Federal Budget 2026 - 2027

: 15 May 2026

The Australian Government’s 2026–27 Federal Budget delivers a strong national focus on infrastructure, housing, productivity, resilience and regional connectivity — all areas of significant importance to the Logan and Redlands region.

While the Budget did not include major place-based funding announcements specifically for Logan or Redlands, a number of the national and regional investment measures align strongly with the opportunities and challenges facing our rapidly growing region.

Key themes within the Budget include:
• Housing supply and enabling infrastructure
• Productivity and economic reform
• Transport and freight connectivity
• Fuel security and supply chain resilience
• Workforce participation and skills
• Community infrastructure and regional liveability

For Logan and Redlands, the Budget reinforces the importance of sustained investment in enabling infrastructure to support one of the fastest-growing regions in South East Queensland.

The Federal Government’s new $2 billion Local Infrastructure Fund aimed at unlocking housing supply is particularly relevant for growth areas such as Yarrabilba, Greater Flagstone and broader urban growth corridors across the region. Delivering sustainable housing growth will require coordinated investment in transport, water, sewerage, digital connectivity and community infrastructure.

The Budget’s continued focus on transport infrastructure, freight resilience and supply chain productivity also highlights the growing importance of regional connectivity across South East Queensland. Investments in rail, freight and active transport infrastructure will remain critical to supporting workforce mobility, economic productivity and investment attraction.

The Budget continues investment in regional infrastructure and community programs including:
• Growing Regions Program
• Thriving Suburbs Program
• Stronger Communities Program
• Safer Local Roads and Infrastructure Program
• Active Transport Fund initiatives

The Government’s broader emphasis on fuel resilience, cleaner fuels and freight efficiency also reinforces the importance of long-term regional resilience and economic security for communities and industries across South East Queensland.

These programs and reforms present opportunities for investment-ready projects across Logan and Redlands that improve connectivity, liveability, resilience and long-term economic sustainability.

At the same time, the Budget highlights the need for continued advocacy around:
• Integrated transport connectivity
• Housing affordability and infrastructure sequencing
• Workforce and skills development
• Digital inclusion and resilience
• Community infrastructure
• Brisbane 2032 Olympic and Paralympic legacy opportunities

As South East Queensland continues to grow, ensuring regions like Logan and Redlands remain connected, investment-ready and economically resilient will be critical to supporting long-term productivity, liveability and sustainability.

At Regional Development Australia Logan and Redlands, we will continue working collaboratively with all levels of government, industry, education and community stakeholders to advocate strongly for greater investment in the region and for the infrastructure, policy settings and strategic partnerships needed to support sustainable regional growth and deliver lasting benefits for our communities.

A priority area will be meeting current and future housing growth needs in the region. The RDA will convene a regional forum later this year to bring together stakeholders to explore practical solutions to meeting the region’s growing housing demand.

For more information about the Budget please go to https://budget.gov.au/.

Budget Highlights:

The key numbers:

Underlying Cash Deficit: $31.5 billion
Total Spending: $833.2 billion (a $47.5 billion increase).
Gross Debt: Forecasted to reach $1.051 trillion.
GDP Growth: Forecasted to slow to 1.75% (down from 2.25% in 2025-26).
Inflation (CPI): Projected to ease to 2.5%
Unemployment Rate: Expected to rise to 4.5%

Key Measures:

Key budget measures

Negative gearing for new buys from now on restricted to new homes from 2027-28 onwards. For established homes losses can be used to offset other property income and can be carried forward. Shares and commercial property exempt from the change.
The 50% capital gains tax discount to be replaced by the taxation of real gains from 2027-28 for all assets (with a likely exception for tech and startups) purchased from now and to face a minimum tax rate of 30%. CGT on existing assets to be assessed using a proportionate mix of the old and new tax models based on holding years. CGT on new builds given a choice of the old and new models.
A minimum tax on discretionary trust distributions of 30%.
A phased reduction of the EV fringe benefit tax break.
Implementation of election promises with a 1% cut to the bottom tax rate (saving $5.15/week) & the $1000 standard tax deduction.
A $250 income tax offset for all salaried workers for 2027-28.
$20,000 instant asset write off for small business made permanent.
Tax loss carry back so small biz can offset losses against past profits.
The R&D tax credit expanded.
Numerous moves to cut red tape with the aim of cutting regulatory costs by $10bn a year.
Incentives & deals with states for productivity enhancing reforms.
$2bn over 4 years to provide critical housing related infrastructure and $500m to speed up environmental approvals.
$14bn in increased defence spending, $3.8bn for Melb rail project.
$10.7bn “off-budget” to boost fuel reserves to 50 days plus.
Gross spending cuts of $64bn incl NDIS, inland rail & public service