China’s young rising stars, their commercial value and the brands that are collaborating with them
Earlier this year, Kris Wu, 27, a Chinese singer and actor made history by becoming the first artist from mainland China to perform at the Super Bowl. The NFL also named him official Super Bowl LII ambassador for China. As one of the most influential young celebrities in China, Kris is also the first non-British brand ambassador for Burberry, and ambassador for the 2017 NBA All-Star Game in New Orleans.
To target the world’s most populated market and to be better engage with over 200 million millennials in China, more and more multinational brands are collaborating with young Chinese celebrities. Especially those with high commercial value and significant social media influence. For example; Michael Kors partnered with Yang Mi, while Bally is working with Tang Yan, and Lancôme choose Zhou Dongyu as a brand ambassador.
Isentia’s recent social media analysis report “The hottest young Chinese celebrities that luxury brands should be following” reveals some of China’s young rising stars that may be next on the brand collaboration watch list, given their commercial value, reputation and highly visible lifestyle.
Download the full report now or read on for a sneak peek!
Case study:
SK-II partner with Leah Dou (窦靖童)
Leah Dou, born in 1997, is the youngest brand spokesperson for SK-II. Known for her rebellious, edgy but also cool attitude, including a distinctive chin tattoo, Leah is somewhat of a departure from the Japanese skincare brands traditional brand representatives.
As the daughter of China’s famous musician Faye Wong and Dou Wei, Leah is a unique Chinese celebrity and according to Isentia’s analysis, after a month from the launch of the “Your statement, your bottle” SK-II campaign, it contributed to 21% of SK-II’s social buzz.
In the past two years, SK-II has increased its marketing efforts in China by leveraging e-commerce and social media tactics crafted for the local market. SK-II’s Changing Destiney campaign has successfully aroused resonance among the Chinese consumers, and sales roared 50% in 2016 from April to December.
Tinna Nien , SK-II’s senior PR manager said in a media interview that to quickly adapt to the China market demand and tap into the millennial consumers, SK-II works with Leah to create diverse brand images, as she is not just represents young consumers but also symbolizes independent values.
However, the collaboration didn’t work for everyone. According to Isentia’s social media analysis, netizens expressed an ambivalent view on choosing Leah Dou as a brand ambassador as they felt she wasn’t a ‘right match’ with the brand. Sentiment then hit bottom and also triggered discussion around the push to be ‘younger’ and label those over 25, unmarried to be ‘leftover women’. Large amounts of Key Opinion Leaders (KOLs) however continued to blast positive articles and posts towards the SK-II x Leah Dou collaboration and KOLs followers expressed supportive opinions. The sentiment peaked and lasted around 10 days. Over 114 KOLs leveraged for promoting #‘生而由我,从心所欲BE THE PERSON YOU DECIDE TO BE #, SK-II seamlessly leveraged the KOLs to promote Tmall, Duty free and offline promotions.
China’s top rising stars:
So who are the ones to watch?
The raising social media e-commerce and fan economy creates a new direct-to-consumer model that enable brands efficiently convert the leads. In Chinese, people call the celebrities who are good at promoting and selling products via social media to their fans ‘Dai Huo Huang Di or Huang Hou’ (King or Queen of product sales). According to Isentia social media analysis, the brand or event co-mentions ratio of King or Queen of product sales could up to 20% to 40%.
Using our powerful media listening tool, along with bespoke framework and extensive keyword iteration list, Isentia’s award winning media analysis team identified the latest popular influencers based on real data and their ability to impact sales through brands collaborations.
Celebrities born after the 1990s have become popular on Weibo since they garnered high buzz volumes thanks to TV dramas and shows. “孟子坤 Meng Zikun”, “周震南Zhou zhennan”, “马伯骞 Ma bosai” and “赵天宇Zhao tianyu”, were all known thanks to the TV show “The coming one” (明日之子.
To view the full celebrity rank and download the full report, please visit:
Loren is an experienced marketing professional who translates data and insights using Isentia solutions into trends and research, bringing clients closer to the benefits of audience intelligence. Loren thrives on introducing the groundbreaking ways in which data and insights can help a brand or organisation, enabling them to exceed their strategic objectives and goals.
Another year draws to a close and 2018 fast approaches, but it's business as usual at Isentia offices across the globe. Mediaportal is now available in Korea and Taiwan, and Asia Pacific continues to be a highlight for Isentia’s Media and Intelligence business.
We spoke with David Liu, Chief Executive, Asia, and Sean Smith, Chief Executive Media & Intelligence, to get their insights on how Isentia will continue their expansion into Asia.
Isentia's growth in Asia Pacific has been positive for the business for some time. With the recent launch of Mediaportal in Korea and the addition of Taiwan to the portfolio, can you share your thoughts on the journey in Asia so far?
