Appropriation

Current status

This bill became law on Jun 26th, 2026.

Policy area

Budget, tax & economy

What does this bill do?

The Australian Government can spend $1.127824 billion on extra 2025-26 services that are outside ordinary annual government spending.

Why was it introduced?

Extra 2025-26 needs for non-ordinary annual servicesRoutine yearly government spending, which must be put in a separate appropriation bill from the extra or non-routine spending covered here. left some spending outside existing appropriation laws, including Defence investment, Inland Rail funding and state and territory assistance limits. The bill, introduced by Hon Dr Daniel Mulino MP, lets the government draw $1.127824 billion from consolidated revenueThe main pool of Commonwealth public money that this Act lets the government draw from for the extra spending. for those purposes.

Broader context

Before this bill, 2025–26 spending was covered by existing appropriation laws and a $37 billion limit for national partnership paymentsCommonwealth payments to states and territories for agreed projects, services or reforms, with this Act lifting the 2025-26 spending limit for them., while Defence was working to the 2024 National Defence Strategy and Inland Rail remained dependent on Commonwealth support. Heightened uncertainty from the Middle East conflict lifted expected national partnership paymentsCommonwealth payments to states and territories for agreed projects, services or reforms, with this Act lifting the 2025-26 spending limit for them., and Hon Dr Daniel Mulino MP introduced the bill to add $1.127824 billion for non-ordinary services, mainly brought-forward Defence investment and Inland Rail funding, before Parliament passed it and it received Royal AssentThe final formal approval by the Governor-General that turns a bill passed by Parliament into an Act..

Key criticism

The clearest criticism was that the bill formed part of a budget package said to rely on broken promises, higher taxes and policies that would leave households, small businesses and young people worse off. This was raised by Tim Wilson in opposition, while the recorded government speeches supported the appropriation and no detailed bill-specific implementation objection is recorded.

Who supported it?

Hon Dr Daniel Mulino MP introduced this bill. It passed on the voices.

Introduced in House 12 May 2026
Passed House 25 May 2026
Passed Senate 25 June 2026
Became law 26 June 2026

Did it become law?

Yes

Became law 26 June 2026

Final passage

Passed without a counted vote

Members called out ‘aye’ or ‘no’ — no individual votes were recorded.

Passage speed

45 days

From introduction to the latest recorded parliamentary step

Official record

View on APH

Parliament of Australia bill page

What does this bill do?

  1. The Australian Government can spend $1.127824 billion on extra 2025-26 services that are outside ordinary annual government spending.

  2. The funding can be used for government outcomes, payments to state, territory and local governments, department costs, and payments to Commonwealth companies and other corporate government bodies.

  3. Defence gets $900 million brought forward for the 2024 National Defence Strategy and Defence Integrated Investment Program.

  4. The infrastructure department gets over $204 million for the Australian Rail Track Corporation to keep delivering Inland Rail.

  5. The annual debit limitA legal cap on how much can be paid out for certain state and territory funding during the financial year. for general purpose financial assistanceCommonwealth funding for states and territories that is not tied to a specific project or program. to states and territories is set at $40 billion, overriding the earlier Supply Act limit.

Show source excerpts
  1. The total of the items specified in Schedule 1 is $1,127,824,000.
    Appropriation Act (No. 6) 2025-2026 final Act text
  2. (1) The amount specified in a State, ACT, NT and local government item for an outcome for a non‑corporate entity may be applied for the purpose of making payments to or for the States, the Australian Capital Territory, the Northern Territory and local government authorities for the purpose of contributing to achieving that outcome.
    Appropriation Act (No. 6) 2025-2026 final Act text
  3. The Department of Defence will receive $900 million brought forward to meet revised expenditure requirements under the 2024 National Defence Strategy and the Defence Integrated Investment Program.
    Minister's second reading speech
  4. The Department of Infrastructure, Transport, Regional Development, Communications, Sport and the Arts will receive over $204 million for the Australian Rail Track Corporation to continue to deliver the Inland Rail project.
    Minister's second reading speech
  5. (1) The debit limit for the current year for the purposes of section 16 of the Federal Financial Relations Act 2009 is $40,000,000,000.
    Appropriation Act (No. 6) 2025-2026 final Act text

Broader context for this bill

Before this bill, 2025–26 spending was covered by existing appropriation laws and a $37 billion limit for national partnership paymentsCommonwealth payments to states and territories for agreed projects, services or reforms, with this Act lifting the 2025-26 spending limit for them., while Defence was working to the 2024 National Defence Strategy and Inland Rail remained dependent on Commonwealth support. Heightened uncertainty from the Middle East conflict lifted expected national partnership paymentsCommonwealth payments to states and territories for agreed projects, services or reforms, with this Act lifting the 2025-26 spending limit for them., and Hon Dr Daniel Mulino MP introduced the bill to add $1.127824 billion for non-ordinary services, mainly brought-forward Defence investment and Inland Rail funding, before Parliament passed it and it received Royal AssentThe final formal approval by the Governor-General that turns a bill passed by Parliament into an Act..

  1. 2024

    Defence investment plan sets the spending backdrop

    The 2024 National Defence Strategy and Defence Integrated Investment Program became the basis for the later $900 million brought forward for revised Defence expenditure requirements.

    Minister's second reading speech ↗
  2. 2025-26 Budget update

    National partnership paymentsCommonwealth payments to states and territories for agreed projects, services or reforms, with this Act lifting the 2025-26 spending limit for them. sit below the existing debit limitA legal cap on how much can be paid out for certain state and territory funding during the financial year.

