Australian Federal Budget 2026-27: Key Grants & Funding Initiatives

Note: This summary has been prepared by Claude with careful prompting for our grant-seeking audience, for the sake of speed of information sharing. I (Jessie, Founder of The Grants Hub) will review in detail tomorrow morning, Wednesday 13 May.

Treasurer Jim Chalmers has tonight delivered the 2026–27 Federal Budget, framed around six themes: fuel supply and security, cost of living, productivity, tax reform, care and opportunity, and security and investment. The budget is shaped by the global oil shock triggered by the Middle East conflict, which has influenced fiscal settings across almost every portfolio.

For the community sector and grant seekers, this is a budget of new investment in some critical areas — aged care, disability foundational supports, First Nations communities, housing for young people, and family violence — alongside significant structural reform of the NDIS and some cuts and redirections within grant programs.

This summary is drawn exclusively from the official 2026–27 Budget Papers released tonight at budget.gov.au. All figures are from Budget Paper No. 2, Budget Measures, unless otherwise noted.

⚡ Quick Summary — What Matters Most for Grant Seekers

Biggest new programs:

• $2.0 billion (Commonwealth) for the new Thriving Kids program for children with developmental delay or autism (matched by states, $4 billion total)
• $1.4 billion improving access to home care under the Support at Home program, including making personal care (showering, dressing) free of charge
• $841.7 million for community infrastructure — Thriving Suburbs, Growing Regions and Stronger Communities programs
• $793.7 million over five years for Closing the Gap — including doubling the Remote Jobs program, expanding Birthing on Country, ACCHS infrastructure, Clontarf Foundation and much more
• $606.5 million for residential aged care capital subsidies and dementia care expansion
• $308.6 million for continued investment in ending gender-based violence, including the Our Ways First Nations plan, more frontline workers, and the Leaving Violence program
• $220.3 billion over five years for public hospitals under the renewed National Health Reform Agreement (including a new First Nations health schedule)
• $182.6 million to make the Child Support Scheme safer against weaponisation and financial abuse
• $171.7 million (and $42.9 million ongoing) for a new Children and Family Support program, replacing existing family programs with a simplified national model
• $59.4 million to help Community Housing Providers house young people aged 16–24 at risk of homelessness

Important restructuring and savings:

• NDIS reforms — projected to reduce growth by $37.8 billion over four years; tighter eligibility, commissioning of plan management and support coordination, stronger fraud controls
• Modernising Private Health — $3.0 billion in savings from removing the age-based uplift to the Private Health Insurance Rebate (from April 2027); savings reinvested in aged care
• Education portfolio savings — $472.1 million over four years from compliance improvements and ceasing undersubscribed student loan programs
• Employment and Workplace Relations savings — $297.9 million over five years from reforming apprenticeship incentives and redirecting uncommitted grant program funding
• Agriculture savings — $104.6 million by reducing uncommitted funding across grant programs including Pest and Disease Preparedness, Wine Tourism, Agriculture and Land Sectors, and others

🏘️ Community Services — Priority Focus

Children and Families

Children and Family Support Program — NEW

$171.7 million over five years from 2025–26 (and $42.9 million per year ongoing) to establish a single national Children and Family Support program from 1 July 2027. This program consolidates existing government-funded family programs and services — currently supporting up to 270,000 children and families each year — into a simplified national model. Funding includes:

• $156.3 million over three years from 2027–28 (and $40.8 million per year ongoing) for additional frontline services to support children's development and wellbeing and empower parents, caregivers and families
• $9.7 million over five years from 2025–26 to support implementation of the program
• $5.7 million over four years from 2026–27 for capacity building in the families and communities sector

The program will direct investment toward flexible, evidence-informed prevention and early intervention (including parenting programs), increase services delivered by Aboriginal Community Controlled Organisations (ACCOs), and strengthen collaboration with service providers and communities.

This is significant for NFPs currently funded under family programs administered by the Department of Social Services. The transition to 1 July 2027 provides some lead time. Watch GrantConnect for new program guidelines.

