Australian shares fell 55 points, or 0.6%, to 8,615 in Wednesday morning trade, extending losses for a fourth consecutive session to a five-week low. Sentiment remained cautious after Wall Street finished mostly lower on Tuesday, weighed down by persistent concerns over the war involving Iran and a stronger-than-expected U.S. inflation reading.
Domestically, business confidence stayed deeply negative in April, despite a modest improvement from March’s record low. However, declines on the local bourse were tempered by the 2026/27 federal budget, which offers limited cost-of-living support alongside broad tax reforms aimed at restoring fiscal sustainability over the long term. Key measures include restricting negative gearing to newly built properties from 2027, replacing the capital gains tax discount with a 30% minimum tax rate, and introducing a $250 annual tax offset for workers.
Financials led the market lower, accompanied by weakness in process industries, healthcare, and consumer durables. The big four banks shed between 1.3% and 7.7%, while other notable underperformers included WiseTech Global (-3.4%), Ramsay Health Care (-1.6%), and NextDC (-0.6%).
