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Economy

Regional eyes on tonight’s Federal Budget

May 12, 2026

THE Albanese Labor Government will deliver the 2026-27 Federal Budget tonight, with bad news for regional Australia – including the electorate of Parkes – already making headlines.

The government’s announcement this week that it will axe the Inland Rail project north of Parkes has been labelled a “disaster” by businesses, “devastating” by regional mayors, and “disappointing” by farmers.

Federal Member for Parkes Jamie Chaffey said about $3.5 billion has already been spent on the project.

“Business and property owners have built their decisions around it for many years. This is a kick in the guts for regional Australia, and a terrible result for sustainability for our country,” Mr Chaffey said.

He called on Federal Treasurer Jim Chalmers in March to answer the urgent needs of the 20 Local Government Areas in the Parkes electorate in tonight’s budget.

Member for Parkes Jamie Chaffey called on Federal Treasurer Jim Chalmers in March to answer the urgent needs of the 20 Local Government Areas in the Parkes electorate in tonight’s budget.

“A key item on that list was the Inland Rail project,” Mr Chaffey said.

“That has been the first casualty of this budget. Local government is absolutely struggling to provide essential services to their community – often without the financial means to do so.

“Councils throughout the electorate have let me know they have eight priority issues that need attention in this budget: escalating costs and financial sustainability; road maintenance, freight efficiency and road safety; natural disaster preparedness, recovery and resilience; community infrastructure; airport infrastructure; regional telecommunications infrastructure; Inland Rail; and water infrastructure,” he said.

“They are facing more responsibilities, a huge increase in costs and a cutback in funding, without any means of increasing their budgets. I will be taking a close look at the Federal Budget next week to see whether the Government has heard any of the desperate pleas that have been sent their way.

“The Inland Rail decision was just another way in which the Labor Government has robbed from the regions to give to metropolitan areas.

“Yet another example is the lack of funding for a weather station in the Broken Hill area – one of the only regions without weather coverage. This area is in desperate need of accurate and reliable weather information.”

Mr Chaffey said the Inland Rail news followed a long list of blows to regional Australia over the past year, including cost of living increases, changes to gun laws, changes to water laws, slashing of NDIS services, deficits in roads funding and inadequate telecommunications measures.

“It’s time the government listened to regional Australians,” he said. “All Australians have the right to be heard, and the right to access to essential services,” he said.

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