Tax Changes Create $77 Billion War Chest for Future Pre-Election Tax Cuts

With a federal election scheduled for 2028, it opens the door for more tax cuts in coming years.

Australian Prime Minister Anthony Albanese and Treasurer Jim Chalmers arrive at Parliament House in Canberra, Australia on May 13, 2026. Hilary Wardhaugh/Getty Images

Tax changes in the budget give the government scope to direct more relief to workers in future, raising the prospect of a 2028 pre-election sweetener.

While higher taxes on assets will be returned to workers via tax cuts in the short term, Treasury predicts the budget changes will deliver the government a $77 billion war chest over the 10 years to 2036/37.