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.
Biggest new programs:
Important restructuring and savings:
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:
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.
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.
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:
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.
Improving Access to Home Care — NEW
$1.4 billion over four years from 2026–27 (and $377.3 million per year ongoing), including:
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:
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:
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.
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:
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:
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).
$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:
Health:
Education:
Community Infrastructure and Cost of Living:
Governance:
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.
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:
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.
Improving Outcomes in Australian Schools — EXTENDED
$26.1 million over four years from 2026–27 extending programs including:
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.
National Cultural Policy — National Collecting Institutions — NEW
$23.0 million over three years from 2026–27 for three National Collecting Institutions:
Note: there are no new open competitive arts grants programs announced in this budget. Funding is directed to specific national institutions.
Investment in Sport — EXTENDED
$404.8 million over two years from 2026–27 to continue Commonwealth sport programs, including:
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.
Thriving Suburbs, Growing Regions and Stronger Communities — EXPANDED
$841.7 million over four years from 2026–27, including:
This is one of the most accessible grant opportunities for community organisations and local governments. Watch the Department of Infrastructure for upcoming rounds.
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.
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.