David: From my point of view, if any company wants to launch in a new country, the key is a flagship brand, or product. What we would like to see is Isentia moving from more than just a company name but to a strong and recognisable brand. The exciting aspect about our future in Asia now is that we have a product that can really help us to build our presence in the market. The launch of Mediaportal in Korea and Taiwan really marks the beginning of a new chapter in the launch of Isentia in Asia.
Mediaportal is a very powerful tool that provides a lot of clarity to our clients on what our capabilities are. Anybody can say ‘we monitor media’ but with Mediaportal, what we can do means so much more and it’s going to make it easier for us to continue to build the brand in the region.
Especially with the capabilities Mediaportal brings: • Metadata applied to local sources • Multilingual content when it’s available • A user interface in English, Korean and Traditional or simplified Chinese
Having this portal in very unique countries like Korea and Taiwan, where the media landscapes are not in line with any other international market, gives us the insight and confidence to expand our services further and faster. As a business we haven’t actually changed anything that we can do at the core, but it’s much easier for the team to tell the story of what we can help clients achieve.
How have clients received Isentia’s new product offering in Korea and Taiwan?
David: The reception in Korea has been incredibly positive. The fact is, the decision making processes in companies in these markets are typically longer than most countries, so there’s still a lot of opportunity there for us to sign on more clients than we already have. I’m confident it’s going to be a real breakthrough for us.
Taiwan is just as promising! We’ve recently launched and already signed our first round of clients. They’re coming over from competitors after seeing a demo of a prototype. So you can see that there was already a buzz building there. Of course, the client services team are really excited about Mediaportal, too.
Sean: The other key point to add to this is that this is the first time we’re taking a single platform approach to Asia. We’re simplifying what we do by retiring a series of smaller platforms and outputs & providing a superior, whole-of-company approach. In doing this we will give our clients the best media intelligence service and make it more seamless to our clients to go get regional or global servicing.
The important thing to emphasise again is that we’re delivering a Mediaportal experience which has been adapted to the client needs of each market. Mediaportal will have a multilingual UI and be able to receive content and data from any Asian language.
Sean, I know you’re heading over to Hong Kong and China really soon, can you tell us a bit more about what that trip will entail?
Sean: My time in Hong Kong and China will focus on getting both these markets ready for Mediaportal. There’s a big change management process that David and I need to work through in order to enable our teams and ensure a successful release of Mediaportal.
Launching in Korea and Taiwan was exciting because both were new markets, and there was no legacy to contend with. This isn’t the case when we go live in Hong Kong and China. We’ll introduce a new platform, and a key challenge will be enabling our people and clients so that Mediaportal is easy for them and improves the service. We already deliver the market leading media intelligence service in Korea, Taiwan, Australia and New Zealand. We now want this to be the reality in Hong Kong and China.
So we are coming together to build the internal culture and knowledge. What David brings is the skills, expertise and leadership in doing business in Asia, while I bring my experience in Media and Intelligence – we meet in the middle and will work towards a shared goal of releasing Mediaportal in Hong Kong and China and all other markets. Isn’t that the plan David?
David: [laughter] We’re really happy with the way we have structured this because what we have is someone who really understands Mediaportal through his experience and leadership in Media and Intelligence. The support in implementation, positioning and communicating the value of Mediaportal is fantastic and will really help our teams to expand their knowledge.
David: Well as you you’ve already pointed out, the landscape has been rapidly changing and becoming more digitized. I think the difference in Asia is that the capturing of data is actually easier than before because there is less print (print media requires more complexity to capture and costly) and maybe less in broadcast. A notable change in the media landscape is that there is more online news and social –with the digital growth, everything is moving on to the cloud. If you’re not using a platform with the power of the cloud, how will you contain all the data?
Another key point, as well as fast paced growth, is the demographics across the Asian population. For the most part, it is a younger subset. For example the median age of the Vietnamese population was 30.4 years in 2015. This has a big impact on the adoption curve to digital and how media is consumed now and into the future.
What does it take to succeed? And what can we do to bring all that together?
Sean: We know Mediaportal is a great product and that our clients in other markets use it successfully every day to help manage the media and stay informed. Getting the change process right will be critical. We need to make sure our people become experts at using Mediaportal and understand how to show case to our clients so that they can see the benefits it will bring to them as professional communicators.
Secondly the media market is very different in Asia, not just as a region, even as we look country to country. As David has pointed out it is more digitally driven – so online news and social media will be key. Isentia has always had depth of content and data and in Asia this will be no different. In addressing this, we have got to be smarter – the volumes of data in Asia are infinitely bigger. Managing volume and noise for our clients is that we do, by getting the relevant sources to our clients at the right time.
Can you outline what each of you view to be the key competitive advantages that Isentia have over other key players in market?
