Budget 2026-27: Impact by industry sector

From tax reforms to spending cuts, this year’s Federal Budget signalled some controversial new directions. Here Westpac Institutional Bank analysts consider its likely impacts, sector by sector.

This year’s Federal Budget is arguably the most ambitious of Labor’s five Budgets so far, focussing on homeownership through large changes to the taxation of investments and on a return to surplus through cuts to the National Disability Insurance Scheme.

Changes to the negative gearing and capital gains tax regimes will affect how investors allocate their capital in sectors such as funds management, mining and construction. Sectors including mining, agriculture and freight and logistics will benefit from the Government’s moves to shore up fuel supply in times of crisis.

Participants in defence and health are set to benefit after those sectors received major funding boosts.

Defence

Additional funding of AUD 6.8 billion over four years from 2026–27.
Additional AUD 35.6 billion in defence spending over 10 years.

Defence was one of the big-ticket items in the Budget, with spending measures following on from the release of the 2026 National Defence Strategy and 2026 Integrated Investment Program.

Total approved defence spending will rise to AUD 239 billion from AUD 210 billion in last year’s Budget and much of that is going towards the AUKUS submarine program.

“The spending is geared towards moving AUKUS to the delivery stage and setting up elements like infrastructure and maintenance and acquiring the equipment to build the subs in the future,” says Westpac Institutional Bank analyst Rian Madex.

Local contractors stand to benefit, and many are positioning themselves to play a role in the AUKUS supply chain when Australia starts building. “The Australian government has a preference for sourcing locally where possible,” Madex says.

Automotive

Reduction of 100 per cent Fringe Benefits Tax (FBT) discount for electric vehicles costing less than AUD 75,000, down to 25 per cent from 1 April 2029. Discounts for more expensive EVs will be phased out sooner.
Halving of the fuel excise for three months from 1 April this year.
Removal of ‘nuisance tariffs’, including on tyres.

Electric vehicle sales in Australia are already growing quickly – they were 7.4 per cent of new vehicle sales in 2023 and are now tracking at 14 to 16 per cent. Westpac Institutional Bank analyst Robert Stephenson expects that the phasing out of the FBT discount will pull forward EV sales, but only to the extent that there is enough supply.

Halving of the fuel excise for three months won’t have a material impact on the automotive industry, but by enabling motorists to drive more kilometres it will sustain demand for repairs and servicing, Stephenson says.

Only AUD 80,000 a year is raised from tariffs on tyres, but it imposes AUD 32 million in compliance costs on businesses, so the reduction in the regulatory burden will be welcome.

Aviation

Increase the Passenger Movement Charge from 1 January 2027 by AUD 10 from AUD 70 – 80 per passenger.

The increase in the Passenger Movement Charge for every traveller leaving Australia won’t have much of an impact on the sector and will be passed on by airlines in ticket prices, says Westpac Institutional Bank analyst Nathan Foale.

Additional spending on fuel security is a “slight positive” for the aviation sector in that it will help ensure fuel availability during supply squeezes – but it won’t help with the current challenge of high jet fuel prices, he says.

Building

Removal of negative gearing for the purchase of existing dwellings, but not for new dwellings.
Capital gains tax (CGT) discount to be replaced with cost base indexation from 1 July 2027, including on existing investments.
New dwellings can continue to receive the CGT discount.
AUD 2 billion over four years from 2026–27 to support local governments and state utility providers to expedite the delivery of housing enabling infrastructure.

The changes to negative gearing, CGT and the subsequent favouring of newly built homes have grabbed headlines but won’t have a major impact on near-term building activity, predicts Westpac Institutional Bank analyst Mitchell Sanderson.

In the near-term, the CGT and negative gearing changes are likely to dampen investor sentiment and slightly slow renovation activity. “That softens demand for internally used construction materials and end products related to fit outs, such as joinery applications, electrical and plumbing components, plasterboard, and so on,” says Sanderson.

In the medium-term, the shift in policy is likely to slowly tilt construction activity towards the building of new homes.

