CANBERRA, May 12 (Xinhua) -- The Australian government on Tuesday unveiled its federal budget for 2026-27, projecting a deficit of 31.5 billion Australian dollars (about 22.76 billion U.S. dollars) as it seeks to strengthen the economy amid global uncertainty.

Treasurer Jim Chalmers, delivering the budget to parliament, described it as "the most important and ambitious budget in decades," citing rising global pressures.

The conflict in the Middle East has been pushing up prices, pushing down growth and punishing Australians, he said.

Chalmers said the budget centers on "three ambitious policy packages" covering productivity and investment, tax reform and fiscal savings, aimed at easing cost-of-living pressures while building long-term economic resilience.

Housing is a key focus, with investment set to reach a record 47 billion Australian dollars. Measures include support for first-home buyers, such as 5 percent deposits, alongside an additional 2 billion Australian dollars for infrastructure to help deliver about 65,000 new homes over the next decade.

The government will also reform tax settings to encourage investment in new housing supply. Negative gearing will be limited to new builds from July next year, while the 50 percent capital gains tax discount will be replaced with inflation-indexed gains, the treasurer said.

In addition, the budget includes a new 250-Australian-dollar tax offset for workers from the second half of 2027, part of broader tax cuts expected to benefit households.

The government also pledged more than 10 billion Australian dollars to strengthen fuel security and 53 billion Australian dollars in defense funding over the next decade, including support for counter-terrorism capabilities. ■