Inclusion Support Program — EXPANDED

$54.8 million in 2026–27 to help early childhood education and care services increase their capacity to support children with additional needs, through tailored support and funding to services.

Housing and Homelessness

Supporting Youth into Community Housing — NEW

$59.4 million over four years from 2026–27 to provide states and territories with funding for community housing providers to supplement rental income for social housing for over 4,000 eligible young people aged 16–24 who are in receipt of the Away from Home rate of Youth Allowance or ABSTUDY and who are at risk of, or experiencing, homelessness. Girls and young women represent 66 per cent of Specialist Homelessness Services clients aged 16–24 presenting on their own.

This is a direct funding opportunity for community housing providers. Watch for DSS/Treasury guidelines.

Local Infrastructure Fund (Housing) — NEW

$2.0 billion over four years from 2026–27 through the Housing Support Program — Local Infrastructure Fund, providing funding via states and territories to support local governments and state utility providers to deliver housing-enabling infrastructure (water, power, sewerage, roads). Funding is contingent on states committing to reforms including faster approvals and releasing more land for building. This aims to support up to 65,000 homes over the decade.

Family, Domestic and Sexual Violence

Ending Gender-Based Violence — EXPANDED

$308.6 million over five years from 2025–26 (and $15.9 million per year ongoing) to continue and extend investment in ending gender-based violence. Funding includes:

• $218.3 million over five years from 2025–26 to support initial actions under Our Ways – Strong Ways – Our Voices: National Aboriginal and Torres Strait Islander Plan to End Family, Domestic and Sexual Violence 2026–2036, including funding for a national network of ACCOs to deliver FDSV services and an extension of the Leaving Violence Payment regional trials ($32.5 million for a one-year extension)
• $61.2 million over four years from 2026–27 (and $15.9 million per year ongoing) for the next phase of the 500 Workers Initiative, increasing total funding to $291.7 million. Since 2022–23, more than 35,000 people impacted by FDSV have been supported across 233 organisations.
• $15.5 million over five years from 2025–26 for the new Our Ways Strong Together peak body (National Peak Body for Aboriginal and Torres Strait Islander Family Safety)
• $11.7 million in 2026–27 to continue the Family Violence and Cross-Examination of Parties Scheme, funding state and territory legal aid commissions to provide legal representation in family law proceedings involving FDSV
• $5.4 million in 2026–27 for the eSafety Commissioner's Technology-Facilitated Abuse Support Service
• $4.5 million in 2026–27 for culturally safe crisis accommodation for Aboriginal and Torres Strait Islander peoples
• $4.1 million over two years from 2026–27 for Primary Health Networks to continue trauma-informed outreach health support for women experiencing domestic and family violence or homelessness

Child Support Scheme — NEW INVESTMENT

$182.6 million over four years from 2026–27 (and $19.6 million per year ongoing) to close loopholes enabling weaponisation, financial abuse and non-compliance in the Child Support Scheme. Reforms include stronger protections in Private Collect, improved pathways to Agency Collect, expanded employer withholding, and departure prohibition orders for parents with large arrears.

For NFPs working in family law, legal aid and DFV services: this systemic reform will likely increase demand for related support services.

Aged Care

Improving Access to Home Care — NEW

$1.4 billion over four years from 2026–27 (and $377.3 million per year ongoing), including:

• $1.0 billion to ensure personal care services — showering, dressing, continence care — are fully government-funded with no co-contributions for all care recipients in the Support at Home program
• $389.8 million to implement Support at Home program refinements including assessments, hardship applications, end-of-life pathway, and to bring forward the release of Support at Home packages in 2026–27

Residential Aged Care Supply and Equity of Access — NEW

$606.5 million over four years from 2026–27 (and an additional $3.0 billion from 2030–31 to 2035–36), including:

• $348.4 million to introduce new capital subsidies for residential aged care providers — $30.00 per supported resident per day for newly constructed homes (payable for up to 25 years) and $15.00 per supported resident per day for significantly expanded homes (up to 15 years)
• $224.3 million for dementia care supports, including expansion of the Hospital to Aged Care Dementia Support program from 11 to 20 locations nationally, and up to 20 additional Specialist Dementia Care Program units
• $33.8 million for greater flexibility in how room prices are set

The Government has also provisioned $1.1 billion in the Contingency Reserve for future spending to increase the Accommodation Supplement and introduce an additional payment for residential homes with high supported resident ratios.

