Isentia Conversations with Rachel Clements from the Centre for Corporate Health
Over the past few weeks, we’ve been talking to experts about the best ways of working and communicating through a time of unprecedented change.
In this episode, we talk to Rachel Clements, the Director of Psychological Services at the Centre for Corporate Health. Rachel shares some practical tips on how organisations can mitigate psychosocial risks in a time of heightened anxiety – and some advice on maintaining your own mental fitness. Isentia’s Insights Director, Ngaire Crawford also shares some of the trends across social and traditional media.
What mainstream media is saying, with Ngaire Crawford
3:30 – Over the past week, data from mainstream media suggests we’re starting to get a bit restless. Across Australia and New Zealand we’re talking about:
Lockdown restrictions
Business and Economic Impact
When will life be normal again?
Google searches have largely been about restriction levels and what people are and aren’t allowed to do. People are starting to unpack misinformation and search about interesting theories such as 5G towers causing coronavirus.
5:08 – On social media, people continue to reach out and be creative with memes, but there is still an undercurrent of stress and uncertainty.
5.28 – People are starting to shift their mentality from ‘what i need to care about right now’ to ‘ what i need to start caring about in the future’.
People have specifically been worried about:
⇒ Bills/rent/mortgages – specific items that need to be paid.
⇒ Superannuation – the increasing worry is reflective of the long term view – when will this be over?
⇒ Mental Health – still a concern for people
⇒ Job losses – more so about individual bill payments and reduced personal income as opposed to job losses or business strategies.
6:28 – Having context is incredibly important. As communicators, everyone wants to provide genuine and authentic information. It’s important to:
⇒ Understand who you’re communicating to and what they’re feeling.
⇒ Listen. Add additional sources into your information bubble. Look at what’s trending on Google, Twitter, Instagram and TikTok. Look at specific hashtags to get an understanding of what people are talking about and are interested in.
⇒ Seek feedback from audiences, but be aware that patience is starting to wane.
⇒ Keep curious, consider your own media consumption habits and who you are supporting and why.
⇒ Continue to watch what drives emotional responses online such as cancel culture and conspiracy theories, which are usually indicative of wider audience feelings and outrage.
⇒ Audiences and businesses are starting to get antsy about normality and what the future looks like – they want to know what will the new normal look like?
Rachel Clements addresses the psychosocial risks during COVID-19
9:08 – Rachel tells us there are many psychosocial risks impacting people around the world in relation to COVID-19. In particular, people are experiencing an emotional journey and a wellbeing journey. She says you need to understand what’s happening emotionally with people, so you can tailor communication according to the stage that they’re in.
10:00 – To understand the psychosocial risks for COVID-19, a framework has been developed that outlines its 3 stages.
Stage 1 – we were (and some of us still are) operating in flight or fight, operating in panic, fear and anxiety and not taking in much information. We were just trying to survive.
We were adjusting to working from home, adjusting to new technology and having to do pivots within our business. There was a need to look at the media and be drawn into the fear contaigum.
People in this stage don’t take in much information, so we have to be careful with how tailored messages were communicated.
There are many people still in this stage, but there is a shift of people moving into stage 2.
11:15 – Stage 2 – is thought to be more psychologically challenging than stage 1. This is because there is a realisation social isolation and social distancing is our reality and its duration is unknown. Things are unpredictable and this can be mentally tough for people.
11:47 – At the moment, there’s an increase in disengagement, an increase in dissatisfaction, anger, irritability, frustration and languishing – which is akin to depression. If people are sitting in the stage of languishing, they are suddenly feeling unmotivated and not satisfied, a languishing mindset can start to take a toll on their mental wellbeing.
People are starting to transition into ‘i’m tired’, ‘i’m sick of this’ and begin to break the rules or behave in a way that is opposite to what they are asked to do.
12:22 – Stage 3 – People start to adjust to the new normal and have a bit of optimism for the future. People begin to become creative again and feel a sense of hope.
It’s important to understand the different stages in order to communicate. The success of your communication is based on the stage of a person’s emotional journey and their readiness to take in information.
