New Delhi, May 13 -- Australia's government on Tuesday unveiled one of the most consequential economic overhauls in decades, using its annual budget to redraw long-standing property investment tax incentives, expand strategic fuel reserves and curb welfare spending as global instability and domestic inequality increasingly reshape the country's political economy.

cheap energy, rising property wealth and uninterrupted globalization.

Instead, the government of Prime Minister Anthony Albanese is betting that voters will accept politically risky reforms in exchange for what officials describe as greater long-term stability in an era increasingly shaped by geopolitical shocks, inflation fears and housing insecurity.

At the center of the bud...