1 July 2025

Greens outrage and more federal funding begs the question, why an ACT health tax at all?

| By Chris Johnson
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Hon Anthony Albanese MP, Chief Minister Andrew Barr MLA.

Prime Minister Anthony Albanese is letting Canberrans and ACT Chief Minister Andrew Barr know just how much the Federal Government is doing for the territory’s health system. Photo: Dominic Giannini.

It’s the first of July and the Federal Government is tripping over itself to make sure everyone knows just how much is changing from today that’s designed to make Aussie lives that little bit better.

The self congratulating is somewhat entertaining, but that’s what governments do and this government is on a roll.

Last week we had three Ministers lined up to make sure no-one forgot Paid Parental Leave changes kick in from today, increasing leave by two weeks to 24 weeks.

The 12 per cent superannuation contribution, based on the increase in the Superannuation Guarantee, also starts from today.

Yesterday, the last day of the financial year, Prime Minister Anthony Albanese was out and about in Canberra patting himself on the back over his government’s apprenticeship incentives starting today.

Education Minister Jason Clare followed up later in the day to remind us all that Commonwealth Prac Payments will also start for nursing, midwifery, teaching and social work students.

Almost every minister, including the PM, is out this morning to spruik newly starting measures. There’s the increase to the minimum wage; and the solar battery rebate; the list goes on.

These are just a few examples from previously made commitments about what gets better from today, 1 July, and they are worth giving some acknowledgement.

Most of the talk about increases usually refers to out-of-pocket costs (and there are plenty of those starting today too).

And that brings us to the ACT and federal Labor’s efforts to try and cover up some really bad news in last week’s territory budget.

READ ALSO Government hails the start of Paid Parental Leave changes

The ACT Government had slapped an annual $250 health tax on all Canberra’s ratepayers – and it blamed the Federal Government.

The ACT Greens said no way and successfully negotiated with the territory government to get that levy reduced to $100 for residential and rural property owners, while the $250 slug remains for commercial properties.

But let’s think about this new tax for a moment, whether its $100 or $250.

Labor governments make a big deal about having created Medicare and the need to keep Australia a nation of universal health care.

Albo just fought an election campaign on it, turning up everywhere flashing a little green plastic card.

So when the ACT Labor government put a health impost on its citizens and said it had to because the federal Labor government isn’t giving it enough hospital funding, the Federal Government wasn’t at all happy about being scapegoated that way.

Federal Health Minister Mark Butler wouldn’t support the levy when asked about it last week, but instead defended the Federal Government’s contribution to the ACT health system.

Now, with the first of July upon us, the Federal Government is keen to let everyone know just how much it is actually increasing hospital funding for the ACT.

The Federal Government will boost its hospital funding in the ACT by 16 per cent.

The extra $50 million will bring total investment in Canberra’s hospitals to $630 million in the 2025-26 financial year, the largest ever provided to the territory by the Commonwealth.

This 16 per cent increase compares to an average increase of 12 per cent across the country.

Chief Minister Andrew Barr should be well pleased, one would imagine.

Well, actually, more federal funding is needed to help the ACT keep on top of the escalating costs of running hospitals.

READ ALSO Federal minister turns back on ACT Government’s health tax

The feds are also kicking in $10.5 million for three new, fully bulk-billed GP practices; $3.8 million to secure the Interchange Health Co-Op in Tuggeranong; $7.1 million to boost the existing walk-in centre network in the ACT; $10 million for additional respite beds; a new perinatal mental health centre in Tuggeranong; and a rural GP training pilot initiative.

The Tuggeranong investments are particularly telling (and welcome), considering Labor very nearly lost the seat of Bean at the federal election.

Finance Minister and ACT Senator Katy Gallagher says the whole investment package demonstrates the Federal Government’s awareness of, and commitment to addressing, the ACT’s “unique” health challenges.

“We know that the ACT health system is unique and that’s why we are playing our role and delivering significant federal investments in hospitals, general practice and aged care,” she said.

“Canberrans want to know that when they need high quality affordable healthcare, they can get it without worrying about how it is being funded.

“We will continue to work cooperatively with the ACT Government to ensure that Canberrans receive high quality, free healthcare where and when they need it because that is what Labor governments do.”

That’s got to be good news, yeah? Well, it’s a sell and federal Labor are going hard at it.

But why the need for ACT Labor to slug Canberrans with any amount of health tax at all?

It seems the ACT budget bottom line needs some help.

But labelling it a health levy is somewhat unbecoming of a Labor government.

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Why an ACT health tax? They called it a health levy because they hoped there would be less outrage at them taxing more to “properly fund health”, hoping people wouldn’t notice the budget actually spends less on health than last year. The reality is this is a poor budgetary management tax as the area with the biggest increase in spending is interest on debt.

chrisjeanemery1:05 pm 01 Jul 25

How can it be a health levy if the budget allocation to health is being decreased?

Are those jubilant government Ministers also celebrating the 10% power price rises they’ve given us ? 🍾

GrumpyGrandpa11:11 am 01 Jul 25

In the election campaign, Albo created fear that Australian would have to bring their credit card, along with their Medicare, if we didn’t re-elected the ALP.

ACT Government will require payment in advance, even if you don’t use the service!

Well done, ACT Government. Albo and the Federal Health Minister must be so proud.

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