Australia’s 2026 federal budget to be unveiled by Treasurer Jim Chalmers amid housing market concerns
Treasurer Jim Chalmers is scheduled to deliver the 2026 Australian federal budget speech tonight, May 11, according to live updates from The Guardian. The budget will address a housing market that the treasurer described as “not working” and a tax system he called “out of whack,” with expectations of new measures to boost affordability and fiscal sustainability.
Australia’s economy has been grappling with rising property prices and stagnant wages since the pandemic, prompting a series of policy debates about first‑home buyer incentives and tax reforms. The upcoming budget follows a series of state‑level initiatives that have had mixed results, and the federal government faces pressure from both business groups and social advocates.
The Guardian’s live blog notes that Chalmers is likely to introduce a “home‑buyers’ tax credit” and tighten rules around negative gearing, while also outlining a modest increase in the corporate tax rate to fund infrastructure spending. Sources close to the Treasury, speaking on condition of anonymity, say the budget will aim to balance a $45 billion deficit with projected growth of 2.5 percent for the fiscal year.
Economic analysts from the Reserve Bank of Australia and the Grattan Institute have warned that aggressive tax changes could dampen investment, but also praised the focus on housing as a long‑term stability factor. Professor Linda McCarthy of the University of Sydney remarked, “If the government can deliver targeted relief without destabilising the broader fiscal outlook, it could be a win‑win for middle‑income Australians.”
The budget will be scrutinised in the coming weeks as the House of Representatives debates the proposed measures. Key dates include the first parliamentary reading on May 14 and a Senate committee hearing on the housing reforms on May 20. Watch for potential amendments that could reshape the tax credit’s eligibility criteria.