Where Every Dollar Goes: A $100 Budget Breakdown

The 2026 federal budget outlines a total expenditure of $833.2 billion, representing an increase of $47.5 billion. To illustrate the allocation of these funds, the budget can be visualized as a $100 snapshot, where the majority of spending is directed toward social security and welfare programs.

According to reporting from SBS News, social security and welfare payments account for 37.1 per cent of the total projected spending. This figure remains almost identical to the expenditure recorded in 2025.

Spending Allocations

Beyond social welfare, the federal government has allocated significant portions of the budget to health, education, and national security. The breakdown of these expenditures includes:

• Health: 16.4 per cent
• Education: 6.9 per cent
• Defence: 6.2 per cent

An additional 19.6 per cent of the budget is designated for other purposes, a category that includes the servicing of public debt and the provision of natural disaster relief. The remaining funds, categorized as all other services, cover expenditures for transport, energy, and housing.

Future Projections

Government forecasts indicate a continued rise in the share of spending dedicated to social support. Social security payments are expected to grow to nearly 40 per cent of all federal spending by 2030. This projected increase is driven primarily by rising demand for aged care services and disability support programs.

Revenue Sources

The federal government’s projected revenue is derived from several primary streams. Almost half of the total revenue is generated from individual and other withholding taxes. Here’s followed by contributions from company tax and the goods and services tax.

A smaller portion of the revenue, approximately 5.8 per cent, is collected through fees and taxes on visa applications, alcohol, tobacco, and petrol products.