Sean: We have the greatest reach and can provide our clients with the relevant content and data that they need to stay informed. We do this through a single platform (Mediaprotal) and clients can access this through the web, mobile apps or any device. Importantly Isentia monitors any media type - whether it is print, broadcast, radio or online news - we cover it all. Our clients will have the confidence that they are fully informed. This is unique, as what I see of most other players in the market is they only cover one or two media types.
Another key difference is what Isentia does with all that content and data, through our relevance engines. We make sure that we get the right information to our clients at the right time. We shield them from the noise!
Lastly, it is the strength of our people, we are local and operate in every country. Our teams will understand the media landscape and clients in each country individually.
How do you both collaborate and come together to bring some of Isentia’s strategic objectives to life?
Sean: We talk all the time! We have regular meetings and when needed I spend time in Asia. We stay connected and touch base on all the important points and have very open and robust conversations about what we need to do.
Again, we both bring different strengths to this partnership. David has the Asian knowledge, like people and sales, whereas I bring a range of experience across media intelligence, and that’s how we build a better business.
David: I think we have only one goal and is to make sure that we deliver the best client experience – that is how we really grow Isentia. We understand the client needs locally and I think Sean and his team contribute different industry knowledge and product insights so that our teams can deliver.
“Powered by Technology. Inspired by people” – What does this mean to you?
David: We’re in the business to help clients solve problems. We need our people to understand the client problem and the approaches we can take to help them solve it. But when it comes to implementation, we need technology to help with the complex media landscape world. I doubt any company successfully performs without technology and people going hand in hand.
Sean: I think it’s getting the best out of both. Our service is powered by technology, especially when you talk about the scale and volumes we now encounter. Our people help guide our clients through that busy 24/7 media landscape, and add value to what technology cannot already do.
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Blog
Breaking Boundaries In Media Intelligence
Another year draws to a close and 2018 fast approaches, but it’s business as usual at Isentia offices across the globe. Mediaportal is now available in Korea and Taiwan, and Asia Pacific continues to be a highlight for Isentia’s Media and Intelligence business.
Omni-channel marketing provides a seamless experience, regardless of channel or device. This allows customers to engage with a company in a physical store, a website, mobile app or social media.
With more than 600 million internet users and more than $US899 billion in online spending, China is the world’s biggest online shopping market and one of the most digitised countries. As the e-commerce market continues its meteoric rise, it's now more important than ever for businesses to implement omni-channel marketing strategies that deliver a consistent experience across online and offline platforms.
Whether it’s insurance or luxury brands, the omni-channel marketing experience is essential for businesses looking to thrive in China.
A look at the e-commerce landscape in China today
A report by EY found that in 2010 only 23 per cent of China’s urban population shopped online. Last year, China’s consumers accounted for 42.8 per cent of the world’s e-commerce sales and this is projected to rise to nearly 60 per cent in 2020 – almost triple what it was a decade prior.
The increase in smartphones in China has contributed to this growth in e-commerce. The same EY report found that in 2014, there were more than 780 million active smartphone users across the nation, and around 25 per cent of customers made purchases through their mobile phone on a weekly basis. Even in rural areas, which have less than 20 per cent internet penetration, more than 60 per cent of consumers are e-commerce users.
Tips on creating a successful omni-channel marketing strategy
Given the prominence of e-commerce in China, it’s essential to have a strategy in place that creates a seamless experience across third-party websites, your own website and any bricks-and-mortar stores you may have.
If you want to implement an omni-channel marketing strategy for your business in China, here are a few tips to help it thrive.
1. Be on third-party websites, but do it well.
China’s top 10 favourite websites are all e-commerce sites – including TMall, JD, 51Buy and Amazon China. In order to reach the maximum number of consumers, it’s important to be on third-party websites. To protect your own brand identity and image, it’s vital to collaborate with third-party providers to make sure your brand’s merchandising, pricing and product descriptions are consistent with your other sales channels.
2. Ensure a consistent customer service experience.
As customers access your business through multiple touchpoints, it's essential that their experience is the same no matter where they go. Whether a customer orders from TMall, receives their product from a third-party delivery company or complains over the phone, it’s imperative they receive the same level of service to avoid conflicting experiences with your brand. To do this, identify the key touchpoints with customers in your business, and focus on creating processes and controls to ensure these experiences are up to your business’s standard. It doesn’t hurt to try a mystery shopper either, to help you identify any holes.
3. Focus on the data.
Consumers behave differently on third-party websites than they do in stores, over the phone and at an online store. In order to ensure you’re getting the most out of your different sales channels, dive into your data to see which channels are performing best and where further investigation or improvement needs to be made. Key insights to look for include abandoned shopping carts on your own website versus on third-party websites, which products are popular on different channels, satisfaction rates and exchanges or returns on third-party sites versus your own.
