Federal Budget 2026–27: Australia cannot afford to remain reactive about health and wellbeing

The release of the 2026–27 Federal Budget has once again highlighted a growing disconnect in national policy discussions around health, participation and community wellbeing.

While the Outdoor Council of Australia (OCA) welcomes aspects of the Budget that support active transport, regional participation and infrastructure investment, the Outdoor Industry remains largely overlooked despite the enormous role it already plays in improving the health, resilience and wellbeing of Australians.

There are encouraging signs that governments are beginning to recognise the importance of active lifestyles and connected communities. The continuation and expansion of the Federal Government’s Active Transport Fund, including long-term investment into walking and cycling infrastructure, is an important step forward.

Trails, pathways and outdoor access are no longer simply recreational assets. They are critical infrastructure that supports healthier communities, regional tourism, social connection and economic activity.

The Outdoor Industry has advocated that getting more Australians outdoors more often delivers benefits across multiple portfolios simultaneously:

• improved physical health

• stronger mental wellbeing

• reduced social isolation

• healthier children and young people

• stronger regional economies

• increased environmental stewardship

• more resilient communities

Yet despite this, the Budget still approaches health largely through a reactive lens.

Australia continues to invest heavily once people become unwell, while investing comparatively little in keeping people healthy in the first place.

That remains one of the Outdoor Industry’s greatest frustrations.

The Budget included ongoing investment into regional infrastructure, skills and workforce development and environmental resilience and disaster preparedness.

These are all positive initiatives. However, there was still:

• no significant preventative health investment centred around physical activity and outdoor participation

• limited recognition of outdoor recreation as preventative health infrastructure

• no major national trails or nature-based recreation projects

• no increase in tourism budgets despite pressure on regional visitation

• no recognition of outdoor learning within education reform discussions

• no targeted response to the growing insurance and compliance pressures affecting outdoor providers

This highlights a broader policy challenge.

The Outdoor Industry continues to sit between portfolios including:

• health

• sport

• tourism

• education

• environment

• regional development

As a result, the sector often contributes to national outcomes without being formally recognised within national policy settings.

Yet the reality is clear.

The Outdoor Industry is already delivering preventative health outcomes every single day.

Every walking trail, outdoor learning experience, recreation program, guided activity, camp, paddle, climb, ride and community outdoor initiative contributes toward healthier and more connected Australians.

At a time when Australia faces increasing challenges around:

• mental health

• chronic disease

• inactivity

• youth disengagement

• loneliness

• regional resilience

the role of outdoor participation has never been more important.

Importantly, this is not simply about recreation.

It is about nation-building.

Outdoor participation strengthens communities, supports local economies, improves health outcomes and creates lifelong connections between people and place.

The Outdoor Industry should not be viewed as a niche leisure sector. It is part of the solution to many of the long-term social and economic challenges Australia is trying to address.

The 2026–27 Federal Budget demonstrates that government is beginning to acknowledge the importance of active communities and movement infrastructure. But there remains a significant gap between recognising the outcomes and supporting the industries that help deliver them.

The next step must be policy integration.

Australia needs a more connected national approach that recognises outdoor participation, recreation and nature-based experiences as essential contributors to:

• preventative health

• education outcomes

• regional economic development

• tourism growth

• environmental resilience

• community wellbeing

Future budgets must move beyond treating outdoor participation as an optional extra and begin recognising it as essential infrastructure for the future health and resilience of the nation.