult for young Australians in particular, and they raise it with me, but so do their parents and grandparents.”

The Government is also highly conscious that this Budget lands against a backdrop of a populist, anti-establishment wave sweeping Australian politics, which manifested in One Nation’s huge win in the Farrer by-election at the weekend.

Jim Chalmers says he understood there were many people with “very real concerns” about the state of the housing market, or who felt they were unable to get a toehold in the economy more broadly.

“(The Budget) is not a political document or a political strategy, it’s an economic plan – very comprehensive economic plan – to deal with some of these economic issues, but at the same time, it will respond to a lot of the pressures and anxieties that people are feeling, which is driving them to consider some of the parties outside the mainstream,” he said.

“The Australian Labor Party is the last one standing in the sensible centre of Australian politics, but we’re not standing still.”

Treasurer Jim Chalmers also used his walk-in to Parliament House this Budget morning to continue making the argument for why changes are needed to rebalance the housing market in favour of first-home buyers, rather than property investors.

He said the Budget would seek to deal with “major challenges” that had been lingering in the economy.

“These are not the first reforms that we have undertaken, it’s been a reforming government, but I think the pace of change will pick up tonight and that’s because we are taking on a number of very important policy issues,” he said.

“That always involves and invites an element of political risk. It will unleash the usual scare campaigns full of lies – people who want to defend the current arrangements.”

He said those who defended the current tax setting and the housing market were avoiding dealing with the substantive issue, that “too many Australians are locked out of the housing market”.

“It’s not about making judgments of people who’ve done well. We want more people to do well,” he said.

Treasurer Jim Chalmers has arrived at Parliament House ready to hand down his fifth Federal Budget.

“Tonight’s Budget will be our most responsible and ambitious,” Dr Chalmers said as he arrived with a huge smile.

“There are five major packages,” the Treasurer said, detailing that they were around fuel, housing, productivity, tax reform and savings.

“The budget will be about helping people through this global oil shock”, he said, adding it would also strengthen Australia’s resilience for the future.