What’s known so far about the federal budget
Jim Chalmers is putting the finishing touches on his fifth federal budget, with some of the measures starting to be revealed.
* The government has already flagged large cuts to the NDIS, with savings of $15 billion to be rolled out over the next four years. It will involve booting 160,000 people off the disability scheme
* An extra $53 billion will be spent on defence over the next decade in order to lift military spending to three per cent of Australia’s GDP. The spending will be focus on infrastructure such as drones and long-range missiles
* A cut to the fuel excise has already been accounted for in the budget, which cuts 26 cents off a litre of petrol or diesel. It will be in effect until June 30, but a decision has not been made on whether it will be extended
* Speculation has increased an income offset of between $200 and $300 will be rolled out to everyone who pays tax, but the measure has not been publicly announced
* The budget is widely tipped to make changes to negative gearing, capital gains tax discounts and how trust funds are taxed. The prime minister and treasurer have previously said the budget will be about intergenerational fairness
* Australians over 65 will no longer pay discounted rebates for private health insurance, bringing it into line with other age groups. Older Australians will have to pay more than $200 a year extra for their cover
* Workers will be able to claim a $1000 tax deduction without the need for receipts for the 2026/27 financial year
* Tax cuts of $268 for those earning more than $45,000 will come into effect from July
* Tax breaks for electric vehicles will also be phased out. Incentives allowing employers to avoid fringe benefits tax on EVs under $91,000 through a novated lease will be changed to a 25 per cent discount
