2026 budget: Chalmers abolishes 'nuisance tariffs' and extends foreign home ban
Key measures include the removal of tariffs on air conditioners and margarine, an extension of the ban on foreign investors buying established homes until 2029, and new funding for cervical cancer treatment.
Treasurer Jim Chalmers has delivered the 2026 federal budget, a document that contains significant trade reforms and targeted funding allocations alongside headline tax measures. Among the most notable shifts in the policy landscape is the abolition of 497 tariffs described by the government as "nuisance tariffs". These levies, which impose compliance costs often exceeding the revenue they generate, will be cancelled across a wide range of imported goods including wine glasses, tyres, air conditioners, margarine, and bitumen.
The Treasury estimates that removing these specific tariffs will reduce government revenue by $70m over five years. This move is framed as a productivity boost aimed at reducing red tape for businesses. In a related trade and investment measure, the ban on foreign investors purchasing established homes, which was scheduled to expire next year, has been extended until 30 June 2029.
Health and biosecurity provisions feature prominently in the budget papers. The government will list the cancer drug Keytruda on the Pharmaceutical Benefits Scheme (PBS) specifically for the treatment of cervical cancer. Without this listing, the drug would cost $15,000 per script. Additionally, $11.2m has been allocated this year to maintain critical preparedness against High Pathogenicity Avian Influenza (HPAI H5) incursions, with a focus on protecting priority native wildlife in high-risk locations.
Travelers departing Australia by air or sea will face a higher fee from January 2027. The Passenger Movement Charge will increase by $10, rising from $70 to $80. This charge is included on airline tickets and applies to passengers leaving the country by either air or sea transport.
Significant funding has been directed toward sports infrastructure and specific teams. The budget allocates $20m over two years to upgrade and restore Leichhardt Oval in Sydney, the home of the Wests Tigers NRL team. Specific grants include $400,000 for South Melbourne FC to compete in the Oceania Football Confederation Pro League and $300,000 for the Wilston-Grange Australian Football Club to install electronic screens.
Further sports-related financial support includes $15m for a permanent base and training centre for the North Queensland Cowboys' women's team at West Barlow park in Cairns. Additionally, the venture to field a new Papua New Guinea rugby league team, the Chiefs, will see players and staff receive tax exemptions. The government estimates these tax breaks will cost $5.4m over four years.
In the realm of product safety and media, the budget confirms that recreational drone registration requirements will not proceed from 1 July 2026. However, $6.6m is allocated over three years for reforms to strengthen Australia's product safety framework, with an immediate focus on standards for e-bikes and other micromobility devices. Media institutions also receive support, with the ABC receiving $14m for Indo-Pacific broadcasting and the Australian Associated Press granted $15m for financial sustainability. The Commercial Broadcasting Tax has been suspended for two years at a cost of $111m.