The government says the AUD 2 billion on housing enabling infrastructure, such as roads, water, power and sewerage will support up to 65,000 new homes over 10 years, but Sanderson says this represents just one calendar quarter of the Federal Government’s National Housing Accord target for housing starts (60,000), whereby 1.2m new, well-located homes are aimed to be built over a 5 year period from July 2024 to June 2029.

“In terms of the actual impact on the construction of new homes, it’s quite muted,” he says.

Even so, it should increase demand for construction materials such as aggregates, concrete, timber and steel.

Property

AUD 85.2 million over four years for better recognition of migrant skills through faster, more flexible skills assessments.

Property-related measures in the Budget including tax changes that incentivise home building, funding enabling infrastructure and measures to boost the building workforce are a sign the government is shifting its housing focus to increasing supply rather than trying to increase demand from first homebuyers, says Frank Allen, Director of Property Risk, at Westpac.

“Building costs were high prior to the Middle East conflict, and have only got worse. If this Budget does as they they're suggesting and flattens out dwelling price growth then that's not really going to help reduce that gap,” Allen says.

“It's hard to see how that's going to stimulate supply, in the in the near term at least.”

There’s not much in the Budget that will affect the commercial property sector, with the economy and interest rates a more significant factor, Allen says. Income streams from commercial property should remain quite healthy given Treasury’s forecast of an economic slowdown and not a recession.

Consumer spending

Workers will receive an annual AUD 1,000 instant tax deduction from 2026-27.
They will also benefit from an additional AUD 250 tax offset from 2027-28.
Permanently extend the AUD 20,000 instant asset write off for small businesses with turnover up to AUD 10 million.
Companies with a turnover of less than AUD 1 billion will be able to carry back a tax loss and offset it against tax paid up to two years earlier.
Increased scrutiny of unfair competition from offshore digital retail platforms.

Consumer spending is likely to remain resilient but restrained in the face of the current cost of living challenges and interest rate settings, as households will continue to manage higher essential costs such as electricity and fuel, says Westpac Institutional Bank analyst Sophie Dalton.

In such an environment, the modest tax relief from 2026-27 will likely be spent on non-discretionary items such as food rather than increasing discretionary spending, she says.

For retailers themselves, the budget introduces several supportive measures, Dalton says, including the instant asset write off, the loss carry back provisions, reductions in regulatory burden and increased scrutiny of unfair offshore competition.

“These positives will be partially offset by the ongoing operating costs that businesses continue to experience, in addition to subdued consumer confidence and, elevated competitive intensity,” she says.

The abolition of the capital gains tax discount and the abolition of negative gearing on existing properties will reduce after-tax returns from these investments, negative impact on wealth effect and thus dampening the demand for big-ticket discretionary items, Dalton says.

Financial institutions

From 1 July, companies with a turnover of less than AUD 1 billion will be able to carry back a tax loss and offset it against tax paid up to two years earlier.
From 1 July 2028, small startups that make a tax loss in their first two years of operation will be able to use the loss to generate a refundable tax offset.
Permanent extension of the AUD 20,000 instant asset write‑off for small businesses with turnover up to AUD 10 million.

Concessions for small businesses such as the instant asset write-off and the tax loss offsets will improve their cash flow flexibility and so will reduce their default risk. At the same time, the instant asset write-off will support equipment finance loans and small business loan growth, Michael says.

Changes to negative gearing and CGT will change the mix of banks’ loan portfolios, weakening demand for mortgages from investors and increasing demand from owner-occupiers, says Westpac Institutional Bank banking industry analyst Damien Michael.

But he adds that the changing mix shouldn’t have any impact on credit quality.

Banks could also increase lending to sectors which will receive investment support from the Budget, including infrastructure, defence and renewable energy.

Non-bank financial institutions

From 1 July 2028, trustees will pay a minimum tax of 30 per cent on the taxable income of discretionary trusts.