    The explanatory memorandum said national partnership paymentsCommonwealth payments to states and territories for agreed projects, services or reforms, with this Act lifting the 2025-26 spending limit for them. were then estimated at $25.4 billion, with a $37 billion debit limitA legal cap on how much can be paid out for certain state and territory funding during the financial year. set to cover existing state agreements, possible new programs and major unexpected events.

    Appropriation explanatory memorandum ↗
  3. 2026-27 Budget update

    Middle East conflict uncertainty raises the payment estimate

    The estimated national partnership paymentsCommonwealth payments to states and territories for agreed projects, services or reforms, with this Act lifting the 2025-26 spending limit for them. for 2025–26 rose to $28.1 billion, leading the bill to propose a higher $40 billion debit limitA legal cap on how much can be paid out for certain state and territory funding during the financial year. once enacted.

    Appropriation explanatory memorandum ↗
  4. 12 May 2026

    Hon Dr Daniel Mulino MP introduces extra funding bill

    The second reading speech said the bill sought $1.1 billion from the Consolidated Revenue FundThe main pool of Commonwealth public money that this Act lets the government draw from for the extra spending., including $900 million for Defence and more than $204 million for the Australian Rail Track Corporation to keep delivering Inland Rail.

    Minister's second reading speech ↗
  5. 25 June 2026

    Parliament passes the bill

    Both houses passed the bill in the same form, completing parliamentary approval for the extra 2025–26 appropriations and the higher state payments debit limitA legal cap on how much can be paid out for certain state and territory funding during the financial year..

    Parliamentary timeline ↗
  6. 26 June 2026

    Royal AssentThe final formal approval by the Governor-General that turns a bill passed by Parliament into an Act. turns the bill into an Act

    Royal AssentThe final formal approval by the Governor-General that turns a bill passed by Parliament into an Act. made the new appropriation and the $40 billion national partnership paymentsCommonwealth payments to states and territories for agreed projects, services or reforms, with this Act lifting the 2025-26 spending limit for them. debit limitA legal cap on how much can be paid out for certain state and territory funding during the financial year. available as law.

    Parliamentary timeline ↗

How did it move through Parliament?

House Senate
Introduced 12 May 2026

The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.

Introduced and read a first time

Second reading opened 12 May 2026

A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.

Second reading moved

Second reading debate 25 May 2026

The bill reached this recorded parliamentary step.

House second reading agreed 25 May 2026

The chamber agreed to the bill at second reading, meaning it accepted the bill in principle and allowed it to continue.

Second reading agreed to

House third reading agreed 25 May 2026

The chamber agreed to the bill at third reading, which completed passage through that chamber.

Third reading agreed to

Introduced 22 June 2026

The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.

Introduced and read a first time

Second reading opened 22 June 2026

A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.

Second reading moved

Senate second reading agreed 25 June 2026

The chamber agreed to the bill at second reading, meaning it accepted the bill in principle and allowed it to continue.

Second reading agreed to

Senate third reading agreed 25 June 2026

The chamber agreed to the bill at third reading, which completed passage through that chamber.

Third reading agreed to

Passed both houses 25 June 2026

Both houses passed the bill in the same form, completing parliamentary passage.

Finally passed both Houses

Scrutiny of Bills review 25 June 2026

Considered by scrutiny committee (25/06/2026): Senate Standing Committee for the Scrutiny of Bills; Scrutiny Digest 7 of 2026

Scrutiny Digest 7 of 2026

APH bill page notes
Assent 26 June 2026

The Governor-General gave Royal AssentThe final formal approval by the Governor-General that turns a bill passed by Parliament into an Act., turning the bill into an Act.

The main case against this bill

The clearest criticism was that the bill formed part of a budget package said to rely on broken promises, higher taxes and policies that would leave households, small businesses and young people worse off. This was raised by Tim Wilson in opposition, while the recorded government speeches supported the appropriation and no detailed bill-specific implementation objection is recorded.

Criticism was broad budget opposition rather than a detailed objection to the specific appropriations.

Broader budget burden

Tim Wilson argued the appropriation should not proceed because it was tied to a budget agenda he said would increase taxes, break promises and make life harder for households, small businesses and young Australians.

Raised by Tim Wilson Source ↗

Recorded votes

How the bill itself passed

The bill passed both chambers on the voices, so there is no list of individual Aye and No votes for final passage.

Passed

House passed the bill

House agreed to the bill's third reading on the voices, so there is no list of individual Aye and No votes for final passage in that chamber.

25 May 2026

Passed on the voices

In a voice vote, members call out Aye or No and the presiding officer judges which side has it. Individual names are only recorded if a formal division is called.

Passed

Senate passed the bill

Senate agreed to the bill's third reading on the voices, so there is no list of individual Aye and No votes for final passage in that chamber.

25 June 2026

Passed on the voices

In a voice vote, members call out Aye or No and the presiding officer judges which side has it. Individual names are only recorded if a formal division is called.

Who spoke, and what they said

Start here — lead voices

Sponsor speech Supports

Daniel Mulino

Australian Labor Party • MP 12 May 2026

Mulino supports the bill and urges the House to pass it because it appropriates $1.1 billion for 2025-26, mainly for defence spending and the Inland Rail project.

Read in Hansard ↗
Lead opposing voice Opposes

Tim Wilson

Liberal Party • MP 25 May 2026

Tim Wilson opposes the bill, arguing the budget package is built on broken promises, higher taxes and policies that hurt households, small businesses and young people.

Read in Hansard ↗
Lead voice Supports

Tim Ayres

Australian Labor Party • Senator 22 June 2026

Tim Ayres supports the bill, saying it provides $1.1 billion in extra 2025-26 funding, including for Defence and the Inland Rail project.

Read in Hansard ↗

All speeches by bloc

Labor

2 speakers · 3 contributions · 2 support

Coalition

1 speaker · 1 oppose

Full record

Full chat