The ACT Budget for 2025–26 offers a cautious yet steady path—balancing infrastructure spending, housing reforms, and fiscal responsibility. Designed to spur growth while managing economic pressure, it carries both optimism and scrutiny from diverse stakeholders.
🏗️ Infrastructure & Project Commitments
Major Capital Works Backed
- Convention Centre precinct: funding secured for scoping and planning.
- Canberra Theatre redevelopment: ongoing support acknowledged.
- Light rail extensions: continued investment to expand transit options.
- Stadium allocation: sustained commitment to sports infrastructure.
Stakeholder Insight:
Property Council ACT’s Ashlee Berry praised the steadiness:
“This is the Budget we had to have… it gives us the right foundations – but now we need to get to work.”
Carnberra Business Chamber CEO Greg Harford echoed the sentiment, underlining the Convention Centre’s vital role in boosting visitor economy.
💼 Business & Tax Outcomes
Payroll Tax & Short-Term Relief
- No payroll tax increase: steady rates for 2025–26 provide business respite.
- Advance notice: businesses receive a one-year warning on future changes.
Business Perspective:
“This is good news for a business sector that is challenged by economic conditions,” said Greg Harford.
💸 Household Impact & Debt Concerns
Rising Costs & Borrowing
- Deficit of $1.1 billion, borrowing projected to exceed $22 billion.
- Debt servicing costs jump from $522 million to ~$1 billion annually.
- $250 hospital levy per household introduced.
Opposition Response:
ACT Liberal Leader Leanne Castley warned:
“Labor’s billion dollar tax bill… will hurt every household… there is no end in sight for these tax increases.”
🏠 Housing & Community Sector Feedback
Mixed Reactions on Reform & Funding
- 140 new social/community homes announced.
- Zoning reforms to enable more diverse housing choice.
- Community sector receives a $10 million boost, but is criticized as inadequate.
Voices from the sector:
- ACT Greens demanded corporate taxes instead of household levies.
- ACT Shelter CEO Corinne Dobson warned: “The level of investment falls far short… does not chart a credible path toward… 2030 targets.”
🧩 Construction & Skills Investment
Master Builders ACT CEO Anna Neelagama supported construction investments, but flagged increased fees:
“Budget 2025‑26 is big on ambition… relying on planned machinery of government changes delivering out to 2030.”
❤️ Health, Disability & Social Services
Medical & Advocacy Funding
- AMA ACT welcomed payroll exemptions for bulk-billed GPs and elective surgery investment.
- Additional services funded: eating disorders, endoscopy, perinatal mental health.
Disability advocates highlighted modest Disability Inclusion Bill funding but flagged ongoing gaps for community organizations.
ACTCOSS CEO Dr. Devin Bowles criticized the flat levy, advocating more progressive levies and deeper structural support to reduce poverty and restore funding to ACT Shelter and Rent Relief.
Actionable Takeaways & Next Steps
For Businesses
- Plan ahead for payroll tax changes using the one-year notice.
- Prepare for infrastructure opportunities, especially in procurement and partnerships.
For Households
- Budget for the $250 health levy. Check exemptions for bulk-billed GP exemptions.
- Monitor services delivery—ensure new dollars translate into real improvements.
For Community & Advocacy Sectors
- Push for ramped-up social housing targets and progressive tax strategies.
- Enhance collaboration to shape implementation plans for disability, mental health, housing.
