Despite some green shoots late last year, the Australian economy has again turned a corner for the worse, with inflation too high and the RBA again raising rates as a result.

On Tuesday 12th May 2026, Treasurer Jim Chalmers handed down the Federal Budget 2026-27, noting it to be "the most important and ambitious budget in decades".

Treasurer Jim Chalmers delivered the 2025-26 Federal Budget on March 25th amidst looming elections, revealing a $27.6 billion deficit after recent surpluses and projecting ongoing deficits alongside a $556 billion net debt.