Most of the Budget changes that affect banks also apply to non-bank financial institutions (NBFI), but non-bank lenders continue to face higher wholesale funding costs compared with traditional banks and so their profit margins will remain under pressure in a high-interest rate environment, says Westpac Institutional Bank analyst Stanny Sidana.

The Budget’s tax reform and cost of living measures should alleviate some pressure on households and SMEs and support asset performance and short-term credit quality.

Managed funds, alternative assets and private equity/private credit vehicles will face higher effective tax rates and produce lower after-tax returns following changes to the CGT regime. This could result in some investors shifting their funds as income yield strategies become more attractive compared with capital growth strategies, Sidana says.

Many NBFI investment vehicles such as unlisted funds, syndicates and private structures rely on the discretionary trust framework and the introduction of the 30% minimum tax on discretionary trusts will potentially lead to restructuring of investments towards fixed trusts, corporate vehicles and other institutional structures.

Health and National Disability Insurance Scheme

Reducing spending growth in the National Disability Insurance Scheme by AUD 37.8 billion over four years.
AUD 24.4 billion over five years from 2026–27 in additional funding for public hospitals.
AUD 1.8 billion over five years to keep Australia’s 137 Medicare Urgent Care Clinics open.
AUD 3.7 billion over four years from 2026–27 to deliver more support to residential aged care providers.
AUD 5.9 billion over five years from 2025–26 for new and amended listings of drugs on the Pharmaceutical Benefits Scheme.

The Government is aiming to reduce growth in NDIS spending to 2 per cent a year, providing the largest saving in this year’s Budget.

The reforms will introduce a more stringent review process for potential recipients of the NDIS. They are designed to reduce NDIS supplier numbers by 160,000 by 2030, bringing the total to roughly 600,000 and will also reduce the average spend per recipient.

Westpac Institutional Bank health analyst Ed Williams says the reforms will mostly affect smaller NDIS suppliers who may struggle to meet the new compliance requirements.

“We expect consolidation. It’s a very fragmented market and no one has more than 10 per cent market share as it stands,” he says. “The smaller and less diversified players may struggle as a result of this, as some already have been.”

Williams says private hospitals can feel pressure from having to take overflow cases from public hospitals. The additional public hospital funding could promote smoother and less volatile demand, reducing the sector’s need to draw on labour hire agencies for ad hoc workforce needs.

However, regional private hospitals which are directly competing with a single public hospital might be under more pressure.

Medicare Urgent Care Clinics are profitable for operators, and their continued funding is good news for them and will also help divert low-risk cases away from hospital emergency departments.

Capital subsidies for residential aged care providers should help developers build facilities in lower socioeconomic areas where projects wouldn’t otherwise be built because the economics of the build doesn’t currently stack up, Williams says. The funding should provide an extra 5000 beds a year, which is below what is needed to match population growth, but private developers should be able to build the remainder in wealthy areas because they can charge higher Refundable Accommodation Deposits, or RADs.

Natural resources

AUD 1.2 billion to establish a strategic reserve of critical minerals including antimony, gallium and rare earth elements.
AUD 35.5 million over four years to ensure a secure and ongoing supply of affordable gas through the domestic wholesale gas market, including via the establishment of a Domestic Gas Reservation Mechanism.

Westpac Institutional Bank mining analyst Graham Smith says the abolition of the capital gains tax discount could hit junior minerals explorers because investors in this sector tend to profit from capital gains rather than dividends. With the loss last year of the Junior Minerals Exploration Incentive, which allowed exploration companies to funnel tax losses back to investors, explorers are now totally reliant on attracting investors from capital growth from exploration.

“Even at the larger end of town, mining companies tend to have lower dividend payout ratios than other comparable industries because mines are depleting assets,” Smith says.

“So, it'll be interesting to see what those changes mean for investor appetite and whether it necessitates changes at the company level, in terms of paying dividends versus reinvesting in continued growth.”

The Government has provided scant detail on how the strategic reserve of critical minerals will operate. In some other countries, governments are the offtake of choice for projects and provide guaranteed contracts with floor prices, which de-risks operations. “If it works similarly here that’ll certainly be a positive for the development of the industry in Australia,” Smith says.

