Treasurer Jim Chalmers says this budget will make the tax system fairer for young Australians.

The war in Iran and the global fuel crisis are affecting the economy, with cost-of-living issues expected to worsen.

For the latest on the 2026 budget, read our live updates.

Click the cards to see this year's budget winners and losers.

A $250 tax offset will be given to 13 million working Australians, starting in 2027-28.

People won't see this money until after July 2028, as the government wants to avoid fuelling inflation.

Only people who earn a wage or salary, not those who earn from investments, will get the tax offset.

The measure will cost $6.4 billion over four years.

A $1,000 instant tax deduction for work-related expenses will be introduced.

Australians who earn income from work can claim an instant deduction for up to $1,000 of work expenses.

About 6.2 million workers will benefit from this change, saving an average of $205.

Investors will lose some discounts in a major tax system overhaul.

Currently, Australians can get a 50% capital gains tax discount if they hold an asset for over 12 months.

A capital gain is the profit from selling assets like investment properties or shares.

This discount was meant to encourage investment, but critics say it has skewed home ownership towards investors.

The 50% discount will be replaced by an inflation-based discount.

Investors will always pay at least 30% tax on gains under a new minimum rate.

Pensioners and people on income support will be exempt from the 30% minimum rate.

The new reforms will only apply to gains made after July 1, 2027.

Investors who buy new builds can choose from the 50% CGT discount or the new settings when they sell.

The new rules will partially end an exemption for assets purchased before 1985.

Australians with old assets must now pay tax on gains made after July 1, 2027, using the new rules.

These changes will raise $3.6 billion over five years and help 75,000 Australians buy their own home.

Landlords won't be able to use negative gearing on existing properties purchased after today.

There is an exemption for new builds.

Negative gearing allows landlords to reduce their income tax by deducting rental losses.

Any investment property owned before budget night will be exempt from the changes.

Negative gearing will now be limited to new builds to incentivise more housing supply.

Investors who buy existing homes after budget night can still deduct losses against residential property income.

These changes will raise $3.6 billion over five years and help 75,000 Australians buy their own home.

The government expects these changes to increase rents by $2 a week.

The changes to capital gains tax and negative gearing will help 75,000 homes change hands from investors to first home buyers.

These measures are predicted to reduce housing supply by 35,000 homes.

The budget includes $2 billion for councils and utility companies to build infrastructure for new housing.

The money for infrastructure will support 65,000 new homes.

Foreign investors will be banned from buying existing homes for two years.

The government will spend $105.9 million to build an AI tool to help developers navigate environmental red tape.

The economy has had a rough year due to the war in Iran and the global fuel crisis.

Even before the war, inflation was rising and growth was slowing.

Headline inflation is forecast to rise to 5% in the June quarter of 2026, then drop to 2.5% by the 2027 June quarter.

These numbers assume global oil prices will drop from mid-2026 and stabilise in mid-2027.

The impacts of the conflict in the Middle East will likely linger beyond its resolution.

The impact on fuel costs will expand to other products like groceries.

Growth in the Australian economy will slow to 1.75%.

Unemployment remains low and is projected to remain stable.

The budget identifies risks to the forecast outlook, including a prolonged Middle East conflict and higher than expected inflation.

A severe Middle East conflict scenario could result in a quarter of negative growth and inflation peaking at 7.25%.

The budget forecasts slight improvements in budget deficits over the next four years.

This year's deficit is expected to be $2.8 billion lower than forecast.

The 2025-26 budget deficit has also been revised down by $8.5 billion.

There are marginal improvements in forecast deficits for 2027-28 and 2028-29.

Gross debt is still forecast to exceed $1 trillion in this budget.

The budget has taken in an unexpected $41 billion over the four-year period.

The tax take from the Petroleum Rent Resource Tax was revised up by $400 million.

Treasurer Jim Chalmers says this is a responsible budget, with most of the windfall going towards paying down debt.

The budget allows room for tax cuts in future budgets.

The government is boosting Australia's defence spending due to global uncertainty.

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

Much of the new spending is tied to major projects like the AUKUS nuclear-powered submarine program.

Defence spending will rise from 2.8% to 3% of GDP by 2033.

The government has found $5 billion in defence savings by reprioritising investment.

The RAAF's fleet of 10 C-27 Spartan aircraft will be retired earlier than planned.