This is the single largest new funding opportunity for NFP aged care providers in this budget. Watch for capital subsidy guidelines from the Department of Health, Disability and Ageing.

Better Care for Older Australians — EXPANDED

$565.1 million over four years from 2026–27 for strengthened regulatory, governance, quality and sector viability supports. Highlights include:

• $51.3 million in 2026–27 to extend aged care provider viability support programs
• $29.9 million over two years for the Regional Stewardship of Aged Care outreach model
• $7.2 million over four years for the Maggie Beer Foundation to improve food quality in aged care
• $6.7 million in 2026–27 for innovative respite support grants under the Support for Informal Carers program
• $2.4 million in 2026–27 for the Care Together program supporting cooperatives and mutual enterprises in aged, disability and veterans' care

Note: the Government will also achieve net savings of $133.0 million through revised cost recovery arrangements, with ACCOs receiving a fee waiver for registration and audit renewals under the Aged Care Quality and Safety Commission.

Disability — NDIS Reform and Thriving Kids

Thriving Kids — NEW (major opportunity for community services providers)

$2.0 billion over five years from 2026–27 (Commonwealth contribution; $4 billion total with state matching) to deliver the Thriving Kids program for children aged eight and under with developmental delay and/or autism with low to moderate support needs, and their families. Funding includes:

• $1.4 billion to states and territories to deliver Thriving Kids services
• $139.7 million to facilitate Thriving Kids services in early childhood education and care settings (held in Contingency Reserve pending design with states)
• $126.1 million for early identification through a Medicare-funded 3-year-old health assessment and expanded Comprehensive Health Assessment Program
• $120.9 million for national and local parent and family information, including a national phone line and autism information and advice helpline
• $99.5 million to empower parents and carers through the Mental Health in Primary Schools program, Positive Partnerships Program, and a National Digital Child Health Record
• $85.5 million to expand the 1800MEDICARE service to support families from preconception to eight years of age
• $60.8 million for workforce development and training, including dedicated First Nations workforce funding

This is a major new service delivery opportunity for NFPs working in early childhood, community health, autism support, and family services. Watch for state government grant and tender processes as Thriving Kids is implemented from 2026–27.

Securing the NDIS for Future Generations — REFORM

The Government will provide $1.7 billion over five years from 2025–26 for NDIS improvements, while implementing reforms projected to reduce NDIS payment growth by $37.8 billion over four years. Key reforms include:

• New Framework Planning from 1 April 2027
• Mandatory registration of high-risk NDIS providers ($182.6 million over four years)
• Commissioning of plan management and support coordination services ($49.4 million)
• Continued Fraud Fusion Taskforce ($280.1 million over five years)
• Eligibility changes based on functional capacity from 1 January 2028
• $15.9 million for Disability Representative Organisations to support community engagement on reform design

The Government has also provisioned $3 billion over five years for Foundational Supports outside the NDIS (matched by states) and $200 million over three years for an Inclusive Communities Fund to support community organisations delivering group-based social participation activities for NDIS participants (held in Contingency Reserve pending design).