Westpac oil and gas analyst Grant Jepson says the fuel security plan is a good start. However, a holistic approach to energy security is needed, with the development of new domestic oil & gas supply equally as important. How do we incentivise investment in new supply – providing certainty for investors. Building energy resilience requires surety of supply – “I would argue simply increasing storage capacity to 50 days doesn’t materially improve resilience, we are still reliant on imports for almost 100% of our needs” he says. He says that while the domestic gas reserve is a welcome development, the devil will be in the detail. “You still need a secure supply – so it doesn't matter how much money you're putting aside,” he says. “I do question how much you know what, what level resilience it actually does provide longer term.”

He says that while the domestic gas reserve is a welcome development, the devil will be in the detail.

Electricity and renewables

50 per cent capital gains tax discount for foreign investors in renewable energy projects until 30 June 2030.

A capital gains tax discount for foreign investors in Australian renewable energy projects could boost development, says Westpac Institutional Bank analyst Pranoy Modi.

“At the margins this should increase investment and capex. It should increase jobs and ultimately tax that goes back to the government through an operating project,” he says.

Infrastructure

This year’s Budget continues to place emphasis on infrastructure spending like previous years, and it remains an important part of Government spending, with projects including Melbourne’s suburban rail loop receiving additional funding.

The Budget allocates AUD 8.6 billion in funding for new projects included in the Federal Government's Infrastructure Investment Program over 11 years from 2025-26.

AUD 3.8 billion over four years from 2026–27 in additional funding for Suburban Rail Loop East in Melbourne.
AUD 1.8 billion over six years from 2026–27 in equity for the Australian Rail Track Corporation to invest in its interstate rail network.
The High-Speed Rail Authority has been allocated AUD 660 million over three years from 2025-26 to progress development activities between Sydney and Newcastle

Westpac Institutional Bank analyst Salil Akolkar says additional funding to the Australian Rail Track Corporation will fund resilience from bushfires, floods and derailments and help shore up rail freight corridors.

Against this, says Akolkar, the rail sector will be disappointed by the termination of the Inland Rail project at Parkes in NSW, instead of stretching all the way from Melbourne to Brisbane, which would have brought down logistics costs on the East Coast freight corridor. The link’s role in reducing road traffic from freight could have also helped Australia reduce its transport emissions.

Given the geopolitical uncertainties and supply chain disruptions which we have seen post COVID, the budget has provided a ‘temporary fuel and other materials disruption’ slippage adjustment of AUD 4.1 billion to the Infrastructure Investment Program from 2026-2029.

Agriculture

The Budget was broadly positive for the agriculture sector, says Westpac Institutional Bank agribusiness analyst Scott Warburton.

Primary production income will be exempt from the minimum 30 per cent tax on income from discretionary trusts. This will support intergenerational farm succession by reducing transfer frictions and exit risk, helping young farmers take over from an ageing cohort and prevent further decline in Australian farmer numbers, Warburton says.

Likewise, the National Fuel Security Plan and its role in protecting supplies of diesel and fertiliser will be a welcome development, to improve resilience to geopolitical disruptions.

The industry analysts quoted in this article are from Westpac Institutional Bank and are not independent research analysts.

Browse topics

Disclaimer

©2026 Westpac Banking Corporation ABN 33 007 457 141 (including where acting under any of its Westpac, St George, Bank of Melbourne or BankSA brands, collectively, “Westpac”). References to the “Westpac Group” are to Westpac and its subsidiaries and includes the directors, employees and representatives of Westpac and its subsidiaries.

Things you should know

We respect your privacy: You can view the New Zealand Privacy Policy here, or the Australian Group Privacy Statement here. Each time someone visits our site, data is captured so that we can accurately evaluate the quality of our content and make improvements for you. We may at times use technology to capture data about you to help us to better understand you and your needs, including potentially for the purposes of assessing your individual reading habits and interests to allow us to provide suggestions regarding other reading material which may be suitable for you.

