Federal budget 2026-27: key announcements for Australia’s community sector

The budget includes significant investment in health, housing, aged care and First Nations programs, while also signalling tighter spending in areas such as the NDIS. For community organisations, the announcements may translate into future grant opportunities, partnerships and service delivery contracts over the coming year.

Funding highlights for community groups and social sector services included:

Aboriginal and/or Torres Strait Islander peoples

• $1.2 billion to continue to work with First Nations communities to deliver Closing the Gap commitments
• $299 million to double the successful Remote Jobs and Economic Development Program from 3,000 to 6,000 new jobs supporting employment opportunities with paid work and conditions in First Nations communities.
• $144.1 million to expand on the more than 100 projects already delivered or underway to improve health infrastructure across Aboriginal Community‑Controlled Health Services
• $44.4 million for culturally‑safe maternal care for 1,100 mothers, and providing $18.9 million to expand access to culturally‑safe crisis care through 13YARN.
• $250 million in dedicated funding for new, co‑designed programs to improve First Nations health outcomes, with $200 million matched by states and territories.
• $113 million to improve education outcomes, including extending the Clontarf Foundation’s young men’s program and the Indigenous Boarding Provider grants program

Aged care and seniors

• $3.7 billion to deliver more beds, more packages and better care for older Australians to ensure they get the support they deserve.

Bushfire and disaster relief

• Funding for natural disaster relief is expected to increase by $2.5 billion.

Children and families

• $171.7 million for front line community services including through a new, simplified Children and Families Support program.

Community development

• $841.7 million in community infrastructure, including through the:
  • Thriving Suburbs
  • Growing Regions and
  • Stronger Communities programs.
• $46.7 million in financial support to the wider Jewish community, including for security and infrastructure upgrades and grant opportunities to support priority projects, including for a Chabad of Bondi project.

Domestic and family violence

• $1.2 billion in crisis and transitional accommodation programs. This includes a $1 billion commitment under the Housing Australia Future Fund – Crisis and Transitional stream.
• $182.6 million to make the Child Support Scheme safer so children get the financial support they need and women are protected from conflict and abuse.
• $218.3 million to support delivery of Our Ways – Strong Ways – Our Voices, Australia’s first standalone plan to end violence against Aboriginal and Torres Strait Islander women and children.
• $61.2 million for the 500 Workers Initiative.
• $41.8 million to continue the critical service delivery of 1800RESPECT.
• $77.6 million to give all Australian students access to age-appropriate consent and respectful relationships education

Environment

• $1.1 billion Cleaner Fuels Program to provide production support to the domestic low carbon liquid fuels industry.
• $1 billion Round 2 of the Hydrogen Headstart program to provide revenue support for large‑scale renewable hydrogen projects.

Health

• $25 billion in additional funding for state and territory public hospitals to reach $220.3 billion over five years.
• $1.8 billion to secure the future of Medicare Urgent Care Clinics

Homelessness and housing

• $59.4 million to help Community Housing Providers provide social housing for over 4,000 young people aged 16–24 who are at risk of or experiencing homelessness.

People with disabilities

• $2 billion to establish the Thriving Kids program as part of the $5 billion Foundational Supports commitment to be matched by the states.

Public safety

• $21.7 million in Disaster Recovery Funding Arrangements to support the Bondi community in response to the Bondi Junction attack.

Science and technology

• $70 million for AI Accelerator grants to boost AI development.
• $508.5 million to increase disbursements for medical research from the Medical Research Future Fund

Learn more: Post-budget webinars and briefings

Want to hear from sector experts about what the budget means for your organisation? These organisations are hosting post-budget webinars with a community focus in the coming days:

Australian Council of Social Service (ACOSS) Post-budget event | Tuesday 19 May, 9am–12pm AEST, face to face, Sydney NSW

Rendere Environmental Trust, Biodiversity Council, Country Needs People & Australian Marine Conservation Society Federal budget breakdown webinar | Monday 18 May, 3pm-4.30pm, online webinar

How to find funding from the budget announcements?

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