South Australian federal politicians have delivered their verdicts on this week’s Federal Budget.
The Budget, handed down by the Albanese Government on Tuesday night, centres heavily on tax relief, fuel excise cuts, healthcare funding and housing affordability measures.
It includes a permanent $250 annual tax offset for workers from 2027-28, a new $1,000 instant tax deduction, and expanded Medicare levy relief expected to benefit more than one million low-income Australians, families, seniors and pensioners.
Reforms to negative gearing and capital gains tax are also aimed at making the tax system fairer for young Australians wanting to enter the property market. Tax concessions used by property investors for decades to maximise profits and offset losses will be restricted, with the Federal Government estimating around 75,000 properties will shift from investors to homeowners.
But regional MPs say major concerns remain around infrastructure, housing and long-term economic pressures.
Mayo MP Welcomes Regional Support but Warns Infrastructure is Falling Behind
Independent Member for Mayo Rebekha Sharkie said the Budget contained “some positive measures for regional Australia”, but argued rapidly growing communities are being overlooked when it comes to major infrastructure investment.
“Communities across the Adelaide Hills, Fleurieu Peninsula and Kangaroo Island are expanding rapidly, but infrastructure and services are struggling to keep pace,” Sharkie said.
She welcomed the Federal Government’s new $2 billion Local Infrastructure Fund — including $500 million earmarked for regional Australia — but questioned whether regional communities would receive funding proportionate to their population growth.
“Communities like Mount Barker, Strathalbyn, Victor Harbor and Goolwa are seeing significant housing growth, and that’s where infrastructure funding should be spent,” she said.
Sharkie also backed continued supplementary road funding for South Australia, describing regional roads as “critically important for freight, tourism and community safety”.
However, she raised concerns about several aspects of the Budget, including the future of fuel excise relief, changes to private health insurance rebates for older Australians, and the winding back of support programs for the wine sector.
“There’s no indication the Government will continue its cut in fuel excise and that will hit hard when the temporary relief ends at the end of June,” she said.
On healthcare, Sharkie labelled changes to private health insurance rebates for pensioners “mean-spirited”.
“A lot of people are incredibly frugal with their pensions just to maintain private health insurance,” she said. “This change will likely see a lot of older Australians lose their ability to hold private health insurance and that will have a huge impact on our public health system.”
“It’s difficult to see the positive long-term reform story for the country in this Budget, particularly for regional Australia.”
Hear Rebekha Sharkie talking to Chris Guscott about the 2026/27 Federal Budget:
Barker MP Attacks “Higher Taxes and More Debt”
Liberal Member for Barker Tony Pasin launched a blistering attack on the Budget, accusing the Albanese Government of presiding over “higher taxes, more debt, more division and no plan to restore Australians’ standard of living”.
“After five Labor Budgets, Australians are paying more, working harder, and going backwards,” Pasin said.
He argued the Budget confirmed Labor was now “the highest taxing government in Australia’s history” and claimed families across regional South Australia were already worse off.
“The Budget confirms that living standards will go backwards again, confirming those with a typical mortgage are $32,000 a year worse off under Labor even after this Budget,” he said.
Pasin pointed to inflation, debt levels and housing pressures as evidence the Government has lost control of spending.
“This government is the master of betrayal. They promise savings in one breath and then spend more in the next,” he said.
He also criticised the absence of new infrastructure commitments for Barker.
Hear Tony Pasin talking to Jennie Lenman about the 2026/27 Federal Budget:
Labor Defends Budget as “Taking Pressure Off Australians”
South Australian Labor Senator Marielle Smith defended the Budget as a targeted response to ongoing cost-of-living pressures, saying the Budget’s focus is ensuring the hard work of South Australians’ pays off.
“We’re rolling out more tax cuts now plus an extra $250 off working Australians’ tax bills permanently,” Senator Smith said.
The Senator highlighted the Government’s proposed $1,000 instant tax deduction, saying approximately 450,000 South Australian workers will benefit.
“We know that absolutely every bit of help matters right now,” she said.
Senator Smith said the Budget was designed around “intergenerational fairness”, economic resilience and investment in essential services such as Medicare.
“This budget is about resilience in our economy, it’s about providing cost of living support and investing in the things that matter like Medicare,” she said.
“I’m proud of what this budget will deliver for South Australians, especially when it comes to cost-of-living relief and the support it provides to help young South Australians buy a home.”
