‘Cut it entirely’: Economists tell Chalmers where to find savings

by · Australian Financial Review

Lea JurkovicEconomics correspondent
May 4, 2026 – 2.22pm

With the federal budget not expected to return to surplus for another decade, Treasurer Jim Chalmers is under pressure to curb government spending that economists warn is crowding out the private sector. In response, Chalmers has promised a savings package for the May 12 budget designed to shore up the government’s bottom line.

The centrepiece of these savings is the $22 billion windfall over the next four years stemming from the major NDIS overhaul announced by Health Minister Mark Butler last month. The changes include tightening eligibility and cutting social supports – moves projected to reduce the $50 billion program’s intake by 160,000 participants by 2030.

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Lea JurkovicEconomics correspondentLea Jurkovic is The Australian Financial Review’s economics correspondent, based in Canberra. Email Lea at lea.jurkovic@nine.com.au

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