Despite allocating $1.2 billion for Closing the Gap initiatives, the 2026 federal budget has been criticized by First Nations organizations as a "missed opportunity" to create meaningful change. Treasurer Jim Chalmers described the budget as building a "stronger, fairer" economy, but Indigenous experts disagree.
Key Budget Allocations for Indigenous People
- $299 million for 6,000 new jobs by 2030 via the Remote Jobs Economic Development program.
- $27.4 million to reduce grocery costs in remote communities, plus $32.7 million for food storage.
- $48.3 million for Aboriginal Hostels Limited for short-term accommodation.
- $144.1 million for Aboriginal Community-Controlled Health Services infrastructure.
- $44.4 million for 10 Birthing on Country services.
- $18.9 million for 13YARN, a 24/7 crisis support line.
Housing Concerns
Changes to capital gains tax and negative gearing are expected to raise $3.6 billion over five years, potentially helping 75,000 Australians buy homes. However, renters may face $2 weekly increases, impacting over half of Indigenous households. Shaun Middlebrook from the Australian Housing and Urban Research Institute warns that discrimination and unaffordability in the private rental market will likely worsen for First Nations people. The budget includes $6.3 million for a national First Nations housing peak body, but Middlebrook says it "falls short."
NDIS and Disability
Damian Griffis, CEO of the First Peoples Disability Network, criticizes the budget for lacking detail on Indigenous people with disability. Over 60,000 Indigenous participants are on the NDIS, primarily for intellectual disability and autism. Griffis calls for more consultation and measures against fraud targeting remote communities.
Stolen Generations Recognition
A positive step: $3.2 million over four years to exempt Stolen Generations Redress Scheme payments from aged care means testing. Healing Foundation chair Steve Larkin calls this "welcome but overdue," though concerns remain about in-home aged care costs for First Nations elders.
Early Childhood and Education
$113 million for First Nations education includes $55.5 million for the Clontarf Foundation and $30 million for Indigenous scholarships. However, Catherine Liddle of SNAICC says the budget fails to secure funding for early childhood programs, noting that only a third of Indigenous children start school developmentally on track.
Legal Services
Nerita Waight of NATSILS states First Nations people were "ignored," with no new funding for legal services, forcing them to turn clients away. She highlights that incarceration costs far exceed prevention investments.
Overall, while some measures are welcomed, the budget is seen as falling short of addressing systemic issues for First Nations communities.
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