13 May 2026

“While analysts are describing this week’s Federal Budget as one of the most consequential in decades, the real test will be whether it can genuinely restore living standards, lift productivity and rebuild long-term economic confidence.

“The Treasurer has framed this as a Budget centred on intergenerational fairness and equity, however it remains unclear whether the measures announced will materially improve living standards, increase housing supply or create genuine pathways for younger Australians to enter the housing market.

“In the last four years Australians have experienced one of the sharpest declines in living standards in the developed world. Inflation remains stubbornly higher than most other western countries and outside the Reserve Bank’s target range of 2-3 per cent, with interest rates expected to remain elevated for the foreseeable future, continuing to place pressure on households and businesses alike.

“Families and small businesses are still grappling with rising costs across energy, insurance, wages and compliance, while Australia has recorded the highest number of business insolvencies on record. Workforce shortages persist, businesses continue struggling to attract and retain staff, and the regulatory burden on industry shows little sign of easing.

“Against that backdrop, the Government’s cost-of-living measures are unlikely to deliver meaningful relief for many Australians. The proposed $250 Working Australians Tax Offset equates to little more than a cup of coffee a week and does not commence until 2027-28. Likewise, the final stage of Labor’s revised Stage 3 tax cuts will deliver only modest savings for the average worker, with two consecutive cuts of $268 for a typical worker over the next two years, delivering just over $5 a week.

“The Budget does include measures the business community will welcome. Making the $20,000 instant asset write-off permanent provides greater certainty for small business investment decisions. The reintroduction of the loss carry-back offset and refundable tax offsets for eligible start-ups are also positive steps, alongside expanded venture capital tax incentives aimed at supporting innovation and growth businesses.

“The Government’s proposed $1,000 instant tax deduction for work-related expenses from the 2026-27 income year will simplify tax compliance for many Australians by reducing substantiation requirements, while the legislated reduction in the marginal tax rate for incomes between $18,201 and $45,000 ‒ from 16 per cent to 15 per cent from 1 July 2026, and to 14 per cent from 1 July 2027 ‒should also provide some additional relief for lower and middle-income earners over time.

“However, proposed changes to negative gearing, capital gains tax concessions and discretionary trusts risk undermining investment confidence at a time when Australia desperately needs more housing supply and private sector investment. Many small business owners, mums and dads, and self-funded retirees rely on property investment as part of their long-term financial security, and these changes will directly impact those Australians.

“Remember the Prime Minister ruled out introducing these changes before the last election, and yet here we are. Significant structural tax changes should be subject to proper public debate and electoral transparency. Businesses and investors value certainty, particularly during periods of global economic volatility and growing geopolitical uncertainty.

“There are also broader questions around when Australia’s growing debt burden will be meaningfully addressed, with government spending continuing at historically high levels, including through significant off-balance-sheet investment commitments.

“Queensland appears to have fared poorly overall despite being the nation’s fastest-growing state through interstate migration. An additional 90,000 interstate residents are forecast to move to Queensland by 2029-30, placing enormous pressure on housing, hospitals, roads, rail and essential infrastructure already struggling to keep pace with demand.

“Despite this growth, critical infrastructure remains underfunded with ongoing disputes between the Federal Government and State Government about previously committed funding arrangements for projects such as Bruce Highway upgrades.

“While the Budget allocates $26.5 billion toward Queensland infrastructure, approximately $24 billion is directed to major rail and road projects, with $2.5 billion allocated across smaller programs such as Roads to Recovery, Safer Local Roads and Black Spot initiatives. Queensland has also received only $52.6 million through the Disaster Ready Fund, despite the scale of the state, its exposure to repeated natural disasters and the growing need for long-term resilience and recovery infrastructure.

“For the Sunshine Coast, rapid population growth continues to intensify pressure on critical infrastructure. Funding commitments for upgrades to Steve Irwin Way, Glass House Mountains Road and sections of the Bruce Highway are welcome, particularly the $812.5 million allocation toward Bruce Highway upgrades.

“However, for a region where tourism remains a major employer and economic contributor, there appears to be little targeted investment to support aviation connectivity, visitor infrastructure or broader tourism resilience. The Budget also missed an opportunity to provide clearer long-term infrastructure certainty for rapidly growing Olympic regions such as the Sunshine Coast ahead of Brisbane 2032, particularly as the region prepares for increased population growth, visitation and economic activity in the lead up to the Games.

“We welcome the Government’s commitment of $59.4 million over four years to help states and territories supplement rental income for community housing providers supporting vulnerable young people, a measure expected to deliver more stable housing outcomes for more than 4,000 young Australians at risk of homelessness. Queensland is also set to receive $372.3 million in 2026-27 under the broader $1.9 billion National Agreement on Housing and Homelessness ‒ a positive step at a time when housing affordability and availability remain under significant pressure across the region.

“We also welcome the establishment of the $2 billion infrastructure fund aimed at supporting the delivery of 65,000 new homes nationally through essential enabling infrastructure such as roads, water, electricity and sewerage. These types of investments are critical if Australia is serious about improving housing supply.

“Targeted cost-of-living measures, including the temporary halving of fuel excise and the reduction in the heavy vehicle road user charge, will provide some short-term relief for families and industry, particularly freight and transport operators already facing significant operating cost increases.

“Australia cannot tax or spend its way to stronger economic performance without meaningful productivity reform and policies that encourage private sector investment.

“Ultimately, business will judge this Budget not on headlines, but on whether it delivers meaningful economic reform, restores confidence, improves productivity and creates the conditions needed for long-term private sector investment and sustainable growth.”

About the Sunshine Coast Business Council

Sunshine Coast Business Council remains the peak business advocacy body on the Sunshine Coast, with membership spanning key national and regional industry groups and major private-sector employers across tourism, property, construction, retail, finance, telecommunications and professional services. Through this network the Sunshine Coast Business Council touches approximately 10,000 businesses.