Ultimately, China’s growing e-commerce market holds an incredible amount of promise for local and global businesses.
With the right omni-channel strategy and attention to market innovations, businesses stand the best chance of capitalising on the booming online shopping industry.
What 71 stories, 400+ perspectives, and 50 million audience impressions reveal about the media narratives shaping the 2026–27 Federal Budget.
The 2026–27 Federal Budget was released on 12 May and included some of the most ambitious policy changes in years.
Labor Treasurer Jim Chalmers described it as a budget of ‘reform and resilience’, and the media coverage that followed reflected just how much there was to unpack.
We used Lumina, our AI-powered media intelligence suite, to surface the biggest stories, map different perspectives, and identify the key drivers behind each narrative. This clustered over 48 hours before and after the Budget into 71 different stories, more than 400 perspectives and the total audience reach topped 50 million cumulative views.
Below are the five stories that stood out, what the different perspectives tell us, and what communicators should be watching out for.
Key stories at a glance
▸ Property Tax Reform — Two evenly matched perspectives: affordability for buyers vs. reduced housing supply. Key drivers: Anthony Albanese, Jim Chalmers, Master Builders Australia, Property Council
▸ The Policy Reversal — Government says circumstances changed; opposition says trust was broken. Key drivers: Angus Taylor, Bill Shorten, Peta Credlin, Sean Kelly
▸ NDIS Changes — Sustainability concerns meet advocacy from families and disability organisations. Key drivers: Katy Gallagher, People with Disability Australia, ACOSS
▸ Market Reaction — Investors moved ahead of the speech; banks fell, miners rose. Key drivers: BHP, CSL, DroneShield, Tony Sycamore (IG)
▸ Small Business Support — Permanent write-off welcomed, but owners want more help with rising costs. Key drivers: Jim Chalmers, CPA Australia, Xero
Australia’s biggest property tax change in a generation
The centrepiece of this budget was a major overhaul of property investment tax. It was the most covered story of the night, and the perspectives on the announcement were split right down the middle.
The Government positioned the reforms as a step toward fairness. Negative gearing will be restricted to newly built properties from July 2027, and the 50% CGT discount will be replaced with an inflation-indexed model.
Furthermore, a 30% minimum tax will now apply to distributions from discretionary trusts. Treasurer Jim Chalmers and Prime Minister Anthony Albanese reiterated that these changes will aid a projected 75,000 Australians to buy their first home over the next decade. This perspective accounted for about 50% of coverage across the story (ABC Online).
Industry groups like the Master Builders Australia and the Property Council warned the changes would reduce new housing supply by 35,000 homes, push up rents, and discourage investment.
These perspectives made up approximately 50% of total coverage. That near-perfect split is notable. In most policy debates, one side tends to lead in terms of coverage, yet here, the two perspectives are running neck and neck
That balance tells us the debate around these reforms is far from settled. Neither side has won the narrative.
Why it matters for communicators: This is going to be a long-running conversation. Both sides have credible data. If your organisation has a stake in property, construction, or financial services, now is the time to develop your position and prepare for sustained engagement.
The policy reversal and what it means for trust
Behind that policy detail, however, was a more political story. The government had made promises before the 2025 election that it would not change negative gearing or CGT. This budget announcement made changes to both policies, and the coverage explored what that means.
The Government’s explanation around the changes took up about 43% of coverage. Previous Labor Minister and now Vice-Chancellor of the University of Canberra, Bill Shorten argued that the housing situation had worsened since the election ,and the government had a responsibility to act. Unsurprisingly, Prime Minister Anthony Albanese held the same position. In his interviews, Shorten pointed to the earlier redesign of the stage three tax cuts as an example of a policy change that voters ultimately accepted.
Political commentators offered an analytical view, making up about 40% of coverage. Former Labor adviser Sean Kelly and others noted that the fallout from changing a position depends on context, and that history offers examples of both successful and costly reversals.
The opposition’s framing accounted for about 18% of coverage so far, as we wait for their formal response to the Budget next week. Liberal leader Angus Taylor and his colleague Michaelia Cash described the move as a trust issue. A leaked government document giving Labor MPs talking points to explain the change added another dimension to the story (The Australian).
Why it matters for communicators: Past commitments stay in the public record. For communicators working on policy-related messaging, it’s worth thinking about how your stakeholders weigh trust against outcomes, especially as this story continues to develop.
NDIS changes spark a deeply personal conversation
The NDIS story stood out in Budget coverage for a different reason. It was one of the most emotionally resonant conversations of the night.
The government framed its changes as essential for the scheme’s long-term sustainability, and this perspective made up about 58% of coverage. Ministers pointed to cost growth and fraud as reasons to tighten eligibility, with the Fraud Fusion Taskforce positioned as the mechanism to protect genuine participants while saving $37.8 billion over four years (Sydney Morning Herald).