13:10 – There are some psychosocial risk factors currently seen in our workplace environments:
⇒ Pre-existing mental health conditions. Those who were already in an anxious or depressive state, who’ve been forced into social isolation and self distancing, puts them at risk of exacerbation. Drugs and alcohol are being used as a coping mechanism to deal with the increased fear and anxiety people are feeling.
⇒ Pre-existing circumstances within our lives such as relationship break-ups, issues with children, financial stressors, don’t stop and people’s capacity and ability to deal with these external stressors have eroded.
⇒ Family dynamics – although our situations have changed, our expectations have not. There are increased feelings of failure, guilt and burn-out as we try to keep up with family life and work life. The inability to change our mindset and expectations to our current circumstance are leading to excessive stress.
⇒ Family and domestic violence – there are increased levels of hostility and an increase in domestic violence during social isolation.
17:19 – Employment risks have also increased, some of these include:
⇒ Financial pressure caused by the economic downturn. People are concerned about their job security and their financial position.
⇒ Workload challenges. People are trying to balance their personal life, professional life and their associated workloads.
⇒ Loss of direction from social isolation. It can also make people feel demotivated and we need to ensure our teams are kept motivated to prevent languishing and dissatisfaction.
18:45 – During these times, people are struggling with their wellbeing. Trends are already being noticed, these include:
⇒ Heightened levels of anxiety
⇒ Exacerbation of pre-existing mental health conditions
⇒ Presentation of new mental health conditions
⇒ Increase in social withdrawal
⇒ Increase in drug and alcohol use as a coping mechanism
⇒ Increase in incidences of intolerance, aggression and conflict. Humans don’t like to be contained and this is why there is an increase in these behaviours.
⇒ Increase in incidences of domestic violence
⇒ Increase levels of suicidality
21:05 – Wellbeing needs to be on the radar and there has never been a better time for organisations to communicate and discuss strategies to prevent people’s wellbeing diminishing. These include:
⇒ Equip HR and leaders to lead remotely and equip all employees to work remotely
⇒ Identify unique workplace psychosocial stressors – is someone in the team going through a stressful time personally? Is a family member unwell or is someone experiencing a mental health issue?
⇒ Maintain connectivity – seeing someone’s eyes can be beneficial for feeling connected
⇒ Maintain a balance between work and other commitments whilst working remotely
⇒ Develop and maintain a ‘new business as usual’ – find new routines and effective ways to work. People respond well to routine.
⇒ Supportive and visible leadership
⇒ Recognise early warning signs of poor mental health
⇒ Manage anxiety and maintain resilience
⇒ Have R U OK? Conversations
⇒ Promote employment assistance programs and virtual onsite support
If you would like to view other Webinar Isentia Conversations: Communicating through Change:
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.
This month, we chat to Shirish Kulkarni, Director of Monnow Media about effective storytelling. He shares his research about why the way we tell stories needs to change to make news more engaging, inclusive and informative.
Isentia’s Insights Director, Ngaire Crawford also shares some of the trends we’re seeing across social and traditional media, and how we’re seeing the notion of ‘effective’ storytelling change for our clients.
https://youtu.be/tz8LuhjuzBA
Ngaire Crawford talks about the storytelling trends across social and traditional media
3:41 - Mainstream media is talking about:
Back to end-to-end COVID coverage with a regular cadence of updates
Anti-maskers are in the spotlight and the phrase “Bunnings Karen” has returned over 6000 media items
A slight increase in global coverage related to second waves of the virus.
Considerable reduction in racial inequality discussions
Across New Zealand where COVID isn’t quite the main focus, there is a lot of coverage about elections and electioneering.
5:12 - Across social media, there is a lot of division:
Between openly calling out misinformation, and perpetuating misinformation.
Between those ‘doing the right thing’ and those who are not. This is more about calling out individuals rather than organisations.
6:12 - On Google Trends, people across Australia and New Zealand are looking for search terms:
Kerry Nash (Bunnings Karen)
A lot of TV shows and celebrity content (Kanye West etc)
Sports (NZ)
7:06 - In terms of storytelling, it’s important to understand the context in which you are communicating. The things to consider:
Impact of video - divisiveness can breed “recipients” or “evidence” based culture. Video is the easiest way for messages to spread quickly and for media to lift the story. Consider this from a risk perspective (media and customer service training) as well as your content - it might not the time for beautifully produced videos just yet.
