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Federal budget 2026 live updates: treasurer Jim Chalmers to present budget speech tonight – latest news

Federal budget 2026 live updates: treasurer Jim Chalmers to present budget speech tonight – latest news

Chalmers says budget will help address One Nation surge

Josh Butler

The treasurer, Jim Chalmers, admits the housing and tax systems are “not working for a lot of Australians”, saying tonight’s budget has an eye on addressing the factors driving voters to One Nation.

The government is promising bold reform and the budget will contain changes to negative gearing and capital gains tax in a move to level the playing field between ordinary people and wealthier classes and investors. The prime minister, Anthony Albanese, says a surge to rightwing populists such as One Nation is “what happens when people don’t think they have a shot at a fair go”. Chalmers echoed those comments on Tuesday morning.

“I think the housing market and the tax system is not working for a lot of Australians, and tonight we seek to address that,” Chalmers said.

double quotation markI don’t dismiss or deny the very real concerns that a lot of Australians have about their ability to get a toehold in the housing market or to get a toehold in the economy more broadly.

Chalmers said the budget was “not a political document or a political strategy, it’s an economic plan”, but that it would respond to some of those concerns.

“It will respond to a lot of the pressures and anxieties that people are feeling, which is driving them to consider some of the parties outside the mainstream,” Chalmers said.

“The Australian Labor party is the last one standing in the sensible centre of Australian politics but we’re not standing still.”

A cardboard cutout of Pauline Hanson in Farrer
A cardboard cutout of Pauline Hanson in Farrer. Photograph: Hollie Adams/Reuters
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Benita Kolovos

Benita Kolovos

Vic opposition leader vows to deliver 2032 surplus

Victorian opposition leader Jess Wilson also repeated her vow from Friday to deliver a cash surplus by 2032, along with progressively lifting the payroll tax threshold for businesses and the land tax threshold for property investors. She told parliament:

double quotation markRepairing the budget is how we build the strong foundation for Victoria to have a brighter future. We cannot pretend the challenges will fix themselves. We cannot keep borrowing from the future to pay for the present. We cannot keep asking Victorians to carry the burden of Labor’s debt. So let’s take a different path. Our 10-year plan will restore confidence, reduce debt, and build a stronger Victorian economy.

Unions on Friday lambasted the opposition’s economic plan, while Labor released an attack ad claiming it amounted to more than $40bn in cuts and would put one in seven public servants out of a job.

But Wilson said in her budget reply:

double quotation markAnyone who tells you that a Coalition government will lay off public servants is lying to you.

The Victorian treasurer, Jaclyn Symes, earlier on Tuesday committed too releasing the details behind the government’s “$40bn black hole” calculation:

double quotation markVictorians should be very worried about what the Liberal opposition have to say [in the budget reply]. They let the cat out of the bag on Friday, when they announced what we conservatively estimate as $40bn of cuts over the next five to six years. You can’t promise a net cash surplus without stopping building. You can’t promise one in seven job cuts without making devastating cuts to the public sector. Victorians deserve an explanation of where these cuts are going to come from, because $40bm is an incredible amount that will have a huge impact on everyday Victorians.

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