Disability advocacy groups responded with concern, accounting for about 42% of coverage. Organisations like People with Disability Australia highlighted that over 160,000 participants could be affected, many of them children.
The Australian Council of Social Services (ACOSS) noted the budget also lacked additional support for people on income support. By budget night, advocacy groups had organised a press conference and gathered more than 13,000 petition signatures. This was a story where the personal weight of the coverage mattered more than the volume.
Why it matters for communicators: Personal stories and advocacy will shape this conversation more than policy. If you work in health, disability, or social services, this is one to monitor closely and maintain the human element in the approach.
The market moved before the speech
One of the more interesting stories of budget day was how the share market reacted before the Treasurer even stood up to speak.
The ASX 200 fell across the day. Banks were under pressure because of their exposure to residential mortgages, with analysts pointing to the risk of falling property prices if the tax reforms reduced investor demand.
Rising oil prices from the Middle East added to the mood (NEWS.com.au). And earlier in the week, Australian stock market stalwart CSL dropped over 16% on a separate profit warning, dragging the healthcare sector with it.
But mining stocks went in the opposite direction, with BHP hitting a record high on strong commodity prices for copper and iron ore. Different parts of the economy were reading the same budget in very different ways.
Why it matters for communicators: When investors move before an announcement, it tells you the narrative is already established. For organisations with listed exposure or investor-facing communications, the property reform story is one to address proactively.
Small business: welcome news, but not the whole answer
Making the $20,000 instant asset write-off permanent was a positive headline, but the coverage revealed a gap between the announcement and business owners’ lived experience.
The government’s framing dominated, making up about 75% of coverage. The write-off sat alongside a broader $3.5 billion tax relief package, which Treasurer Chalmers called part of the most comprehensive productivity push in decades.
But the remaining quarter of coverage tells a different story. Xero research showed only 35% of small businesses were confident the budget would address their challenges. Many described the $20,000 threshold as too low for the investments they actually need to make, especially given rising fuel and material costs.
The broader sense was that while the write-off is helpful, it doesn’t change the fundamentals of a tough operating environment.
Why it matters for communicators: Headline announcements and on-the-ground sentiment don’t always match. For industry groups and advocacy organisations, grounding your messaging in real-world experience will resonate more than repeating the numbers.
Looking at the budget through comms: what does it mean for strategy and messaging?
There are two factors that emerge as key considerations.
First, the property tax conversation is set to continue for the months ahead. Both sides have credible arguments and strong stakeholder backing; these sentiments will undoubtedly be reinforced by the Opposition next week. If your organisation is connected to housing, property, or financial services in any way, a long-term narrative strategy will serve you better than a one-off reaction.
Second, keeping an eye out for how the election reversal narrative evolves is important. It will become a reference point for future government commitments. For anyone working on government-related messaging, it’s worth considering how your audiences balance trust with outcomes. Media outlets are actively searching for inconsistencies – as are social media users – so any change must be clearly explained and a credible narrative developed.
How budget perspectives shape the media landscape
The 2026-27 Federal Budget was a budget that asked big questions and looked to a new future. The media coverage showed a public working through what these changes mean, with perspectives spread evenly across the biggest stories of the night.
For communicators, the value is in looking beyond the headlines. Understanding the different perspectives, the people and organisations driving them, and the patterns connecting them is what turns a reactive media response into a strategic one.
To explore these kinds of insights for your own industry, discover what Lumina can surface for you. For more insights from the Isentia team, fill in the form below and we’ll get in touch.
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Blog
The latest stories and perspectives from a budget that broke the rules
The 2026 Federal Budget has landed, and what PR and comms professionals need to observe is how the media conversation has split into dozens of competing narratives depending on who’s telling the story.
Isentia’s budget night analysis of stakeholder reactions straight from lock-up this evening in Parliament House as they addressed the Conga-line, along with fresh analysis of key media releases from a range of sectors.
The 60-Second Summary
The 2026 Federal Budget is a story of broken promises and big bets. The Labor government went where it said it wouldn’t in the last election just 12 months ago, scrapping the 50 per cent capital gains tax discount, winding back negative gearing on existing properties, and imposing a 30 per cent minimum tax on discretionary trusts.
The dominant mood from stakeholders? Split right down the middle. Unions and social services groups cheered what they called a once-in-a-generation rebalancing of the tax system. Business groups, property investors, and the Coalition called it a betrayal that will scare investment offshore.
Behind the tax headlines, the Budget committed an additional $14 billion over the next four years and $53 billion over the decade to defence, $25 billion in extra public hospital funding, $14.8 billion for fuel security, and $2 billion for housing enabling infrastructure. But the cuts were deep, in particular the $37 billion savings from the NDIS.
