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Federal Budget holds for aid, but stronger investment needed in an increasingly unstable world

May 12, 2026 | Media Releases

The Australian Council for International Development (ACFID) welcomes the Government’s commitment to protect the aid program in the face of global cuts, including the increased investment in the Indo-Pacific and support for Australian NGOs working globally. However, at a time when the world is facing rising global conflict, the impacts of climate change, and impending food insecurity from the fuel crisis, Australia has hit an all-time low in generosity, with aid making up just 0.63 percent of the Budget overall.

The 2026-2027 Budget increases aid funding nominally to $5.209 billion, which is a decline in real terms and as a share of the Federal Budget.

“Australia’s development program reflects the values of our nation – and the strong links to our global neighbours. Australians back aid, recent polling shows 74 per cent of the nation support aid being maintained or increased. Aid is a cost-effective investment in regional stability and our own security.

Recent years have shown how quickly global crises, from conflict to pandemics, can cross borders. Investing in peace, prosperity and health is not just the right thing to do, it is the best investment to ensure a safer world for our region and for all of us,” said ACFID CEO Matthew Maury.

ACFID acknowledges Australia’s ongoing support to the Indo-Pacific, where countries face complex and interconnected development challenges. As one of the regions most vulnerable to climate impacts and economic shocks, and with ongoing pressures on health systems, sustained investment is critical to building resilience and supporting long-term stability. This budget directs around 75 cents of every aid dollar to the Indo-Pacific, with a focus on priority areas such as climate and health.

Beyond the region, the Budget fails to keep pace as crises intensify globally, including in Sudan and Gaza, where millions face acute shortages of food, healthcare and protection.

“Two billion people, around a quarter of the global population, live in conflict-affected areas. This was a moment for Australia to show real humanitarian leadership as need surges around the world,” said Mr Maury.

ACFID continues to call for an increase to Australia’s Official Development Assistance to at least 1 per cent of the Federal Budget, a level Australia has previously reached under both Coalition and Labor governments.

“Polling shows that Australians expect the Government to back generosity and provide a robust and targeted overseas development program. Returning to the 1 per cent benchmark is essential to meet rising global need,” concluded Mr Maury.

For more information or to arrange an interview, please contact ACFID Media at [email protected] or call 0401 721 064.  

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