🪶 First Nations — Closing the Gap

$793.7 million over five years from 2025–26 (and $176.1 million ongoing) for better outcomes for First Nations people under the National Agreement on Closing the Gap. Key measures include:

Jobs and Economic Participation:

• $299.0 million (and $161.7 million per year ongoing) to create an additional 3,000 jobs under the Remote Jobs and Economic Development (RJED) program, bringing the total to 6,000 jobs

Health:

• $144.1 million over two years from 2026–27 to continue urgent infrastructure needs of the Aboriginal Community Controlled Health Services (ACCHS) sector
• $44.4 million over four years from 2025–26 to extend Birthing on Country services
• $53.0 million over five years from 2025–26 to complete dialysis units and provide operational funding under Better Renal Services for First Nations Peoples
• $18.9 million over four years to continue and expand 13YARN crisis support, including new text-based support
• $2.7 million over three years for an additional cohort under the First Nations Health Worker Traineeship program

Education:

• $55.5 million over three years from 2026–27 for the Clontarf Foundation (2027 and 2028 school years)
• $30.0 million over three years from 2026–27 for the Australian Indigenous Education Foundation secondary school scholarships
• $23.8 million over two years from 2026–27 for the Indigenous Boarding Provider grants program (2027 school year)
• $2.2 million in 2026–27 for First Languages Australia to continue supporting Indigenous language journeys in primary schools

Community Infrastructure and Cost of Living:

• $32.7 million over three years from 2026–27 to expand the Store Efficiency and Resilience Package to an additional 75 remote stores
• $27.4 million over four years from 2025–26 to expand the Low-Cost Essentials Subsidy Scheme to all 225 remote stores across Australia
• $6.3 million over three years from 2026–27 for a national First Nations housing peak body

Governance:

• $42.8 million over five years to establish permanent statutory arrangements for the National Commission for Aboriginal and Torres Strait Islander Children and Young People
• $4.5 million in 2026–27 for the Coalition of Peaks secretariat

The First Nations FDSV investment ($218.3 million — Our Ways plan) is detailed in the Community Services section above. A new dedicated First Nations health schedule under the National Health Reform Agreement includes $200 million (matched by states) for co-designed health programs.

🏥 Health

National Health Reform Agreement — HOSPITAL FUNDING

$220.3 billion over five years from 2026–27 to the states and territories under the 2026–2031 Addendum to the NHRA, including $24.4 billion in additional NHRA funding and $200 million (matched by states) for a new Better Health Outcomes for Aboriginal and Torres Strait Islander People Schedule.

Strengthening Medicare — EXPANDED/PERMANENT

$2.1 billion over five years (and $599.6 million per year ongoing), including:

• $1.8 billion to fund all 137 Medicare Urgent Care Clinics permanently
• $119.3 million to extend the Practice Incentives Program Quality Improvement Incentive
• $54.5 million to continue Primary Health Network After Hours and Homelessness Access programs to June 2028
• $47.6 million (and $19.4 million per year ongoing) to increase Radiation Oncology Health Program Grants for concession card holders
• $25.3 million over three years for up to six fully bulk billing GP clinics in the Central Coast, Newcastle, Lake Macquarie and Hunter regions
• $2.8 million to continue Endometriosis and Pelvic Pain Clinics

Pharmaceutical Benefits Scheme — NEW LISTINGS

$5.9 billion over five years for new and amended PBS listings. $449.3 million to add the RSV vaccine Arexvy® to the National Immunisation Program for Australians aged 75+ and Aboriginal and Torres Strait Islander peoples from age 60.

Mental Health — EXTENDED

$277.5 million in 2026–27 to extend the National Mental Health and Suicide Prevention Agreement to 30 June 2027, including $78 million for Medicare Mental Health Centres, $4.9 million for universal perinatal mental health screening, $4.4 million for eating disorder supports, and $3.1 million for child and youth mental health support at public secondary schools.

Preventive Health — EXPANDED

$488.2 million over five years (and $107.8 million per year ongoing), including $431.0 million to extend the Federation Funding Agreement for Public Dental Services for Adults, and $10.8 million over two years to continue the Health in My Language program for refugee and migrant women.

