Property Council ACT & Capital Region executive director Ashlee Berry says the Budget could have been worse. Photo: Ian Bushnell.
The Property Council of Australia said the Budget offered stability in uncertain times, balancing fiscal discipline with investment in critical services, but the challenge remained to deliver real outcomes.
Property Council ACT & Capital Region executive director Ashlee Berry said the Budget set a pragmatic course forward – one that could have been much worse given the cost pressures – but the focus now needed to turn to implementation.
“This is the Budget we had to have,” Ms Berry said. “It’s steady, it’s cautious, and it gives us the right foundations – but now we need to get to work.”
Ms Berry said the Budget maintained commitments to major infrastructure, including the Convention Centre precinct, the Canberra Theatre development and light rail, with continued allocations for critical projects like the stadium. On housing, the Budget backed in zoning reforms and set the stage for more housing choice.
The Canberra Business Chamber said businesses would have a sense of short-term relief.
“There are no changes to payroll tax in the next financial year, which is good news for a business sector that is challenged by economic conditions,” Canberra Business Chamber chief executive Greg Harford said.
“Although we are concerned about the impacts of payroll tax changes, we are pleased that the government has provided a year’s notice for businesses to adjust.”
The Chamber supported the funding provided for the scoping and planning of the new Convention Centre. “This new facility is important for future development and growth of the visitor economy and will help position Canberra to deliver its role as the Nation’s Capital,” Mr Harford said
“Overall, it is good news that the Budget forecasts a return to surplus from 2027-28. Long-term though, the Chamber does want to see changes to make Canberra a more attractive place to do business. Ultimately, we need to grow the pie so that there is a broader pool of businesses and consumers to support the economy.”
The Canberra Liberals said households would be slugged with an extra bill of more than $5500 during a cost of living crisis.
A deficit of over $1.1 billion and borrowings growing to over $22 billion meant the interest costs on that debt will go from $522 million to about $1 billion per year, meaning more money going towards paying the interest bill rather than improving essential services such as hospitals and schools.
Leader Leanne Castley said that all Canberrans would be in shock once they found out how much more they would have to pay.
“Labor’s billion dollar tax bill for Canberrans will hurt every household and make life much, much tougher for them,” Ms Castley said.
“What worries me is that there is no end in sight for these tax increases, with the Budget including a $250 per year tax to help pay for getting treated in a hospital.
“And these tax increases are just to pay the bills, not to improve current services. And after all of these massive tax increases, Canberrans are still left with the biggest debt in ACT history.”
The Canberra Liberals will deliver their Budget reply in the Legislative Assembly on Thursday (26 June).
Opposition Leader Leanne Castley will deliver her Budget reply on Thursday. Photo: Thomas Lucraft.
The ACT Greens said the Budget missed the mark by increasing costs for everyday Canberrans, rather than generating revenue from those who can – and should – pay more.
Leader Shane Rattenbury said Labor should have taxed corporations instead, as the Greens had proposed.
“It is baffling that the Government has only committed to building 140 new social and community homes,” he said.
“At the same time, we’re only getting $10 million for the community sector – or roughly $33,000 per organisation. This simply does not go far enough.”
Deputy Leader Jo Clay said introducing a three per cent interest rate on Sustainable Household Scheme loans and duty for electric vehicles slowed progress on climate action.
Master Builders ACT welcomed investment in construction skills, housing and infrastructure, but remains concerned about increased revenue measures.
CEO Anna Neelagama said more government fees and charges for building and construction came at a time it was needed the least.
She also said the projected Budget turnaround was a bold forecast, relying on planned machinery of government changes delivering out to 2030.
“Budget 2025-26 is big on ambition, with a proposed turnaround of nearly 130 per cent over four years,” she said.
The ACT Council of Social Services welcomed the $10 million funding boost for community services but said the health levy should have been more progressive rather than the flat $250.
CEO Dr Devin Bowles said the Budget continued to patch holes in supports for people in poverty, but it made too few new investments to permanently address structural issues.
“Once the Government made the decision to increase revenue, it should have been able to focus more resources on those who need them most,” he said. “This was a missed opportunity and costly decision.”
Dr Bowles criticised the failure to restore funding to ACT Shelter and the scrapping of the Rent Relief Fund.
ACT Shelter welcomed the Budget’s modest housing measures but called for bolder action to tackle the housing crisis.
CEO Corinne Dobson said the numbers didn’t match the rhetoric.
“While we welcome funding to support new social housing dwellings, the level of investment falls far short of what is needed to meet current and future demand,” she said.
“Social housing as a proportion of overall housing in the ACT has declined over time and this Budget does not reverse that trajectory, nor does it chart a credible path toward the Government’s own social housing targets for 2030.”
Ms Dobson also criticised the loss of the Rent Relief Fund and said the failure to restore funding to ACT Shelter put the organisation at risk.
Dr Kerrie Aust: More reform needed. Photo: Ochre Health.
The Australian Medical Association (ACT) welcomed initiatives that provided extra support for general practice, helped patients access planned elective procedures and strengthened wellbeing programs for doctors.
But stronger support and further reforms were essential to meet the needs of Canberrans.
The payroll tax exemption for bulk-billed GP services, starting on 1 July, was a positive move but the lower threshold at which payroll tax will cut in has caused confusion and disappointment.
AMA ACT welcomed funding for additional elective surgery, eating disorders residential treatment centre, expanded endoscopy services and planning for the perinatal mental health residential unit
President Dr Kerrie Aust said the Commonwealth Government urgently needed to step up and provide fairer funding for ACT hospitals.
The ACT Disability Directed Advocacy Caucus – which includes Advocacy for Inclusion, Women with Disabilities ACT and ACT Down Syndrome and Intellectual Disability – said the government had delivered welcome investments in co-design, work on new disability foundational supports, funding to boost the community sector and improvements to infrastructure in areas of need.
It specifically welcomed modest funding to implement the Disability Inclusion Bill and to enable community co-design in the rollout of key disability reform.
Also welcomed were investments in health care that support the ACT Disability Health Strategy, including funding for the new North Canberra Hospital, parking improvements at the Canberra Hospital and support to long-stay patients at the University of Canberra Hospital.
But gaps remain in advocacy and funding for organisations that did not receive multi-year funding.
