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The FSU welcomes many of the initiatives announced in last night’s Federal Budget, including tax reform and cost-of-living relief, which will go some way to making our society fairer and more equitable so working Australians can get ahead. 

Many finance workers are bearing the brunt of increased inflation and resulting stagnating wages, but it’s promising to see the Federal Government start to balance our tax system in favour of everyday workers, including working women.

FSU member Helen Cadzow said it was about time the government began overhauling the tax system to create fairness.

“I have two young adult kids living at home for the foreseeable future, as they can’t afford to rent or buy their own home,” Helen said.

“The government needs to address the inequality in our tax system as it is no longer fit for purpose.

“The reforms to negative gearing and capital gains tax are a good start to making housing more affordable, though it was disappointing that the gas and mining industries didn’t get a levy similar to the banking levy."

So what exactly was in the budget for working Australians?

Cost of living relief 

• An ongoing $250 tax offset – dubbed the ‘Working Australians Tax Offset’ – for every Australian who earns income through wages. To commence in the 2027-2028 financial year to avoid fuelling inflation in the near term. 
• Instant $1000 tax deduction for work-related expenses from 2026/2027, saving an average $205. 
• Two further tax cuts (previously announced) – from 1 July 2026, 16% tax rate will drop to 15% (equating to up to $268), then dropping to 14% from 1 July 2027 (equating to up to $536 every year thereafter). 

Changes to negative gearing and capital gains tax 

In a bid to make housing more affordable and fairer for first-home buyers, and to rebalance the tax system in favour of Australians who earn their income through wages, the government will: 

• scrap negative gearing for existing homes purchased after 12 May 2026 – with existing arrangements to be grandfathered. Negative gearing will now be limited to new builds only, to incentivise more housing. 
• overhaul the capital gains tax discount, with the 50% discount replaced by a discount based on inflation. 

Australian Unions, including the FSU, led the push to reform negative gearing and capital gains taxes, which have driven up house prices by more than 400% – almost twice as fast as average full-time earnings.

These changes will be phased in over time to protect people who planned under the current rules. However, without tackling housing affordability, we know that every hard-fought pay increase risks being swallowed up by rising rent and house prices. 

Fuel resilience and relief 

• $2.9 billion to halve the fuel excise, saving commuters about 26.3 cents per litre (approximately $19 per fill). 
• Establish a new east coast domestic gas reservation and a $14.8 billion ‘Strengthening Australia’s Fuel Resilience’ package to safeguard national fuel security and protect Australians jobs and their communities. 

The fuel crisis is something that affects our entire economy – especially average working people – so we welcome the government’s proactive response and measures to keep fuel costs down.

Gender equality

In addition to the above, the Federal Government is also continuing its focus on gender equality through its fifth Women’s Budget Statement – with initiatives ranging from steps to eliminate gender-based violence, addressing the unequal distribution of unpaid work and care, and structural reforms to help women earn more, keep more of what they earn and achieve long term financial security.

Some initiatives that have previously been announced and now feature in the budget include:

• Encouraging paid care through expanded paid parental leave.
• Delivering significant workplace relations reforms and driving employer action on gender equality.
• Reforming superannuation to help women retire with more.