Now lawMoney & Tax Introduced in the House of Representatives, 05 Feb 2026

Extra 2025-26 money approved for states and big assets

This mid-year law tops up some federal spending. It covers money that sits outside the day-to-day running of government. That means payments to states and councils, new programs and big purchases. It also refills a $600 million emergency fund.

Official name: Appropriation Bill (No. 4) 2025-2026

Who it affects

• State and territory governments and local councils: Extra money can flow to them through the Department of Education and the department for roads and big building works.
• Government agencies buying big things: Money for buildings or big systems worth over $10 million can come from this law.
• Everyday Australians: Nothing changes for you straight away. But some projects in your area may be paid from this money.

State payments needed topping up

The government cannot spend public money unless Parliament agrees. All tax and other income goes into one pot. It is called the Consolidated Revenue Fund. A law must say how much comes out and what it is for.

Plans change during the year. So around February the government brings in a second round of spending bills. They are called the Additional Estimates bills. They pay for decisions made since the Budget.

The Constitution is the top set of rules for how Australia is run. It says money for the normal yearly running of government must sit in its own bill. That is Appropriation Bill (No. 3). Appropriation means money Parliament lets the government spend. This bill, Appropriation Bill (No. 4), covers the other spending. Parliament's own departments get a third bill.

This bill adds to the money already given by two earlier laws for 2025-26. They are the Supply Act (No. 2) and Appropriation Act (No. 2).

Where the details are

The amounts sit in a table at the back of the bill. It lists each area of government and each agency. It shows the earlier Budget amount next to each new one, so you can compare.

The government's notes on the bill do not list the new items. They point readers to the mid-year budget papers handed to Parliament with the bill. These are called the Portfolio Additional Estimates Statements.

What the words mean

The first part explains the words in the bill. It says the budget papers can help work out what the law means.

It also treats money moved between parts of the government as a real payment. No cash leaves the pot. But the spending still gets counted and can be seen.

Five kinds of money

The first kind is money for states, territories and councils. In this bill it goes through two departments. One is the Department of Education. The other runs roads and big building works. Each amount is tied to a set goal.

The second kind is for new programs run for the government, such as grants or benefits. A program counts as new in three cases. Its goals might change. An agency might get this kind of money for the first time. Or it might have been paid for another way before.

The third kind pays for things owned and debts owed for those programs. The fourth kind pays for big items worth more than $10 million. Examples are a new building or a big computer system. It can also pay off old debts. This is called an equity injection.

The last kind is for government bodies that stand apart in law. Examples are some agencies and companies owned by the government. Their department passes the money on.

$600 million fund refilled

The Advance to the Finance Minister is an emergency fund. It pays urgent costs that were missed or not expected. For this kind of spending, it was set up in an earlier law. That law was Appropriation Act (No. 2) 2025-2026. It set a limit of $600 million.

Once this law starts, the fund resets to the full $600 million. It does not matter how much was used before. That leaves room for urgent costs until 30 June 2026.

It also stops the same cost being paid twice. Say the bill gives $20 million to a program. And $5 million was already paid from the emergency fund for it. Then the bill only gives $15 million. It can never drop below zero.

Rules for state payments

Section 96 of the Constitution lets the federal government give money to the states with conditions. This bill passes that power to the ministers named in the bill. They can set the conditions, the amounts and the timing. The same goes for the Australian Capital Territory, the Northern Territory and councils.

The government's notes say these decisions are rare. Most money to the states goes through other laws and deals. One is the Federal Financial Relations Act 2009, the main law for paying the states. This bill does not change the yearly limits on those payments.

Say the education department is paying a state for a school building. The named minister could decide when the money is paid. They could also decide what the state must build.

This part also lets money move into special bank accounts kept for the same purpose. The law switches itself off at the start of 1 July 2028.

Start date

The bill went into the House of Representatives, Parliament's main house, on 5 February 2026. MPs debated it through February and March. The House passed it on 24 March 2026.

The Senate, Parliament's second house, got it on 25 March 2026. It passed it the next day. The Governor-General, who stands in for the King, signed it into law on 27 March 2026. It became Act No. 18 of 2026, its official law number. It started that day.

How they voted

Its journey through Parliament

Official sources

• Bill page on aph.gov.au
• Text of the bill
• Explanatory memorandum

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