FEDERAL BUDGET 2026-27 ANALYSIS
This analysis covers the 2026-27 Federal Budget across ten portfolios, with a focus on measures directly relevant to multicultural communities, newly arrived migrants, refugees, and humanitarian entrants. It draws on Portfolio Budget Statements (PBS) and Portfolio Additional Estimates Statements (PAES) across Home Affairs, Health and Disability, Social Services, Employment and Workplace Relations, Education, Attorney-General’s, Prime Minister and Cabinet, Treasury, Infrastructure, and Industry portfolios.
We The Government in the 2026-27 outlined a reform budget to rebuild confidence, expand opportunity and actively construct social and economic legitimacy for all Australians.
Australia’s diversity is a major strength and national asset. Migrants contribute significantly to workforce participation, innovation, and economic resilience. Diversity also strengthens Australia’s social fabric. FECCA, as the national peak body representing Australia’s culturally and linguistically diverse communities — more than half of the Australian population — sees multicultural Australia not as a peripheral policy consideration, but as central to our national strength and a critical partner in delivering successful reform across all portfolios.
As the Government undertakes significant investment in economic transformation, productivity, social cohesion and tax and budget reform, there is a substantial opportunity to achieve stronger outcomes and reduce long-term costs through strong partnerships with multicultural communities and organisations in the design and implementation of policy and strategic solutions.
Multicultural communities are deeply embedded across Australia’s workforce, care economy, small business sector, education system and civic institutions. Community-led and culturally responsive approaches consistently deliver stronger engagement, earlier intervention, improved service uptake, and greater public trust. These outcomes not only improve policy effectiveness, workforce participation, productivity, and long-term fiscal sustainability but also improve social cohesion.
Investment in multicultural capability should therefore not simply be seen as social policy, but as nation-building infrastructure that supports democratic participation, economic resilience, and institutional trust. FECCA, through its trusted relationships with communities across Australia, is uniquely positioned to support the Government in shaping and delivering reform that is inclusive, and nationally beneficial.
FECCA believes multiculturalism is at the heart of the reform and will significantly strengthen Australia culturally, socially and economically. Harnessing the knowledge, networks and capability of multicultural communities will be essential to building a more cohesive and productive and resilient Australia
We look forward to working with the Government, as our budget analysis indicates there have been significant gains but there is still significant work to do.
Download the FEDERAL BUDGET 2026-27 ANALYSIS document – at the top right hand side of this page.
Key Findings
What this budget gets right for multicultural communities
- $604.2 million Bondi response, welcomed as a demonstration of government capacity to stand with communities under threat.
- $25 billion public hospital funding reduces financial access barriers for all Australians including CALD communities.
- Bulk billing expansion and PBS co-payment cuts reduce medication costs for households with high chronic disease burden.
- $10.8 million Health in My Language program – the only dedicated CALD health investment in the budget.
- Medicare Urgent Care Clinics made permanent – free walk-in access benefits communities with lower private health insurance rates.
- $85.2 million to fast-track migrant trades workers into the workforce.
- $27 million over two years from 2026–27 to continue information and education activities to improve migrant workers’ awareness of workplace safeguards, protections and compliance measures related to migration law.
- $7.7 million to extend the Economic Pathways to Refugee Integration.
- Tax cuts and Working Australians Tax Offset reach the CALD working population.
- Dental services for adults are permanent – addresses an access gap for CALD communities.
What is missing or declining.
- Settlement services (Program 2.3 administered) down $148 million below actual 2025-26 expenditure – the government projects Status Resolution Support Services.SRSS caseload savings that have consistently not materialised, while humanitarian intake holds at 20,000 places.
- Multicultural Affairs declining by 28.1% over five years – real reduction in operating capacity.
- No new Social Cohesion investment in this budget to replace or extend the 2025-26 measure as it winds down to zero by 2028-29.
- AMEP being wound back -Budget Paper No. 2 confirms the transition is cost neutral, meaning eligibility cuts fund the replacement. Not a reform investment.
- Home Affairs savings measure: $16.9 million removed from portfolio over five years from uncommitted funding, redirected to other government priorities – confirmed in Budget Paper No. 2.
- Foundation Skills funding reaches zero by 2029-30.
- AHRC staffing reduced by 11 positions – real capacity contraction in racial discrimination and anti-racism body.
- No National Anti-Racism Framework funding.
- No Australian Human Rights Act funding.
- Health in My Language has no confirmed multi-year funding.
- No dedicated CALD investment in social services, DFV, or mental health.
- NDIS reforms will disproportionately impact CALD participants – no disaggregated modelling published.
- No dedicated CALD aged care investment despite growing need.
- Discontinuation of future Australia’s Economic Accelerator (AEA) funding.
- No dedicated funding stream for PHN Multicultural Access Funding.
- No dedicated investment in community-led media literacy in CALD communities.
Download the FEDERAL BUDGET 2026-27 ANALYSIS document – at the top right hand side of this page.