This information, unless specifically indicated otherwise, is under copyright of the Westpac Group. None of the material, nor its contents, nor any copy of it, may be altered in any way, transmitted to, copied of distributed to any other party without the prior written permission of the Westpac Group.

Disclaimer

This information has been prepared by Westpac and is intended for information purposes only. It is not intended to reflect any recommendation or financial advice and investment decisions should not be based on it. This information does not constitute an offer, a solicitation of an offer, or an inducement to subscribe for, purchase or sell any financial instrument or to enter into a legally binding contract. To the extent that this information contains any general advice, it has been prepared without taking into account your objectives, financial situation or needs and before acting on it you should consider the appropriateness of the advice. Certain types of transactions, including those involving futures, options and high yield securities give rise to substantial risk and are not suitable for all investors. We recommend that you seek your own independent legal or financial advice before proceeding with any investment decision.

This information may contain material provided by third parties. While such material is published with the necessary permission none of Westpac or its related entities accepts any responsibility for the accuracy or completeness of any such material. Although we have made every effort to ensure this information is free from error, none of Westpac or its related entities warrants the accuracy, adequacy or completeness of this information, or otherwise endorses it in any way. Except where contrary to law, Westpac Group intend by this notice to exclude liability for this information. This information is subject to change without notice and none of Westpac or its related entities is under any obligation to update this information or correct any inaccuracy which may become apparent at a later date. This information may contain or incorporate by reference forward-looking statements. The words “believe”, “anticipate”, “expect”, “intend”, “plan”, “predict”, “continue”, “assume”, “positioned”, “may”, “will”, “should”, “shall”, “risk” and other similar expressions that are predictions of or indicate future events and future trends identify forward-looking statements. These forward-looking statements include all matters that are not historical facts. Past performance is not a reliable indicator of future performance, nor are forecasts of future performance. Whilst every effort has been taken to ensure that the assumptions on which any forecasts are based are reasonable, the forecasts may be affected by incorrect assumptions or by known or unknown risks and uncertainties. The ultimate outcomes may differ substantially from any forecasts.

Conflicts of Interest: In the normal course of offering banking products and services to its clients, the Westpac Group may act in several capacities (including issuer, market maker, underwriter, distributor, swap counterparty and calculation agent) simultaneously with respect to a financial instrument, giving rise to potential conflicts of interest which may impact the performance of a financial instrument. The Westpac Group may at any time transact or hold a position (including hedging and trading positions) for its own account or the account of a client in any financial instrument which may impact the performance of that financial instrument.

Author(s) disclaimer and declaration: The author(s) confirms that (a) no part of his/her compensation was, is, or will be, directly or indirectly, related to any views or (if applicable) recommendations expressed in this material; (b) this material accurately reflects his/her personal views about the financial products, companies or issuers (if applicable) and is based on sources reasonably believed to be reliable and accurate; (c) to the best of the author’s knowledge, they are not in receipt of inside information and this material does not contain inside information; and (d) no other part of the Westpac Group has made any attempt to influence this material.

Further important information regarding sustainability-related content: This material may contain statements relating to environmental, social and governance (ESG) topics. These are subject to known and unknown risks, and there are significant uncertainties, limitations, risks and assumptions in the metrics, modelling, data, scenarios, reporting and analysis on which the statements rely. In particular, these areas are rapidly evolving and maturing, and there are variations in approaches and common standards and practice, as well as uncertainty around future related policy and legislation. Some material may include information derived from publicly available sources that have not been independently verified. No representation or warranty is made as to the accuracy, completeness or reliability of the information. There is a risk that the analysis, estimates, judgements, assumptions, views, models, scenarios or projections used may turn out to be incorrect. These risks may cause actual outcomes to differ materially from those expressed or implied. The ESG-related statements in this material do not constitute advice, nor are they guarantees or predictions of future performance, and Westpac gives no representation, warranty or assurance (including as to the quality, accuracy or completeness of the statements). You should seek your own independent advice.

