Jim Chalmers has delivered the new Federal Budget for 2026 to 2027, with his “most important and ambitious Budget in decades” targeting productivity, fuel security, and streamlining business regulations.
Highlighted by an instant asset write-off for small businesses with a turnover below $10 million, commitments to reduce the regulatory burden by $10.2 billion per year have been widely met with positivity from Australia’s business community.
“This Budget recognises lifting productivity is essential to securing Australia’s long-term economic resilience,” said Australian Food and Grocery Council (AFGC) CEO, Colm Maguire.
“The food and grocery manufacturing industry is Australia’s largest manufacturing sector, employing almost 300,000 people and producing essential goods for every household in the country. Policies that help businesses invest in new technology, improve efficiency and address workforce shortages are critical.”
Maguire added that the current geopolitical climate leaves room for further volatility and subsequent pressure on manufacturers and consumer prices.
“Industry and government must continue working together to improve productivity, strengthen supply chain resilience and ensure Australia remains an attractive destination for manufacturing investment,” he said.
The AFGC’s broad positivity was largely matched by the National Farmers Federation (NFF), which praised the $14.8 billion package earmarked for strengthening the country’s fuel security.
“Last night’s budget includes a number of practical measures that will help ease pressure on farm businesses and strengthen Australia’s food and fibre supply chains,” NFF Horticulture Council chair Jolyon Burnett said.
“From tax reform certainty to fuel and fertiliser supply security and deferring export cost recovery, these are outcomes we have fought hard for on behalf of farmers across the country.”
But the country’s winemaking industry has criticised Chalmers’ provisions. Industry body Australian Grape & Wine (AG&W) said it is the third consecutive year that “calls for targeted intervention have gone unanswered”.
AG&W slammed the government for removing the Wine Tourism and Cellar Door Grant program, claiming it amounts to a $10 million annual loss for winemakers.
“At the worst possible time, this government has chosen to withdraw a program that directly supports regional businesses,” said Lee McLean, CEO of Australian Grape & Wine.
“For many producers, this is essential to maintaining cash flow and profitability. Ending it now effectively pulls the rug out from under businesses already facing enormous pressure.”