🎓 Schools and Education

Improving Outcomes in Australian Schools — EXTENDED

$26.1 million over four years from 2026–27 extending programs including:

• The Online National Assessment Platform and NAPLAN ($18.2 million)
• Australian Academy of Science STEM programs ($1.8 million)
• Life Ed Australia preventative health modules, including mental health and respectful relationships ($1.7 million)
• The Smith Family's Let's Count preschool maths program ($1.5 million)
• CSIRO's STEM Professionals in Schools ($1.2 million)
• Australian Mathematics Trust's Curious Minds program for female STEM students in Years 8–10 ($0.7 million)

Supplementary Funding for the Inclusion Support Program — NEW

$54.8 million in 2026–27 for ECEC services to support the inclusion of children with additional needs.

Education Portfolio Savings — NOTE FOR GRANT SEEKERS

The Government will achieve $472.1 million in savings over four years by increasing compliance activities around students with disability loadings and ceasing undersubscribed student loan programs. NFPs and schools with disability funding should review their compliance obligations carefully.

🎭 Arts and Culture

National Cultural Policy — National Collecting Institutions — NEW

$23.0 million over three years from 2026–27 for three National Collecting Institutions:

• $10.1 million over two years for the Australian National Maritime Museum for safety repairs to its Darling Harbour wharves
• $9.9 million over three years for the National Film and Sound Archive of Australia to expand capacity to safely store nitrate-based cultural heritage material
• $3.0 million in 2026–27 for the Museum of Australian Democracy for centenary commemoration activities marking 100 years of Old Parliament House

Note: there are no new open competitive arts grants programs announced in this budget. Funding is directed to specific national institutions.

🏀 Sport and Recreation

Investment in Sport — EXTENDED

$404.8 million over two years from 2026–27 to continue Commonwealth sport programs, including:

• $307.4 million for high-performance initiatives and international sporting events
• $50.5 million in 2026–27 for Sporting Schools and participation grants programs and other Play Well initiatives — the key pathway for community sporting organisations
• $20.1 million for Sport Integrity Australia
• $14.4 million for the Water and Snow Safety program
• $2.4 million for Paralympics Australia for the 2028 Games

🏢 Business Grants and Support

Permanent $20,000 Instant Asset Write-Off — PERMANENT

The $20,000 instant asset write-off for small businesses (turnover up to $10 million) is made permanent from 1 July 2026. Estimated to improve cash flow by around $890 million over five years. Note: not a grant, but a significant ongoing tax benefit for small NFPs and businesses.

Supporting Small Business — EXTENDED

$8.2 million over three years to extend the Small Business Debt Helpline financial counselling program and the NewAccess for Small Business Owners mental health coaching program to 30 June 2027.

Defence Industry and Strategic Policy Sector Grants — NEW

$106.4 million over six years from 2026–27, including $59.1 million over five years from 2027–28 for an open competitive grant program to continue support for the strategic policy sector, and $47.3 million to extend the Defence Industry Internship Program and School Pathways Program.

Protecting Migrant Workers — EXTENDED

$27 million over two years from 2026–27 to extend the Protecting Migrant Workers — Information and Education grants program, supporting targeted information and education activities for migrant workers on workplace rights and protections.

🏗️ Community Infrastructure

Thriving Suburbs, Growing Regions and Stronger Communities — EXPANDED

$841.7 million over four years from 2026–27, including:

• $781.6 million over four years for further rounds of the Thriving Suburbs program and the Growing Regions program to deliver community infrastructure projects in urban and regional Australia
• $30.1 million over three years for round ten of the Stronger Communities Programme for small capital projects that deliver social benefits for local communities
• $30.0 million in 2026–27 toward construction of a new animal welfare campus for the RSPCA in the ACT

This is one of the most accessible grant opportunities for community organisations and local governments. Watch the Department of Infrastructure for upcoming rounds.

⚠️ Programs Being Cut, Redirected or Wound Down

Agriculture Grant Programs — SAVINGS

$104.6 million over five years by reducing uncommitted funding across grant programs including: Pest and Disease Preparedness and Response, Wine Tourism and Cellar Door, Agriculture and Land Sectors – low emissions future, Accelerated Adoption of Wood Processing Innovation, Support for Regional Trade Events, Empowering Australia (seaweed farming), and other trade-related grant programs. The Future Drought Fund is also reduced by $52.0 million over four years, and the Natural Heritage Trust agriculture stream by $35.0 million from 2028–29.