The budget aims to rein in the National Disability Insurance Scheme, which is now costing $50 billion a year.

The government wants to reduce the scheme's annual growth rate from 10% to 5 or 6% long term.

Cost-saving measures include pushing 160,000 participants off the NDIS and onto state-run support programs by 2030.

The budget forecasts spending growth will drop below inflation to around 2% a year.

The changes are projected to save the budget $37.8 billion over the forward estimates.

Labor will spend $2 billion to establish the Thriving Kids program to support children with autism.

The government is cracking down on people who try to rip off taxpayer-funded services.

The National Disability Insurance Agency estimates up to 10% of payments are lost to inflated invoices or incorrect payments.

The government forecasts savings of more than $820 million over four years from Medicare and the PBS.

Labor will introduce a minimum 30% tax on discretionary trusts from July 1, 2028.

Trusts are used by families to split income and take advantage of tax-free and lower-tax thresholds.

The minimum tax will not apply to other types of trusts, such as fixed trusts and super funds.

The measure is expected to raise $4.5 billion over the next four years.

The federal government is offering tax breaks to elite rugby league players to join the PNG Chiefs.

The tax exemption will decrease receipts by $5.4 million over the next four years.

Gas companies have avoided a 25% export tax despite a social media campaign and Senate inquiry.

The Petroleum Resource Rent Tax is expected to raise less revenue than a tax on beer.

The PRRT tax take was revised up by $400 million due to higher oil prices and production volumes.

Gas companies will face more rules from July 1 next year, including a domestic gas reservation scheme.

The scheme will force east coast LNG exporters to sell 20% of their gas to the Australian market.

The government has scrapped an extra private health insurance subsidy for people aged over 65.

People aged 65 to 69 could previously claim 28% of their private insurance premiums.

The savings will be used to pay for an extra 5,000 aged care beds and at-home aged care supports.

The budget has allocated almost $450 million to fund a free RSV vaccine for Australians 75 and over.

There's money in the budget for an additional 5,000 residential aged care beds annually, starting in July 2027.

The government has reversed its decision to remove funding for some in-home aged care services.

The policy backflip is expected to cost taxpayers $1 billion over four years.

The government is restructuring the Medicare system, which has been a key focus for Labor.

Health accounts for more than 16% of total expenses in 2026-27.

A record extra $25 billion is going towards public hospitals under a new five-year funding deal.

The government will increase the Medicare levy low-income threshold, exempting about 1 million Australians from the levy.

Labor is focusing on boosting productivity, which has hit a 60-year low.

The government will slash the cost for businesses complying with government regulations by $10 billion a year.

The government will expand venture capital tax incentives to help start-ups and growing firms.

The loss carry back is expected to help up to 85,000 companies each year.

The government's productivity package includes overhauling a test used to select skilled migrants.

More than $10 billion will be spent on strengthening Australia's fuel security.

The government will increase the minimum stockholding obligation for every type of fuel by about 10 days.

Small businesses struggling through the economic crunch will get a COVID-era-style tax lifeline.

The policy is known as a loss carry back and will become a permanent fixture for companies with up to $1 billion in turnover.

The government's productivity package includes sweeteners for small business, including a $20,000 instant asset tax write-off.

The government has wound back tax discounts for electric vehicles, saving the budget $1.7 billion over four years.

The tax exemption will still apply to electric vehicles costing less than $75,000, but those above that threshold will only get a 25% discount.

Victoria will receive an additional $3.8 billion in federal funding for the Suburban Rail Loop.

The project has become a major political battleground for the state Labor government.

The funding boost comes just in time for the state election in November.

The ongoing global energy crisis means petrol will remain expensive for motorists.

The prime minister offered a temporary lifeline by halving the fuel excise, but the relief is almost over.

The discounts will disappear at the start of July, and this year's budget offers no new help for drivers facing high fuel costs.

Labor is responding to last year's antisemitic terrorist attack by pouring $604 million into measures targeting hate speech and social cohesion.

The government is investing in extra security measures, including $69 million for national security investigations teams.

The government has axed funding for the Melbourne to Brisbane Inland Rail after projections showed it would cost upwards of $45 billion.

Construction will now only be funded as far as the New South Wales town of Parkes.

The government expects a portion of the money previously committed to the project will be returned to the budget.