The Federal Budget for FY26e provides some added support for households given tax cuts, healthcare cost reductions and energy bill relief. The total benefit amounts to $3.6 billion for FY26e on our estimates, a 0.2% boost to incomes. This pales into insignificance compared with the FY25e tax cuts that lifted income by 1.6%. While some retailers worry about an election year, the economic setting for retail looks good and retail spending is likely to strengthen slightly over the next 12 months.