Federal Budget 2026-27
The 2026-27 Federal Budget has been released, and it will impact us in a number of meaningful ways. Treasurer Jim Chalmers handed it down on 12 May 2026, and while there is genuinely good news in there, the picture is mixed depending on where you sit in the creative ecosystem.
Here is what you need to know.
Arts & Culture Funding
The government has committed $1.1 billion to arts and culture in 2026-27, with $4.6 billion forecast across the forward estimates. Creative Australia receives a $14.7 million funding increase, bringing its total to $326.5 million, with $286.9 million directed to grants and investment programs. Targets include support for 525 artists and organisations and $35 million specifically for First Nations artists. If you have been considering applying to Creative Australia, now is a good time to be active.
Screen, Games, and Digital Content
Screen Australia maintains $113.6 million in resourcing, supporting 225 new screen projects and $58 million in production investment. Digital games development remains in scope. However, the budgetpapers openly acknowledge structural pressures on the sector, including rising production costs, global streamer consolidation and declining commissioning activity. Funding is holding, but the environment is tightening.
AI and Creative Technology
This is arguably the most significant opportunity for those of us working at the intersection of creativity and technology. A $70 million AI Accelerator program has been announced, delivered through the Co-operative Research Centre model, with grants available in 2026 and 2027. If your practice or organisation touches AI, XR, immersive experience or digital content, this program is worth exploring seriously.
Tax Relief for Freelancers and Sole Traders
From 1 July 2026, the tax rate on income between $18,201 and $45,000 drops from 16 to 15 per cent, saving up to $268 this financial year and more in 2027. A new $1,000 instant work expense deduction is also available from 2026-27, meaning you can deduct up to $1,000 in work-related costs without keeping receipts. For many of us juggling multiple income streams and irregular expenses, this is a practical and welcome simplification.
Small Business Support
The $20,000 instant asset write-off has been made permanent, which is good news for studios, sole traders and small creative businesses investing in equipment or software. Loss carry-back provisions have also been expanded, allowing eligible companies to claim refunds against tax paid in the prior two years. From 2028-29, early-stage startups will also be able to access loss refundability in their first two years of operation.
Regional Arts
The Regional Arts Fund, Visions of Australia and Festivals Australia continue to receive support, though no significant new investment was announced for regional programs. For those of us working outside the major centres, this is a missed opportunity, and one worth raising with our advocates and representatives.
Looking Ahead
The government has also allocated $900,000 to begin planning a new National Arts and Culture Strategy, ahead of Revive expiring in 2027. This is a critical window for the sector to shape what comes next. We will be tracking this closely and will share more as it develops.
Overall, the budget offers real but modest progress for creative industries. The AI and technology funding stands out as a genuine growth opportunity, and the tax changes provide practical relief for independent workers. The structural challenges facing screen and independent production are real and will require more than funding to address.
We will continue to monitor how these measures roll out and what they mean for our community. If you have questions or want to talk through how any of this applies to your work, please get in touch.
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