Additional country disclosures:

Australia: Westpac holds an Australian Financial Services Licence (No. 233714). You can access Westpac’s Financial Services Guide here or request a copy from your Westpac point of contact. To the extent that this information contains any general advice, it has been prepared without taking into account your objectives, financial situation or needs and before acting on it you should consider the appropriateness of the advice.

New Zealand: In New Zealand, Westpac Institutional Bank refers to the brand under which products and services are provided by either Westpac (NZ division) or Westpac New Zealand Limited (company number 1763882), the New Zealand incorporated subsidiary of Westpac ("WNZL"). Any product or service made available by WNZL does not represent an offer from Westpac or any of its subsidiaries (other than WNZL). Neither Westpac nor its other subsidiaries guarantee or otherwise support the performance of WNZL in respect of any such product. WNZL is not an authorised deposit-taking institution for the purposes of Australian prudential standards. The current disclosure statements for the New Zealand branch of Westpac and WNZL can be obtained at the internet address www.westpac.co.nz.

Singapore: This material has been prepared and issued for distribution in Singapore to institutional investors, accredited investors and expert investors (as defined in the applicable Singapore laws and regulations) only. Recipients of this material in Singapore should contact Westpac Singapore Branch in respect of any matters arising from, or in connection with, this material. Westpac Singapore Branch holds a wholesale banking licence and is subject to supervision by the Monetary Authority of Singapore.

Fiji: Unless otherwise specified, the products and services for Westpac Fiji are available from www.westpac.com.fj © Westpac Banking Corporation ABN 33 007 457 141. This information does not take your personal circumstances into account and before acting on it you should consider the appropriateness of the information for your financial situation. Westpac Banking Corporation ABN 33 007 457 141 is incorporated in NSW Australia and registered as a branch in Fiji. The liability of its members is limited.

Papua New Guinea: Unless otherwise specified, the products and services for Westpac PNG are available from www.westpac.com.pg © Westpac Banking Corporation ABN 33 007 457 141. This information does not take your personal circumstances into account and before acting on it you should consider the appropriateness of the information for your financial situation. Westpac Banking Corporation ABN 33 007 457 141 is incorporated in NSW Australia. Westpac is represented in Papua New Guinea by Westpac Bank - PNG - Limited. The liability of its members is limited.

U.S.: Westpac operates in the United States of America as a federally licensed branch, regulated by the Office of the Comptroller of the Currency. Westpac is also registered with the US Commodity Futures Trading Commission (“CFTC”) as a Swap Dealer, but is neither registered as, or affiliated with, a Futures Commission Merchant registered with the US CFTC. The services and products referenced above are not insured by the Federal Deposit Insurance Corporation (“FDIC”). Westpac Capital Markets, LLC (‘WCM’), a wholly-owned subsidiary of Westpac, is a broker-dealer registered under the U.S. Securities Exchange Act of 1934 (‘the Exchange Act’) and member of the Financial Industry Regulatory Authority (‘FINRA’). In accordance with APRA's Prudential Standard 222 'Association with Related Entities', Westpac does not stand behind WCM other than as provided for in certain legal agreements between Westpac and WCM and obligations of WCM do not represent liabilities of Westpac.

This communication is provided for distribution to U.S. institutional investors in reliance on the exemption from registration provided by Rule 15a-6 under the Exchange Act and is not subject to all of the independence and disclosure standards applicable to debt research reports prepared for retail investors in the United States. WCM is the U.S. distributor of this communication and accepts responsibility for the contents of this communication. Transactions by U.S. customers of any securities referenced herein should be effected through WCM. All disclaimers set out with respect to Westpac apply equally to WCM. If you would like to speak to someone regarding any security mentioned herein, please contact WCM on +1 212 389 1269. Investing in any non-U.S. securities or related financial instruments mentioned in this communication may present certain risks. The securities of non-U.S. issuers may not be registered with, or be subject to the regulations of, the SEC in the United States. Information on such non-U.S. securities or related financial instruments may be limited. Non-U.S. companies may not be subject to audit and reporting standards and regulatory requirements comparable to those in effect in the United States. The value of any investment or income from any securities or related derivative instruments denominated in a currency other than U.S. dollars is subject to exchange rate fluctuations that may have a positive or adverse effect on the value of or income from such securities or related derivative instruments.

