Labor’s first budget of its second term is framed around inequity between older and younger Australians, the war in the Middle East and the nation’s lagging productivity.

On Tuesday night, Treasurer Jim Chalmers outlined plans to overhaul the tax system and flagged the potential for extra tax cuts in coming years.

It will also support small businesses via tax relief.

These tax breaks, will largely be paid for through paring back concessions for property investors, massive cuts to the NDIS, the removal of the health insurance rebate for older Australians and a crackdown on discretionary trusts used by wealthy families.

These are the budget winners and losers.

Winners

• First-home buyers: A clamp-down on property investment is expected to help about 75,000 people into home ownership. Tax concessions for landlords and investors – including negative gearing and the capital gains tax discount – will be wound back.
• Workers: Anyone who earns a wage will get a $250 bonus on their tax return from July 2027. The payment will be made permanent and comes on top of other tax relief announced in previous budgets
• Hospital patients: Another $25 billion in federal money is being poured into public hospitals, while $5.9 billion will go towards making more medicines cheaper through the Pharmaceutical Benefits Scheme
• Small business owners: The current $20,000 instant asset write off for small businesses will be made permanent from the start of July.
• Public transport users: Billions of dollars have been set aside for infrastructure, with the budget including funding for Melbourne’s Suburban Rail Loop, upgrades for the Sydney-to-Canberra railway line, development work for high-speed rail between Newcastle and Sydney and the electrification of Victoria’s Melton line.
• Motorists: Under a $12 billion fuel security package, the government will secure extra supplies of petrol, diesel and jet fuel to better insulate Australia from future oil price shocks.

Graphic: AAP

Losers

• Future property investors: Changes to negative gearing and the capital gains tax will begin hitting investors from mid-2027, but properties currently owned will be grandfathered.
• NDIS recipients: Changes to eligibility for the National Disability Insurance Scheme will claw back around $15 billion by 2030.
• Older Australians: A Howard-era decision to give people over-65 a more generous health insurance rebate has been scrapped to save $3 billion.
• Wealthy families with trusts: A 30 per cent minimum tax will be imposed on discretionary trusts, which are often used by wealthy families to split income between family members and minimise tax.
• Unskilled migrants: While Australia’s overall migrant intake will stay the same, more places will be allocated for skilled migrants, leaving less room for those without crucial qualifications.
• Future electric vehicle owners: The fringe benefits tax exemption for electric vehicles is being made less generous over time, amid record-breaking EV sales.

-with AAP