This year’s Federal Budget, for the financial year 2026-2027, was hotly anticipated amid geopolitical uncertainty and ongoing conflict in the Middle East.
Built around Treasurer Jim Chalmers’s three pillars of reform, restraint and resilience, the Budget focuses on cost-of-living pressures, productivity, tax reform, care and opportunity, as well as fuel supply and national security and investment. This Budget presents a range of opportunities and implications for our sector.
1. Disability and the NDIS
As foreshadowed, the Government has outlined plans to return the National Disability Insurance Scheme (NDIS) to its original intent. The reforms are slated to save $37.8 billion over the next four years and include amendments to eligibility and plan reassessment criteria, clearer guidance on supports, and measures to reduce fraud. A Technical Advisory Group will be established and Disability Representative Organisations will be able to facilitate community consultation on the reforms.
The Budget also includes funding for an Inclusive Communities Fund to strengthen community sector capability and investment for the Thriving Kids initiative; a new funding program to support early intervention services for children aged 8-years and under with autism and/or developmental delay and low to moderate support needs.
Read the Government’s NDIS reforms timeline here: https://www.health.gov.au/resources/publications/securing-the-ndis-for-future-generations-timeline-0?language=en
2. Housing
Housing remains a key Government priority, with continued investment to increase supply and improve access to safe and affordable housing. This includes funding for critical infrastructure to support new housing developments and additional support for Community Housing Providers working with young people experiencing or at risk of experiencing homelessness.
The Government has also reaffirmed its commitment to delivering 55,000 social and affordable homes over the next four years, alongside measures to improve housing quality and infrastructure in remote First Nations communities.
3. Health care
Broader health measures include secured investment in Medicare Urgent Care Clinics and cheaper PBS medicines. A 12-month extension of the National Mental Health and Suicide Prevention Agreement will continue services such as Medicare Mental Health Centres and headspace clinics.
Funding has also been directed to First Nations health through increased health infrastructure for Aboriginal Community-Controlled Heath Services (ACCHS) and boosts for the Birthing on Country Program and 13YARN. The Budget also includes committed and ongoing funding for public dental services for low-income adults.
4. Aged care
The Budget delivers further investment in aged care, with measures aimed at expanding residential accommodation, increasing access to in-home support and improving service quality and affordability. Funding will support providers to build and expand facilities, while reforms to the Support at Home program are intended to simplify access and reduce cost pressures for older Australians.
5. Gender equality and family and domestic violence
Gender equality continues to be a focus with ongoing support for the Fair Work Commission’s Gender Undervaluation Priority Awards Review, which seeks to address pay inequities in female-dominated industries including childcare, social/community care and pharmacy. The Government has also outlined reforms to close loopholes that enable financial abuse and coercion, through the Child Support Scheme and additional investment in Aboriginal community-controlled organisations and strengthening specialist frontline services.
Read more about the Priority Awards Review here: https://www.fwc.gov.au/hearings-decisions/major-cases/gender-based-undervaluation-priority-awards-review
6. Productivity & AI
To reduce Government red tape and eliminate overlapping reporting, budget measures have been earmarked to improve synchronisation between Australian Securities and Investments Commission (ASIC) and the Australian Charities and Not-for-profits Commission (ACNC) registers. These are expected to improve data integrity and reduce compliance burden for charities.
The Government also continues implementation of the National AI Plan. Specific tools and resources for the sector are described at the newly launched National AI Centre released on 8 May 2026.
Access the Government’s National AI Centre here: https://www.ai.gov.au/
Read more about AI resources that can be accessed for social impact here: https://www.ai.gov.au/news-and-insights/blog/responsible-ai-social-impact
7. Tax reform
The Budget outlines a suite of tax measures aimed at supporting cost of living relief, boosting investment and improving productivity across the economy. These measures include tax cuts for workers and historic reforms to negative gearing and capital gains tax to try and increase housing availability and affordability.
Read ACOSS commentary on housing and trust tax reforms here: https://www.acoss.org.au/media_release/historic-housing-and-trust-tax-reforms-welcomed-but-people-with-the-least-miss-out-again/
Sector support
As always, Strategic Grants GEMS subscribers will be updated about any new or revised funding opportunities relevant to their particular sector area of activity – their customised calendars will be updated by our Research Team, and automatic email alerts sent when updates are released.
For those interested in learning how to engage government for influence and funding, join us for a practical webinar with Bianca Williams (Client Services Manager, Strategic Grants) and Angus Crowther (Director and Co-Founder, Tanck) to discuss contributing factors to receiving government funding – from strategic engagement to prospect identification and preparation of quality funding applications.
When: Thursday 28 May, 12:00 pm – 1:00 pm AEST
Where: Online (live webinar via Zoom)
Cost: Free
Register here: https://www.strategicgrants.com.au/event/webinar-engaging-government-for-influence-and-funding/
Additional budget wrap-up and resources:
- Budget documents: https://budget.gov.au/
- Budget Women’s Statement: https://budget.gov.au/content/womens-statement/download/womens-budget-statement-2026-27.pdf
About the author
Mona McDonnell is a Research Analyst and GEMS User Experience Coordinator at Strategic Grants. In this role, she conducts in‑depth research to ensure GEMS has accurate, up‑to‑date funding information, while also helping clients confidently navigate the platform and make the most of its features.
She brings a unique mix of legal expertise, investigative experience and a genuine passion for the for‑purpose sector. A qualified lawyer with experience in commercial litigation and health practitioner regulation, Mona has spent her career untangling complex regulatory issues, supporting decision‑makers and ensuring compliance with complex legislative frameworks. These skills now translate into helping for‑purpose organisations identify and secure the funding they need to thrive.