For many, this is a budget of trade-offs: young homebuyers gaining ground, while older Australians and people with disability are left anxious about what comes next.
Independent Senator David Pocock’s initial reaction to the Budget commended the Treasurer on many elements, however Pocock noted changes to gas company taxes were sorely missing.
Senator Pocock said many Australians will be looking at the Government’s Budget and wondering why it didn’t put their best interests ahead. “When you read through the budget papers, clearly, it sucks to be poor, it sucks to be old, and it sucks to be a native species. And we have to make sure the Australian Government is spending its money on the priorities the Australian people want”.
Key Numbers at a Glance
Defence spending
$14 billion over the next four years and $53 billion over the decade, along with other measures, brings total funding in the portfolio to $887 billion to 2035-36
NDIS savings
$37 billion in cuts
Public hospital funding
$25 billion additional
Fuel resilience package
$14.8 billion
Housing infrastructure
$2 billion for 65,000 homes
Working Australians Tax Offset
$250 per worker
Sector Scorecards
Tax & Cost of Living [Mixed]
The headline reforms in this budget are all about tax. The government replaced the 50 per cent Capital Gains Tax (CGT) discount with an inflation-indexation model capped at 30 per cent. They went further - restricting negative gearing to new builds (limited to two properties), and imposing a 30 per cent minimum tax on discretionary trust distributions.
Dubbed as ‘once in a lifetime’, tax reform proposals include the introduction of a permanent $250 Working Australians Tax Offset, and cuts to the low-income marginal rate from 16 to 15 per cent (dropping to 14 per cent in July 2027). These CGT and negative gearing changes are forecast to raise $3.6 billion in their first two years.
The Australian Council of Trade Unions (ACTU) welcomed the measures as a generational rebalancing. ACTU President Michele O’Neil said this Budget was about fairness, giving workers a better shot at housing and ending a system that taxed work harder than wealth.
But the Australian Chamber of Commerce and Industry (ACCI) warned the changes would drive investment offshore. ACCI acting CEO, David Alexander said matching spending blowouts with tax hikes would lock in a slow-growth economy.
The Business Council of Australia (BCA) took a middle path, welcoming productivity measures but flagging concern about the CGT and negative gearing changes making Australia less competitive.
“Higher taxes will scare away investment in Australian businesses and send this funding to more welcoming overseas jurisdictions,” said Mr Alexander.
Queensland Independent Senator Bob Katter called the low-income tax cut so small it “doesn’t even buy a beer” and accused the government of breaking its promise not to change CGT and negative gearing.
The Australian Industry Group’s, Innes Willox noted Australia now has among the highest CGT rates in the world, however Australian Council of Social Service (ACOSS) CEO Dr Cassandra Goldie broadly welcomed the tax reforms. Goldie did however criticise the $250 tax offset, saying it was ‘going to everyone in paid work while 4 million people on the lowest incomes; those on JobSeeker, Youth Allowance, the Disability Support Pension got nothing’.
Housing & Property [Mixed]
Housing dominated the Budget narrative yet again. The CGT and negative gearing changes were framed as the government’s answer to the affordability crisis, backed by $2 billion in water, roads and sewage infrastructure to support 65,000 new homes over the next decade.
A $60 million National Youth Housing Supplement will unlock social housing for over 4,000 young people, fixing a long-standing “youth housing penalty”, making young tenants financially unviable for community housing providers.
Homelessness Australia CEO, Kate Colvin called it a hard-won win for young people failed by a system that catches them in crisis, yet never houses them. The Australian Community Housing sector’s Mark Degotardi said the Budget restores balance to a housing system long overdue for reform.
But others were sharply critical. Master Builders Australia CEO, Denita Wawn said the government’s own modelling showed the tax hike would reduce supply by 35,000 homes, and even with productivity measures adding 65,000, the net gain of 30,000 was nowhere near enough when Australia already falls short by around 200,000 homes. The Property Council’s Mike Zorbas called the tax changes a roll of the dice, warning the government must closely monitor investor behaviour.
“If the tax hike on property had not been introduced tonight, we would instead be up by over 100,000 homes over 10 years,” said Ms Wawn.
The Greens were scathing from the other direction, saying property investor tax perks were largely intact, with around 95 per cent of the benefit remaining, and no new money for public housing.
Healthcare & Medicare [Mixed]
The budget proposed $25 billion in additional funding for public hospitals under the new National Health Reform Agreement and introduced a three-year-old health check through GPs, funded by Medicare.
But the Australian Medical Association (AMA) said the rest was thin. AMA President, Dr Danielle McMullen warned of a remaining funding gap of at least $9.6 billion in hospital funding and criticised the lack of broader Medicare modernisation.
