Overview

The 2026-27 Federal Budget sought to strike a balance between cost-of-living relief for households and the urgent need for economic reform to raise productivity.  

Against the backdrop of rising inflation and declining GDP growth, a $28.3 billion deficit is expected for 2025-26.  

The Budget points to deficits out to FY2034-35 despite a cumulative $44.9 billion improvement in the bottom line over the next four years, courtesy of higher tax revenues and net savings of $26.1 billion.  

The volatile global outlook adds to pressure and uncertainty, which is compounding domestic challenges and eroding business conditions and confidence. 

There are positives for business in this Budget, but much remains to be done. Business NSW continues to call on Government to raise its ambitions for reform, and to continue to engage with the business community.