The war in the Middle East has caused a global energy crisis, leading to last-minute budget changes.

Interest rates and inflation are rising, making it challenging for the government to balance priorities.

This budget is highly anticipated and could be one of the most interesting in decades, says Westpac's Luci Ellis.

Here are some key policies already announced before the budget speech.

Jump to a specific budget measure:

Housing policy includes changes to negative gearing and capital gains tax.

Housing has been a central issue in Australia's debate about fairness between generations.

The 2025 federal election marked a significant shift in Australian politics.

It was the first election where younger voters outnumbered baby boomers in every state and territory.

The budget won't be dull, with Jim Chalmers's tax reforms creating a stir and potentially closing the generation gap.

The Albanese government is willing to tackle tax arrangements for housing, considering demographic changes.

Negative gearing and capital gains tax are being reformed to encourage new housing investment.

The government will reform tax rules to support new housing supply, not just existing homes.

Details on 'grandfathering' current property investors and the transition timeline will be announced tonight.

The government has allocated $2 billion for infrastructure to support 65,000 new homes over a decade.

There may be changes to how discretionary trusts are taxed.

A national fuel security package is included in the budget.

The package aims to improve Australia's fuel security, shielded from the war in Iran's long-term consequences.

Refiners and importers must store emergency fuel supplies, with proposed increases to these stockpiles.

Australia's mandatory petrol stockpiles will increase, as will diesel and jet fuel stockpiles.

Defence spending will increase to 3% of GDP by 2033.

An additional $53 billion will be spent on defence over the next decade.

The defence spending increase includes projects like the Henderson shipyards upgrade and drone technology investments.

The budget includes a 'productivity package' to reverse Australia's low productivity performance.

The government aims to cut business compliance costs by $10 billion annually.

A $20,000 instant asset write-off for small businesses will be made permanent.

Fees for accessing Australian standards for construction will be scrapped, and record-keeping will be simplified.

The government plans to reform the migration system, including changes to the points test and recognition of overseas qualifications.

The budget will feature changes to capital gains tax, negative gearing, and trust fund taxation.

The capital gains tax discount may be adjusted, and negative gearing could be abolished or capped.

The government will wind back the tax discount for electric vehicles bought under a novated lease.

More than $10 billion will be spent on fuel security, including loans and equity for fuel supply and an onshore fuel reserve.

A one-off tax cut of up to $300 is possible for workers this financial year.

Health Minister Mark Butler announced $15 billion in cuts to the NDIS over four years to address ballooning costs.

The NDIS changes aim to reduce the number of people on the scheme from 760,000 to 600,000 by the end of the decade.

An extra $53 billion will be spent on defence to lift military spending to 3% of GDP.

The spending will focus on infrastructure like drones and long-range missiles.

About 6.2 million Australians can claim an instant $1,000 tax deduction without receipts.

The $1,000 instant tax deduction will apply from the 2026-27 income year, simplifying tax returns.

The federal government will spend $74 million on a national Counter Terrorism Online Centre.

Cuts to the National Disability Insurance Scheme (NDIS) are planned to address ballooning costs.

Initial modelling shows the NDIS changes will reduce the number of people on the scheme.

The government intends to reduce NDIS costs by overhauling eligibility rules.

A tax deduction for workers at tax time will allow $1,000 to be claimed without receipts.

The measure aims to reduce paperwork for workers at tax time.

Taxpayers can claim up to $300 for work-related expenses without a receipt.

The $1,000 instant tax deduction will apply from the 2026-27 income year, benefiting 6.2 million workers.

The government will spend an extra $3.8 billion on Victoria's Suburban Rail Loop project.

Prime Minister Anthony Albanese announced the funding, which will help deliver the project's first phase.

The extra federal funds will support the construction of a 26-kilometre underground rail line in Melbourne.

The popular tax discount for electric vehicles will be wound back next year.

From April 2027, electric vehicles costing over $75,000 will be taxed at 75% of the usual FBT rate.

From April 2029, all electric vehicles will be taxed at the 75% payable FBT rate.

The government has not abandoned the tax discount for electric vehicles entirely.

Treasury has released a consultation paper on possible changes to the superannuation 'performance test'.

The performance test was introduced in 2021 to protect Australians' retirement savings.

The test may be discouraging investment in emerging or alternative asset classes, such as renewable energy projects.

The federal opposition says changes to the performance test would help the government 'rig' investment rules.

The consultation period ends on June 19, feeding into debates on housing, renewable energy, and productivity.

Related stories and topics include budget, defence forces, and government and politics.

The budget will have implications for various sectors, including housing, migration, and tax policy.