Federal Budget 2026-27: Impact on Queensland

Federal funding for water, sewerage and road connections to new housing developments. Queensland can access this if it commits to faster planning approvals, releasing more land for housing, and adopting national construction code reforms.

Funding commitment; requires state agreement

For investment property owners: the 50% CGT discount is replaced by cost-base indexation (which only taxes gains above inflation) plus a 30% minimum tax on net capital gains. Gains arising before 1 July 2027 keep the old 50% discount. Negative gearing on established dwellings is restricted — losses can only offset rental income or residential property capital gains, with excess losses carried forward. New-build properties are fully exempt from both changes. Income support recipients (including Age Pension) are exempt from the minimum tax.

Requires federal legislation; not yet introduced. Requires Senate passage.

Foreign buyers remain locked out of purchasing existing homes anywhere in Australia (including Queensland) until at least mid-2029. Does not affect new-build purchases by foreign buyers.

Requires amendment to foreign investment rules

Additional community housing places for young people transitioning out of foster care or homelessness services.

Appropriation

Petrol and diesel 32 cents per litre cheaper at the bowser until 30 June 2026. For a typical Queensland household using around 30–40 litres per week, saves approximately $125–165 over the 13-week period. After 30 June, prices return to the previous excise rate.

Commenced. Expires automatically.

Every working Australian taxpayer receives a $250 annual tax offset from their 2027-28 tax return. Raises the effective tax-free threshold by nearly $1,800 to $19,985. You won’t see this in your pay until your 2027-28 tax return is lodged (from July 2028).

Requires federal legislation. Not yet introduced.

If you earn under $28,011 as a single person (up from $27,222), you no longer pay the 2% Medicare levy. Family threshold rises to $47,238. Already in effect.

Commenced

If you're an Australian tax resident who earns income from work, you can claim up to $1,000 in work-related deductions without needing to itemise or keep receipts. If your actual expenses exceed $1,000, you can still claim the higher amount in the usual way. Charitable donations and union fees are separate and can still be claimed on top.

Requires federal legislation. Election commitment.

If you run a small business with turnover under $10 million, you can immediately deduct the full cost of any asset under $20,000 (tools, equipment, vehicles, computers) in the year you buy it, rather than depreciating it over several years. This is now permanent — previously extended year-by-year.

Requires federal legislation to make permanent

If you operate a family business, farm, or investment through a discretionary (family) trust, the trust will pay a minimum 30% tax on its income from 1 July 2028. Beneficiaries receive credits for tax paid by the trustee. Primary production income is excluded. A 3-year window from 1 July 2027 provides rollover relief if you want to restructure out of a trust into a company or fixed trust.

Requires federal legislation; not yet introduced. Requires Senate passage.

If you salary sacrifice an electric car under $75,000 before April 2029, you keep the full FBT exemption. After April 2029, a 25% discount replaces the 100% exemption for new arrangements. Existing arrangements under the old rules are grandfathered.

Requires federal legislation

Aims to make it easier and cheaper to see a GP. More funding for bulk-billing incentives means fewer out-of-pocket costs when you visit the doctor. Includes investment in digital health records so your GP, specialist and hospital can share your information more easily.

Appropriation; extends existing measures

Free developmental checks and early intervention for children showing signs of developmental delay or disability. Delivered through state health services. Aims to identify and support kids earlier without families needing to navigate the NDIS to get basic support.

Appropriation; delivered through states

Continues programs that catch health problems early — cancer screenings, vaccinations, and community health interventions — before they become expensive hospital admissions.

Appropriation

If you or a family member receives home care, personal care services (help with showering, dressing, meal preparation) become a standard inclusion in all package levels. Previously you needed a higher-level package to access these services, which meant longer wait times.

Appropriation

Continues health services at Queensland Health facilities for Papua New Guinean nationals travelling through the Torres Strait for traditional activities.

Appropriation

If you or a family member is an NDIS participant, your plan will transition to a new model with needs-based budgets rather than line-item plans. A new Foundational Supports model provides support for people with disability who don’t meet NDIS eligibility, delivered through states. Functional capacity assessments replace current planning processes.

NDIS reform legislation passed 2024. Implementation ongoing.

New aged care quality standards take effect, with increased monitoring of residential aged care providers. More funding for the Aged Care Quality and Safety Commission to investigate complaints.

Appropriation; builds on Aged Care Act 2024

The Boyne Island aluminium smelter near Gladstone (approximately 1,000 direct jobs) receives federal funding to bridge the cost gap between current coal-fired energy and renewable energy, keeping the smelter operating through the energy transition.

Negotiations ongoing; partial funding in Contingency Reserve

Water infrastructure for regional and remote Queensland communities, including First Nations communities. Supports agricultural water security and drought resilience.

Existing commitment; indicative allocations subject to agreement signing

New recycling facilities in Queensland so that waste paper, plastic, glass and tyres previously shipped overseas for processing can be handled domestically. Supports local recycling jobs and reduces landfill.

Appropriation

Continued eradication program for yellow crazy ants in the Wet Tropics World Heritage Area near Cairns, protecting native wildlife and residential areas.

Appropriation

Protects Queensland’s World Heritage-listed sites (Great Barrier Reef, Wet Tropics, Fraser Island) from feral animals, weeds, and changed fire regimes.

Appropriation

LNG producers (including those at Gladstone’s Curtis Island) will be required to reserve the equivalent of 20% of their gas exports for the domestic market. Intended to increase domestic gas supply and put downward pressure on east-coast gas prices for households and manufacturers.

Requires federal legislation; implementation funding appropriated

Parents concerned about their child’s development can access free assessment and early intervention services through state health systems, without needing an NDIS application first.

Appropriation; delivered through states

More crisis accommodation, legal assistance, and support services for women and children leaving violent relationships. $41M per year flows to states for frontline services.

Appropriation

Stronger protections for parents in private child support collection arrangements. Closes loopholes that allowed ex-partners to hide income or weaponise the system to avoid payments.

Appropriation; some elements require legislative amendment

Queensland’s firearms registry system upgraded and linked to a national register, improving police ability to track firearms across state borders.

Appropriation

$14M in 2026-27 boosts state enforcement against illegal tobacco shops and vape sellers. Funds transport, storage and disposal of seized products.

Appropriation

New national cell broadcast emergency messaging system and continued mobile broadband capability for disaster response in regional areas.

Appropriation

Federal contribution to Olympic venue construction across South East Queensland. These are legacy venues intended for ongoing community use after the Games. This is not new money — it is the scheduled delivery of a pre-existing federal commitment first agreed in 2018.

Committed under intergovernmental agreement

Two major construction projects: a major expansion to the Cairns Marine Precinct (supporting boat-building and maritime industries), and a new Central Queensland University campus in the Cairns CBD.

Appropriation

Community sports and performance facility in Townsville.

Appropriation

Safety upgrades at crash-prone intersections and road sections across Queensland. If you drive through a black spot that gets upgraded, you benefit from reduced crash risk.

Appropriation; existing program

New and upgraded bike paths and walking paths across Australia. Queensland’s share to be determined by project applications.

Appropriation

Includes continued monitoring of domestic airline competitiveness on prices, costs and profit. Remote Air Services Subsidy continued for isolated communities.

Appropriation; includes regulatory changes