Federal budget 2026 winners and losers: rich families, overseas travellers and illegal tobacco – summary

Being a winner or a loser from the federal budget can be the difference between hundreds of dollars – or tightening your belt even further. Tuesday’s federal budget comes at a strange time. Donald Trump is waging a war on Iran that is impacting fuel supplies globally, including Australia. Inflation is still causing havoc on household budgets. Government programs are costing more than ever. We’ve read hundreds of budget paper pages so you don’t have to. Here’s who ends up better after Tuesday night, and who doesn’t. Budget winners Taxpayers There are no real surprises in this budget but a new tax cut is on its way for working Australians. The Working Australians Tax Offset will be a permanent offset of up to $250 from the 2027-28 income year and is expected to apply to more than 12.5m Australians. It will be in addition to the lowered 15% tax rate for income between $18,201 and $45,000 from July 2026. That rate will drop to 14% for that same income range from July 2027. And from 2026-27, taxpayers will be able to make an instant tax deduction of $1,000 without needing to keep any receipts. A big win for the Type B personalities among us. Sign up for the Breaking News Australia email Public servants Despite a lot of criticism from the opposition in the lead up to last year’s federal election, the bureaucracy will increase in size again to the largest it has ever been. The average staffing level for 2026-27 has been set at 217,256, up from 215,941 last financial year. …