“Urgent care centres and targeted bulk billing in certain geographic areas are not long-term solutions. We need to see true reform of Medicare,” Dr McMullen said.
The AMA also raised alarm over cuts to the private health insurance rebate for over-65s, warning it could force older Australians to drop or downgrade cover and pile extra pressure on public hospitals.
The Australian College of Nursing called for a national nursing workforce strategy, warning of a projected shortage of more than 70,000 nurses by 2035. The Royal Australian College of General Practitioners (RACGP) also welcomed the three-year-old health check and RSV vaccination funding but flagged disappointment with racism in the health system.
Disability & NDIS [Negative]
The Budget’s single biggest savings measure is a proposed $37 billion cut to the NDIS through tighter eligibility, stronger fraud controls, mandatory provider registration and a target of reducing participant numbers by 160,000 by 2030.
The Business Council of Australia supported the structural reforms as necessary to return the scheme to its original intent. The BCA commended the government's "tough decisions" to make the National Disability Insurance Scheme (NDIS) more sustainable and expressed approval for the expected return to a budget surplus earlier than previously forecast, but disability advocates and welfare groups remain alarmed.
ACOSS CEO Dr Cassandra Goldie said people with disability were frightened about what the reforms mean and urged the government to keep them at the centre of any changes.
The Greens accused the government of cutting $37 billion from disability services to fund $53 billion in weapons spending, where Independent Bob Katter acknowledged the NDIS needed restructuring to tackle rorting, but said the measures targeted eligibility fraud while the bigger problem, rorting by scheme administrators, remains unaddressed.
“It is outrageous that fraudulent businesses have been created with the primary purpose of effectively thieving from, neglecting and defrauding some of the most vulnerable members of our society,” Mr Katter said.
Defence & National Security [Positive]
As previously announced, the government is proposing commitments of $425 billion to defence over the next decade, targeting 3 per cent of GDP by 2034. This is a proposed increase of $14 billion over the next four years, and $53 billion across the decade.
Spending targets include accelerating nuclear submarines and surface ships under AUKUS, expanding long-range strike capabilities, and boosting uncrewed systems. Bob Katter welcomed the spending direction but said it failed to shore up foundations, calling for action to regain control of strategic assets like ports and airfields and to increase the number of combat-ready civilians.
Energy & Environment [Negative]
Energy policy drew some of the sharpest reactions. The government committed $14.8 billion to a Strengthening Australia’s Fuel Resilience package and $10 billion to extend domestic fuel stockpiles.
The ACTU welcomed these as job-saving measures. But the Climate Council slammed the government for the proposed $19 billion in annual fossil fuel subsidies and for forgoing gas export tax revenue, calling it a massive free kick for fossil fuel corporations.
“This Budget maintains the $19 billion gravy train for big fossil fuel corporations,” said Climate Council CEO Amanda McKenzie.
The Australian Conservation Foundation (ACF) claimed seven times more funding was being spent on initiatives that damage nature and climate than protect it. Both the Climate Council and ACF criticised the government for failing to impose a 25 per cent tax on gas exports, which they estimated could raise $17 billion annually.
Small Business [Mixed]
Small business had some wins: the $20,000 instant asset write-off was made permanent, and companies under $1 billion turnover can now carry back tax losses against tax paid up to two years earlier (at a budget cost of $2.3 billion over three years).
ACCI welcomed both measures. But the 30 per cent minimum tax on trust distributions alarmed the sector. ACCI’s David Alexander warned the trust tax would damage business operations and productivity due to management having their pay permanently cut by the government. Trusts are commonly used by small businesses to protect assets and ensure continuity.
Education [Negative]
Education seemed a lower priority in this year’s Budget. The Greens’ Senator Faruqi rallied with the National Union of Students to demand the reversal of job-ready graduates' fee hikes that have produced $52,000 arts degrees.
The Student’s Union National President Felix Hughes said the words “student” and “university” were not mentioned once in the Treasurer’s speech. The Australian Education Union welcomed the housing commitments that could help teachers locked out of the areas where they teach, but flagged concern about $472 million in savings to disability funding.
“Budgets are about priorities and young people will look at this budget and wonder if they are a priority at all,” said Felix Hughes, NUS National President.
Aged Care [Mixed]
The government reclassified personal care as clinical care in aged care, removing co-contributions for services like showering and mobility assistance.
Uniting Care welcomed the $3 billion investment but said it wasn’t enough for high-quality residential aged care. Council of the Ageing’s Patricia Sparrow noted no new home care packages were announced in the Budget, despite older people waiting up to a year for support.
Sparrow also raised alarm about the private health insurance rebate changes hitting 2.6 million older Australians. National Seniors’ Chris Grice said older Australians were already contacting them, unhappy about the insurance changes, and questioned how a 30 per cent minimum tax on shares helps create affordable housing.
