The state reported an operating surplus of $3.5b, with surpluses forecast across each year of the forward estimates, rising to $4.1b in 2029-30. Net debt is projected to be $34.5b in 2025–26, $4.5b lower than forecast in the 2025-26 Budget and is expected to increase to $44b by 2029-30.
The unemployment rate is estimated at 4 per cent in 2025-26 and is projected to remain relatively stable at 4.5 per cent by 2029-30.
The economic outlook continues to be influenced by global uncertainty and ongoing inflationary pressures.
Key spending highlights
- $6.5b for hospital services.
- A further $4.7b to improve housing supply and affordability including $1.3b to residential land supply.
- An additional $1.9b for education and training.
- $1.5b on health infrastructure projects including a hospital maintenance package and allocation to a Building Hospitals Fund.
- $1.4b to a Clean Energy Fund.
- $208m for stamp duty relief for first home buyers.
- $500m to a Major Projects Fund for Clean Energy Link projects.
- $198m towards the Fuel Support Payment.
Revenue measures
Revenue measures in this year’s budget focused on housing affordability, first home buyers and increasing housing supply.
New foreign transfer duty exemption for build‑to‑sell developments
A new foreign transfer duty exemption for eligible build‑to‑sell developments will apply for transactions entered into on or after 7 May 2026. The exemption will apply to projects that deliver a net increase in housing supply of at least one dwelling, subject to the relevant eligibility criteria and forthcoming legislation. The exemption will require foreign buyers to construct and sell new dwellings within 2 years of the original purchase and include a variety of development activities that add to housing supply including:
- purchasing vacant land and constructing a dwelling(s)
- purchasing and completing a partially constructed dwelling(s)
- purchasing land with established property on which more dwellings will be constructed than demolished; and
- repurposing or refurbishing commercial or industrial buildings into residential dwellings.
Expanded transfer duty concessions for first home buyers
The Cook Labor Government has announced a third round of transfer duty relief for first home buyers, aimed at improving affordability and supporting additional housing supply. The expanded concession and exemption thresholds form part of a $297m housing tax package, which also seeks to support downsizing by eligible seniors.
While the changes apply to transactions entered into after 7 May 2026, the enabling legislation is still pending, and implementation is expected later in 2026.
Announced measures include:
Newly built/established homes for first home buyers
- Full transfer duty exemption for properties valued up to $600,000 (previously $500,000).
- Concessional rates extended to purchases valued up to $800,000 (previously $700,000).
Vacant land
- Full exemption for land valued up to $450,000 (previously $350,000).
- Concessional rates extended to land valued up to $550,000 (previously $450,000).
In addition, the First Home Owner Grant (FHOG) value cap has been increased to $800,000 (previously $750,000). The previous linkage between the FHOG value cap and eligibility for the first home buyer rate of duty has also been removed, allowing eligible purchasers to access duty concessions even where the transaction value exceeds the FHOG cap.
Extension and expansion of off‑the‑plan duty concessions
As part of a series of pre-budget announcements, transfer duty relief for off‑the‑plan purchases has been expanded to apply to survey‑strata dwellings for the first time, in addition to apartments, townhouses and other built‑strata developments. Under the expanded concession, no transfer duty applies to off-the plan purchases valued up to $800,000, with a 50 per cent concession available for off-the plan purchaser valued above $900,000.
For purchases of dwellings under construction, a 75 per cent concession is available up to $800,000, reducing to 37.5 per cent concession for dwellings above $900,000.
If you wish to discuss the above budget announcements, please reach out to a Grant Thornton Partner today.
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