The Iranian war has also affected the Australian 2026 budget.

Amidst the war launched by Donald Trump against Iran, impacting global fuel supply, and severe inflation, the Australian government has presented its 2026 Federal Budget. This budget has had diverse impacts on various segments of society, with some benefiting while others face disadvantages.

This budget proposes several reliefs for ordinary taxpayers. It has been decided to provide a $250 tax relief for over 12.5 million Australians starting from the 2027-28 income year, and to reduce the 15% tax rate for those earning between $18,201 and $45,000 to 14% from July 2027. Additionally, from the 2026-27 year, taxpayers will have the opportunity to claim an instant tax deduction of $1,000 without submitting receipts. While the number of public sector employees has been increased to 217,256, job cuts will simultaneously occur in agencies such as the Australian Competition and Consumer Commission (ACCC) and the National Disability Insurance Agency (NDIA).

A significant investment has been allocated to the science and technology sector, with $273 million for the National Measurement Institute, $387.4 million for CSIRO, and $21.7 million for the Australian Space Agency. Commercial television and radio networks Nine, Seven, and Ten have been granted a $111.3 million relief by exempting them from commercial broadcasting taxes until June 2028, and the Associated Press has received $15 million. Meanwhile, $20 million has been allocated to combat illegal tobacco trade, but the government expects tobacco tax revenue to fall by $1.2 billion due to the growth of illegal trade.

Due to capital gains taxes and other tax reforms imposed on property investors, approximately 75,000 first-time homebuyers have gained the opportunity to enter the housing market. However, these reforms do not provide relief for renters, and weekly rents are expected to increase by about $2. It has also become apparent that government-backed housing schemes are not providing as much lending as anticipated.

Strict tax policies have been introduced for wealthy families in this budget, with a minimum tax of 30% to be levied on their discretionary trusts starting from 2028. This is estimated to generate an additional $4.5 billion in annual revenue for the government. The fee for international departing passengers has been raised from $70 to $80 starting January 1, 2027, and $6.6 million has been allocated to introduce strict laws against sellers of substandard e-bikes.

Although $99.6 million has been allocated for environmental conservation efforts, experts believe it is insufficient to protect endangered species. Furthermore, immigration laws have been tightened, making it more difficult for older and low-skilled migrants to obtain permanent visas. Unemployment is also projected to rise to 4.5%, its highest level since the pandemic, meaning approximately 50,000 more Australians are at risk of losing their jobs in the coming year.