What to Expect in 2026: How Policy Changes Could Affect Your Finances

Happy New Year! As we enter January of 2026, we can see the year is shaping up to be one where financial strategy might matter more than ever. The economy is starting to stabilise after the sharp and unpredictable inflation cycles of the early 2020s and the shifting government policy priorities. Here is our forward-looking guide to the key policy areas likely to shape the financial world throughout 2026. Please note, this is not a set list, nor financial advice. It is simply our written opinion on predicted trends.

Most major central banks, including the RBA, exited their tightening cycles by late 2024 and spent 2025 testing rate cuts while keeping a close eye on inflation persistence. Whilst 2025s economic outlook began positive, the second half of the year gave rise to concerning inflationary pressures caused by several factors including the cessation of electricity rebates, continued upward pressures in building and domestic travel costs and a decline in wage growth for the year.

The RBA has announced that the previously anticipated rate cut is now unlikely by June. They will continue to monitor both domestic and international markets to determine the outlook for the year to come Borrowers can expect their current mortgage rates to remain largely stable if inflation does not accelerate. Savers may see slightly higher returns on high-interest accounts, with bank competition keeping savings products attractive. For households, 2026 may fall short of predicted relief, but the year should bring less volatility, fewer rapid shifts, and more time to plan.

With the cost-of-living pressure still a political priority, several federal governments worldwide have been signalling a move towards targeted tax relief, rather than broader cuts. This may include modest bracket indexation to prevent any bracket creep. There may be some possible enhancements to low-income offsets to ease pressure on families, but any drastic overhauls remain unlikely in the short term. Although for middle-income earners, the adjustments could be a noticeable improvement in take home pay as early as mid-2026.

Housing affordability will continue to dominate political discussion, and the government is increasingly leaning on a two-pronged approach. This is to incentivise supply and regulate investor behaviour. There is the potential of a broader roll out of build-to-rent incentives, making these types of developments more attractive to large investors. Expanded shared-equity schemes for first home buyers and streamlined planning approvals are in high demand, which could help accelerate developments and home purchases in 2026. For homeowners, there is the chance that these policies may stabilise price growth, and for buyers, ensure that there are additional pathways into the market.

There is also the key factor of the global shift towards cleaner energy. As this initiative ramps up globally, Australian policy is looking to change a few elements, making 2026 a pivotal year for both incentives and household energy costs. It is expected that there will be continued rebates for home electrification, including heat pumps, solar systems, and EV chargers. Grid-upgrade charges have the potential to indirectly raise household energy bills mid-year, though stability is expected by year-end. There is also the possibility of more competitive pricing in the EV market, with government using tax policy to encourage wider adoption. There is the possibility that households that invest in clean energy early, may see meaningful, long-term savings.
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This means that 2026 is shaping up to be important, but not overly dramatic. The policy shifts suggested appear small on paper, although they have the potential to affect interest rates, borrowing capacity, tax outcomes, retirement strategies, and overall household budgeting. Our key takeaway from this is that 2026 will reward planning. Individuals who stay aware of these policy shifts while they are happening, and adjust their strategy in live time, will likely benefit from a more stable financial environment. However, nobody can predict the future.