On the 12th of May 2026, Treasurer Jim Chalmers delivered the 2026–27 Federal Budget, setting out a strategy that continues to balance cost-of-living pressures with targeted investments in national resilience, innovation, and community outcomes.
This year’s Budget introduces a number of notable shifts ranging from new funding channels for AI commercialisation and defence capability, to significant reforms to the R&D Tax Incentive, and a reprioritisation across low carbon programs:
- Defence: Long-term investment commitments dominate, with continued access to SME grant programs and new opportunities emerging across strategic policy and workforce pathways.
- Aboriginal & Torres Strait Islander Organisations: Expanded funding for remote employment, health infrastructure, heritage protection, and tourism signal a continuation of the growing commitment to community-led development.
- Industry: An emphasis on supply chain resilience and fuel security is evident, alongside targeted investment in emerging technologies, including AI. Existing funding frameworks will continue to play a central role for Industry organisations.
- Low Carbon & Environment: Funding will continue in targeted areas, though the broader reprioritisation of funding across major programs may signal a more selective approach to low carbon energy investment.
- Not-for-Profit & Community: Increased investment in infrastructure, family support, and community growth is reflective of efforts to achieve beneficial community outcomes through coordinated funding.
- Trade & Foreign Affairs: Key programs for export market development remain stable, with an extension of support committed to fostering international collaboration.
- Research & Innovation: Significant reforms to the R&D Tax Incentive and the expansion of venture capital settings look set to reshape the innovation landscape, particularly for growing and early-stage firms.
To help you quickly understand what matters most, Avant Group has prepared a snapshot report highlighting key funding changes, emerging opportunities, and areas of reprioritisation. A more detailed, comprehensive report will follow, so keep an eye out for that to come.
In the meantime, it is clear these changes reflect an evolving funding landscape that requires careful navigation. At Avant Group, we are committed to helping businesses navigate this dynamic environment and unlock their full funding potential. We work closely with our clients to identify strategic opportunities and provide tailored support to maximise access to available grants and funding. Our team specialises in navigating the complexities of securing grants and funding: identifying suitable opportunities, preparing high-quality submissions, and overseeing the process end-to-end to maximise the likelihood of success.
If you have any questions regarding the 2026–27 Budget, or would like to speak with our team about how we can support your business, please feel free to contact us at [email protected] or via phone 03 8567 7500.
Alternatively, you can also book a meeting here.
For the wealth perspective on the Federal Budget, read Avant Capital’s comprehensive analysis here.
