The Federal Government handed down the budget for 2026 on 12 May, which treasurer Jim Chalmers said was the “most significant tax reform package in more than a quarter of a century.”
The most notable reforms came to the housing sector, with changes made to negative gearing, capital gains tax discounts, and tax treatments on trusts aimed at “delivering a fairer tax system for workers, first home buyers, and future generations,” the treasurer said.
For some, the over $63 billion saved by the budget may not be at the top of the list of priorities, with Catholic organisations in some cases critiquing and or else praising the allocation of the nation’s funds.
The St Vincent de Paul Society praised the changes to the housing system, describing them as a “meaningful step toward improving fairness” in the housing market.
National council president Mark Gaetani said the new rules for tax on investment properties reduces the structural pressures being felt by Australians.
“For too long, tax settings have disproportionately favoured property investors over first home buyers and low-income renters,” Gaetani said in a statement.
“These reforms recognise that housing should be treated first and foremost as a basic human right, not primarily a vehicle for wealth accumulation.”
The Society had advocated for some of the changes made by the government, including reducing the capital gains tax discount and axing negative gearing.
Gaetani is calling for further change, not just in the legislation but in the attitudes towards those experiencing housing anxiety and instability.
“A wealthy country like Australia can afford a fairer and more compassionate approach,” he said.
“These reforms are a positive start, and they must be matched by serious investment in housing and adequate income support that helps people to live a decent life if we are to deliver lasting change.”
Catholic Social Services Australia (CSSA) CEO Jerry Nockles said because inflation is “not evenly spread,” extra care must be taken to ensure those experiencing hardship do not struggle even more.
“In a time of global uncertainty and economic shocks, this budget takes important steps to build resilience and reform the economy, but more targeted support is needed to ensure no is left behind,” he said in a statement.
“Budgets are moral statements and how a government allocates its resources reveals their values.”
Nockles said the organisation welcomed the $60 million youth housing supplement and the new $2 billion local infrastructure fund, which are both aimed at easing the nation’s housing crisis.
Catholic Health Australia backed the renewed focus on aged care, which included an expansion of the support at home packages meant to help older Australians stay in their homes and cut down the waitlists for those needing inpatient care.
CHA director of aged care Alex Lynch said the charity had been calling for the number of recipients for the packages to be increased, noting it was critical if people wished to “age at home with dignity.”
“Providers caring for the most vulnerable older Australians have been doing it incredibly tough, accommodation funding simply hasn’t been covering the cost of maintaining buildings and keeping facilities safe and comfortable,” he said.
“This uplift will help protect access to care while broader pricing reform is finalised.”
CHA also lauded the government’s commitments to consult on private health reform and to add $24.4 billion to the public hospital system.
Catholic School Parents Australia (CSPA) welcomed the $34.4 billion the government set aside for the Better and Fairer Schools funding over the next financial year, and highlighted the importance of Catholic schools, especially in regional areas.
“Catholic education remains one of Australia’s great success stories, providing affordable, values-based education to families from all walks of life while strengthening communities across the nation,” said CSPA chair Andrea Obeyesekere.
“Importantly, parents need certainty that their children can continue to access high-quality learning environments that nurture academic achievement, wellbeing, faith and belonging.”
Looking overseas, Caritas Australia said the governments continued commitment to overseas aid, coming in at a cost of $5.2 billion for overseas development assistance, came at a critical moment.
“Around the world, people are facing compounding crises such as ongoing conflict, climate-driven disasters and economic shocks, all while global aid is under great strain,” said Caritas Australia CEO Kirsten Sayers.
“In turn, Australia’s continued commitment to international assistance serves to save lives, strengthen communities and contribute to a more stable and peaceful region.”
The government kept its aid and development focus within the region, with approximately $2.2 billion going to assist Pacific nations and other $1.4 billion allocated for Southeast Asia.
