Circulated by The Honourable Jim Chalmers MPTreasurer of the Commonwealth of Australia and Senator the Honourable Katy GallagherMinister for Finance, Minister for Women, Minister for the Public Service,Minister for Government Services of the Commonwealth of Australia For the information of honourable memberson the occasion of the Budget 2026–27 12 May 2026 2026–27 BUDGET PAPERS Budget Speech No. 1Budget Strategy and Outlook 2026–27Contains information on the economic and fiscal outlook,together with information on the fiscal strategy. No. 2Budget Measures 2026–27Provides a comprehensive statement on the budget paymentand receipt measures in the 2026–27 Budget. Provides information on the Australian Government’s financialrelations with the states, territories and local government. Contains information on resourcing for Australian Governmentagencies (including special appropriations, special accountsand a summary of agency resourcing). 2026–27 BUDGET RELATED PAPERS No. 1Portfolio Budget Statements Detailed information on the resources available and the plannedperformance of each Australian Government entity for 2026–27. Treasury acknowledges the Traditional Custodians of countrythroughout Australia and their connections to land, sea and community.We pay our respect to their Elders past and present and extend thatrespect to all Aboriginal and Torres Strait Islander peoples today. FEDERAL FINANCIAL RELATIONSBUDGET PAPER NO. 3 Circulated by and Senator the Honourable Katy GallagherMinister for Finance, Minister for Women, Minister forthe Public Service,Minister for Government Services of the Commonwealth of Australia For the information of honourable memberson the occasion of the Budget 2026–27 12 May2026 © Commonwealth of Australia 2026 ISSN 0728 7194 (print); 1326 4133 (online) This publication is available for your use underCreative Commons Attribution 4.0Internationallicence, with the exception of the Commonwealth Coat of Arms, third-partycontent and where otherwise stated. Thefull licence terms are available fromhttp://creativecommons.org/licenses/by/4.0/legalcode. Use of Commonwealth of Australia material under aCreative Commons Attribution 4.0Internationallicence requires you to attribute the work(but not in any way that suggeststhat the Commonwealth of Australia endorses you or your use of the work). Commonwealth of Australia material used‘as supplied’. Provided you have not modified or transformed Commonwealth of Australia material inany way including, for example, by changing the Commonwealth of Australia text;calculating percentage changes; graphing or charting data; or deriving new statisticsfrompublished statistics–then the Commonwealth of Australia prefers thefollowingattribution: Source:The Commonwealth of Australia. Derivative material If you have modified or transformed Commonwealth of Australia material, or derived newmaterial from those of the Commonwealth of Australia in any way, then theCommonwealth of Australia prefers the following attribution: Based on Commonwealth of Australia data. Use of the Coat of Arms The terms under which the Coat of Arms can be used are set out ontheDepartmentofthePrime Minister and Cabinet website(seewww.pmc.gov.au/honours-and-symbols/commonwealth-coat-arms). Other uses Enquiries regarding this licence and any other use of this document are welcome at: ManagerMedia UnitThe TreasuryLangton CrescentParkes ACT 2600Email:media@treasury.gov.au Internet A copy of this document is available on the central Budget website at:www.budget.gov.au.Printed by CanPrint Communications Pty Ltd. Foreword This Budget Paper presents information on the Australian Government’s financial relationswith state, territory and local governments. Contents Foreword.......................................................................................................................iii Part1: Australia’s Federal Relations...........................................................................1 Overview.......................................................................................................................................1AustralianGovernment funding to thestates................................................................................2Measuresaffecting payments to the states...................................................................................9 Part2: Payments for specific purposes...................................................................13 Overview.....................................................................................................................................13Health..........................................................................................................................................18Education....................................................................................................................................45Skills and workforce development.........