The author of this communication is employed by Westpac and is not registered or qualified as a research analyst, representative, or associated person of WCM or any other U.S. broker-dealer under the rules of FINRA, any other U.S. self-regulatory organisation, or the laws, rules or regulations of any State. Unless otherwise specifically stated, the views expressed herein are solely those of the author and may differ from the information, views or analysis expressed by Westpac and/or its affiliates.

UK: The London branch of Westpac is authorised in the United Kingdom by the Prudential Regulation Authority (PRA) and is subject to regulation by the Financial Conduct Authority (FCA) and limited regulation by the PRA (Financial Services Register number: 124586). The London branch of Westpac is registered at Companies House as a branch established in the United Kingdom (Branch No. BR000106). Details about the extent of the regulation of Westpac’s London branch by the PRA are available from us on request.

This communication is not being made to or distributed to, and must not be passed on to, the general public in the United Kingdom. Rather, this communication is being made only to and is directed at (a) those persons falling within the definition of Investment Professionals (set out in Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Order”)); (b) those persons falling within the definition of high net worth companies, unincorporated associations etc. (set out in Article 49(2)of the Order; (c) other persons to whom it may lawfully be communicated in accordance with the Order or (d) any persons to whom it may otherwise lawfully be made (all such persons together being referred to as “relevant persons”). Any person who is not a relevant person should not act or rely on this communication or any of its contents. In the same way, the information contained in this communication is intended for “eligible counterparties” and “professional clients” as defined by the rules of the Financial Conduct Authority and is not intended for “retail clients”. Westpac expressly prohibits you from passing on the information in this communication to any third party.

European Economic Area (“EEA”): This material may be distributed to you by either: (i) Westpac directly, or (ii) Westpac Europe GmbH (“WEG”) under a sub-licensing arrangement. WEG has not edited or otherwise modified the content of this material. WEG is authorised in Germany by the Federal Financial Supervision Authority (‘BaFin’) and subject to its regulation. WEG’s supervisory authorities are BaFin and the German Federal Bank (‘Deutsche Bundesbank’). WEG is registered with the commercial register (‘Handelsregister’) of the local court of Frankfurt am Main under registration number HRB 118483. In accordance with APRA’s Prudential Standard 222 ‘Association with Related Entities’, Westpac does not stand behind WEG other than as provided for in certain legal agreements (a risk transfer, sub-participation and collateral agreement) between Westpac and WEG and obligations of WEG do not represent liabilities of Westpac. Any product or service made available by WEG does not represent an offer from Westpac or any of its subsidiaries (other than WEG). All disclaimers set out with respect to Westpac apply equally to WEG.

This communication is not intended for distribution to, or use by any person or entity in any jurisdiction or country where such distribution or use would be contrary to local law or regulation.

This communication contains general commentary, research, and market colour. The communication does not constitute investment advice. The material may contain an ‘investment recommendation’ and/or ‘information recommending or suggesting an investment’, both as defined in Regulation (EU) No 596/2014 (including as applicable in the United Kingdom) (“MAR”). In accordance with the relevant provisions of MAR, reasonable care has been taken to ensure that the material has been objectively presented and that interests or conflicts of interest of the sender concerning the financial instruments to which that information relates have been disclosed.

Investment recommendations must be read alongside the specific disclosure which accompanies them and the general disclosure which can be found here. Such disclosure fulfils certain additional information requirements of MAR and associated delegated legislation and by accepting this communication you acknowledge that you are aware of the existence of such additional disclosure and its contents.

To the extent this communication comprises an investment recommendation it is classified as non-independent research. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and therefore constitutes a marketing communication. Further, this communication is not subject to any prohibition on dealing ahead of the dissemination of investment research.