Apprenticeship Incentives — REFORMED

$297.9 million over five years in savings from reforming the Australian Apprenticeships Incentive System from 1 January 2027 and returning uncommitted grant funding. Incentives are redirected to small and medium employers and Group Training Organisations.

NDIS — SIGNIFICANT TIGHTENING

Reforms projected to reduce NDIS payment growth by $37.8 billion over four years. New Framework Planning from April 2027; eligibility changes from January 2028; commissioning of plan management, support coordination and home and living supports; tighter guidance on reasonable and necessary supports. NDIS payments will continue to grow each year.

Private Health Insurance Rebate Age Uplift — WOUND BACK

The age-based uplift to the PHI Rebate is removed from 1 April 2027, generating $3.0 billion in savings — reinvested in the residential aged care and home care measures above.

APS Digital Traineeship Program — CEASED

The APSC's Digital Traineeship program ceases, with $14.0 million in savings over four years.

Inland Rail — CONSOLIDATED

The Inland Rail project is being consolidated at Parkes, with $4.4 billion in equity returned to the Budget.

💡 What Grant Seekers Should Do Next

• Read Budget Paper No. 2 at budget.gov.au — the definitive source for all program names, eligible entities and amounts by portfolio.
• Watch GrantConnect (grants.gov.au) and our own Grants Directory — set up alerts for Social Services, Health/Disability/Ageing, Infrastructure and NIAA. Most new programs will appear there as guidelines are developed over coming weeks.
• For aged care NFPs: Contact the Department of Health, Disability and Ageing about the new capital subsidy program. The $30/day per supported resident subsidy for new builds begins on commencement of newly constructed homes.
• For disability and children's services NFPs: Begin engaging with state governments now on Thriving Kids service design. Watch for tender and grant opportunities from 2026–27. Plan for NDIS commissioning changes.
• For First Nations organisations and ACCOs: Multiple direct funding streams are available — RJED expansion, ACCHS infrastructure, Birthing on Country, 13YARN, Clontarf, Our Ways. Contact NIAA and the Department of Health, Disability and Ageing.
• For community housing providers: The $59.4 million youth housing subsidy is a direct program — watch for DSS/Treasury guidelines on eligibility criteria and application processes.
• For family and children's services NFPs: The Children and Family Support program ($171.7 million) commences 1 July 2027. DSS will release program guidelines — start positioning your organisation now.
• For community and sporting organisations: The $841.7 million community infrastructure package (Thriving Suburbs, Growing Regions, Stronger Communities) is your key opportunity. Watch the Department of Infrastructure.
• For agriculture grant recipients: Check whether your program is among those with reduced uncommitted funding and contact your department contact immediately.

In Summary

The 2026–27 Budget is a major investment in aged care, disability foundational supports (Thriving Kids), First Nations community programs, and housing for vulnerable young people — all areas of direct relevance to the NFP and community services sector. At the same time, the NDIS is being significantly reformed, private health insurance rebate savings are being redirected into aged care, and several agriculture and employment grant programs are being reduced.

The budget is not expanding the arts, renewable energy or environment grant landscape — those sectors see little new open competitive funding in this cycle.

The most important message for grant seekers: the budget is the announcement; the grant rounds, program guidelines and application processes follow over the next weeks and months. Get your governance, financials and program design ready so you can move quickly when opportunities open.

All figures and program details in this article are drawn exclusively from the official 2026–27 Budget Papers (Budget Paper No. 2, Budget Measures; Budget Paper No. 1, Budget Strategy and Outlook; and the Women's Budget Statement) released at budget.gov.au on 12 May 2026. Figures marked nfp (not for publication) in Budget Paper No. 2 indicate where the Government has not disclosed specific amounts for commercial or other reasons.