Echo chambers -heightened emotional states can mean that audiences seek out information that confirms information they want to believe. Keep an eye on misformation that’s relevant to you and your organisation.
Media as a moral high-ground: Anti-maskers, “fake news” etc can cause a really visceral reaction from the public, and from news media. Unfortunately, this misunderstands the context of those arguments.
9:37 - The narratives to watch at the moment:
Rules fatigue: People are getting tired of being told what to do, it’s a natural reaction (psychological reactance) but it’s something to be really mindful of when communicating right now. There is a heightened emotional state, especially for those who are entering a second lockdown.
Shirish Kulkarni talks effective storytelling
10:26 - Over the past year I’ve conducted research on how we can better tell news stories, and my findings can be applied across the communications industry. We are all storytellers in one way or another.
11:00 - We’re hardwired for stories, at an anthropological and neuroscientific level, stories help orientate us within the world. They are a virtual reality simulator helping us practice for real life.
11:53 - Typically, news stories do the opposite of traditional storytelling (i.e have a beginning and an end to the story). Instead, we (journalists) use the inverted pyramid structure where the top line is the conclusion and then filters down to the least interesting or least important information.
12:39 - The concept of the inverted pyramid structure dates back to the days of the telegraph, the original newswire. It was expensive, unreliable and it made sense to put the most important information at the beginning, just in case you lost the end of it. Although we don’t use the technology of the telegraph anymore, we still use the habits formed by that technology which continue to define journalism and communications.
13:03 - We conducted research with 1300 participants and the results showed users prefer stories that work in a straightforward and linear structure, much like traditional stories. More information was picked up as it fits with how we are hard-wired to navigate the world.
13:28 - Journalists are failing because they are ignoring what users need from the news. In an attempt to reverse that, I came up with six key principles that should be at the forefront of our minds when telling our stories.
Content - is it useful or relevant and does it help us understand the world better?
Context - are we providing enough context? News largely focuses on breaking or moving news but that's often to the detriment of context, analysis and understanding.
Users have agency - they are not just passive victims of the news, they can be part of creating solutions and want the opportunity to choose how to engage with the news.
Tone - we need to consider the tone we are using. We tend to fall back on journalist language which is old fashioned and formulae.
Diversity and inclusion - are crucial when storytelling. It’s about telling different stories, ones that reflect the richness of our societies. This is very important.
Inverted pyramid - is this the best structure to tell a narrative? What are the alternatives? What we are doing isn't working so we’ve got nothing to lose by trying something different.
17:24 - Based on these principles, I created a number of prototypes and tested them with users. When compared with a BBC news article, users overwhelmingly preferred our prototype. They picked up more information in less time and found it easier to navigate. This proves there is a better way of telling stories, we just need to be prepared to think differently and put users at the centre of our thinking.
Q&A
18:40 - How do you think the media coverage of COVID-19 applies to your research?
Media has a crucial role. The only justification to have journalism is to provide reliable and useful information. There’s a big thing about news being about entertainment and there’s a focus on the drama of news rather than the information of news. What do we need to know? We are users as well as the audience and this should be taken into consideration when wanting to drive engagement.
23:46 - Do you have any tips for making the linear narrative structure more effective especially through face to face presentations rather than emails?
What really worked for us was using a "narrative accordion". We had 5 questions, and the answers could be expanded and read based on the user's interest. It didn't matter whether the question was at the beginning or end as it was up to the interest of the user. Simplify what you’re saying, and question whether it’s useful to your users.
28:15 - What have you learned about younger generations and their behaviours?
People have an incorrect characterisation of young people and get their needs completely wrong. There is a perception you can’t make a video longer than two minutes for the younger generation because they have a short attention span and are unable to comprehend what is being said. This generation is the most emotionally and culturally intelligent generation we have ever had. Young people aren’t put off by complexity or depth, they are craving it. Don’t underestimate them.