Science & Research [Mixed]
The R&D tax incentive threshold was raised from $150 million to $200 million, and the refundable offset was lifted from $20 million to $50 million, and CSIRO received a $387 million funding boost.
The Australian Academy of Technological Sciences and Engineering welcomed the investment in publicly funded research agencies. But Science & Technology Australia’s Ryan Winn warned the sector had alost $1.5 billion in research funding, including $800 million from the Australian Economic Accelerator program, making the research landscape much leaner.
Infrastructure & Transport [Mixed]
The $2 billion housing-enabling infrastructure fund was the main infrastructure announcement. Civil Contractors Federation CEO Nicholas Proud welcomed the direct connection between infrastructure and housing as the missing piece.
Big-ticket items include $3.8 billion for Melbourne Rail and $50 million for Sydney-Canberra rail. Bob Katter slammed the regional infrastructure spend as ridiculously low, demanding funding for North Queensland projects.
The tourism sector was hit by a $10 increase in the passenger movement charge (from $70 to $80), which Tourism and Transport Forum CEO Margy Osmond called a shocker, generating over a billion dollars over the forward estimates.
Employment & Industrial Relations [Mixed]
This Budget includes reforms to employment services, which ACOSS said it hoped would transform a system that has treated low-income people shockingly for far too long. Skills recognition for overseas qualifications was welcomed as a productivity measure.
But the Electrical Trades Union’s Michael Wright warned that despite record investment in vocational education, electrical apprenticeship commencements have fallen every year since 2022, with a forecast shortfall of 40,000 electricians by 2030.
Social Services & Welfare [Negative]
ACOSS CEO Dr Cassandra Goldie gave the Budget’s starkest welfare critique: 4 million people on the lowest incomes - on JobSeeker, Youth Allowance, Disability Support Pension, or the Age Pension - got no cost-of-living relief.
The remote area allowance, at $9 per week, has not increased in 25 years. The government’s own Economic Inclusion Advisory Committee has recommended fixing income support adequacy four years in a row, and four years in a row those people have been left waiting.
Childcare & Early Learning [Negative]
The Parenthood’s Georgie Dent called the Budget a missed opportunity for families with young children. There was no expansion of paid parental leave and no clarity on the future of the 15 per cent early childhood educator wage increase set to expire.
With 260,000 educators unsure whether their wages will go backwards and 1.4 million families paying childcare as their second-highest household expense, Dent said parents needed answers immediately.
Australian Public Services [Mixed]
The CPSU said overall Australian Public Services sector staffing levels were maintained, but job cuts already underway at the Department of Health, Home Affairs, and Social Services would continue.
The union welcomed a $387 million CSIRO funding boost and continued funding for nearly 4,000 frontline Services Australia staff but criticised $3.7 billion spent on contractors and consultants while trained public servants lose their jobs.
What This Means for You
This is a Budget that will be dissected for months to come. The government has taken a clear political gamble, hoping that Australians care more about housing affordability and tax fairness than they do about investment incentives and keeping promises.
The dominant narrative from our analysis of stakeholder reaction is ‘broken promises’ versus ‘long overdue reform’, and which framing wins depends heavily on whether house prices actually begin to ease.
For communicators and PR professionals, the biggest story to watch is the investor response. The Property Council, Master Builders and the Financial Services Council have all flagged they will commission independent modelling of the supply impact.
We will no doubt continue to hear about the impacts of the NDIS cuts, with $37 billion in savings and 160,000 participants potentially losing access, the disability sector will mobilise. This will become a rolling story as implementation details emerge.
Meanwhile, the silence on income support, nothing for JobSeeker, nothing for the remote area allowance, leaves Labor exposed to the criticism that its cost-of-living relief leaves some large big gaps.
Lastly, the health insurance “rebate cut”. Over three million older Australians have just been told they will pay more for cover. That is a large, politically engaged demographic.
Expect aged care, seniors' advocacy, and private healthcare groups to run hard on this in the weeks ahead. And the veterans' cuts, $780 million stripped from allied health could turn into a longer-burning issue, especially with a Royal Commission into Defence and Veteran Suicide still fresh in public memory.
Stay Across the Budget Coverage
The reactions will keep rolling in over the coming days as sectors digest the detail, and the opposition delivers its budget reply. Watch this space for the latest stories and perspectives around the Budget, and in the coming weeks as Senate Estimates begins.
If you're interested in how Isentia can support you with media and parliamentary monitoring, fill out the form below and we will be in touch.
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Blog
Federal Budget 2026: Tax reform divides, housing dominates, and the sectors left wanting
Isentia’s budget night analysis of stakeholder reactions straight from lock-up this evening in Parliament House as stakeholders addressed the Conga-line, along with fresh analysis of key stakeholder media releases from a range of sectors.