If you would like toview other Webinar Isentia Conversations: Communicating through Change:
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Blog
Isentia Conversations with Shirish Kulkarni from Monnow Media
We chat to Shirish Kulkarni, Director of Monnow Media about effective storytelling. He shares his research about why the way we tell stories needs to change to make news more engaging, inclusive and informative.
From multi-national corporations to local government bodies, a media release is the bread and butter of any organisation.
It's the primary vehicle for delivering to the myriad journalists scanning both the digital and paper world for tidbits of information they can sculpt into newsworthy articles.
A media release that stands out from the crowd is much more likely to gain traction and, if you have accurate media tracking tools in place, can reveal a lot about your target demographic and its awareness of your brand. Of course nailing the perfect media release is no easy feat, but that doesn't mean it's impossible.
While a good writer will gradually hone their skills over years of practising their craft, there are a few things you can do to instantly improve the quality - and open rates - of your releases. Boost your chances of exposure and consequent brand recognition by avoiding these seven deadly sins of media release writing:
1. Lust - your uncontrolled desire for wordy headlines
Conciseness is the hallmark of any good media release writer, and this extends to your headlines, too. While your headline should convey an idea of what the media release contains, making it too long turns audiences off and discourages them from reading on. Copyblogger reported that 80 per cent of people may read a headline, but only 20 per cent will read the rest.
Keep your headlines, short, snappy and creative. Incorporating meaty or surprising statistics into the headline will improve your press releases' chances of getting opened, as it immediately indicates what the rest of the text will be about.
2. Gluttony - your appetite for lengthy intros knows no limits
Journalists are busy people and don't have time to spend dissecting lengthy discussions on the latest and greatest developments at your organisation, regardless of how well it's written. A reader should be able to get the gist of your media release within the first paragraph or two at most.
Media monitoring analytics may be able to reveal successful patterns in your media release structures, allowing you to cut the filler, condense your writing and get to the crux of the issue as quickly as possible. Time is of the essence and convoluted media releases are unlikely to ever see the light of the day.
3. Greed - you overindulge in promotional phrasing
Media releases are a balancing act between news and promotion, though many PR managers are guilty of leaning too heavily towards the latter. A media release is not an opportunity to sell a product or service and the language you use should reflect this.
Steer well away from salesy sentencing and avoid hyping up your organisation too much. Instead, present the facts in an objective and impartial manner, discuss the role your organisation played in the topic at hand, and let readers form their own opinion.
4. Sloth - you recycle information and use it in your media releases
Media releases feature a distinct style of language and structure and each one you write should be treated as an opportunity to teach consumers about your organisation. Even with deadlines looming over you, avoid copying text from internal documents and including it in your media releases.
Similar to how you would tailor a resume to get a specific job, media releases should be crafted to target a specific magazine, newspaper or website. Write each one from scratch and create unique content that will really hit the mark with your chosen demographic.
5. Wrath - you use excessive exclamation marks
Exclamation marks, most commonly associated with anger (wrath) or loudness, are one of the most ill-used punctuation marks in media releases. You may be excited about developments within your organisation, but using exclamation marks (or worse, multiple exclamation marks) to highlight your point makes the media release look spammy, overly promotional and untrustworthy.
Limit your use of this punctuation mark. Unless someone in your media release feels particularly strongly about a certain subject, it's unlikely that you'll need one whatsoever.
6. Envy - you try to copy other press releases
It can be frustrating to see another media release gain serious traction in your market, especially when you feel as though yours are just as well crafted. However, do not begin mimicking the media releases of other organisations in hopes of achieving similar success.
Be confident in your skills to create a winning media release and feel free to experiment with structures that are a little bit different. As noted in the slothful sin, a media release should be unique in style and content, and copying another's will not reap sustainable results in the long run.
7. Pride - you write about events that are not newsworthy
You're proud of your company and you want the world to know about every little development that takes place behind its doors - we understand. However, remember that media releases essentially help journalists report on the news. If it's not timely, local, new, extreme, unusual or high-impact, you may need to reconsider how newsworthy your media release really is.
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Blog
The 7 Deadly Sins Of Writing A Media Release
From multi-national corporations to local government bodies, a media release is the bread and butter of any organisation.
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.