28 July 2025

Who killed Canberra City? A government’s role in its slow collapse

| By Matt Croger
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Canberra Centre entrance.

Civic must be economically vibrant day and night. Photo: Michelle Kroll.

Once a bustling hub of lunchtime crowds and office chatter, Canberra City now echoes with silence and scaffolding.

The decline has been slow but steady—first COVID, then the persistence of remote work, and now city-wide development projects, most notably the light rail.

What was once a vibrant, if not beautiful, city centre is now a shadow of itself, wrapped in fencing and uncertainty.

The promise sold to us is one of future revitalisation. But the path to that future is paved with disruption, and the government has shown little intent to support those impacted along the way.

Their unwillingness to deviate from a rigid development timeline has spelled disaster for countless businesses. There’s been no meaningful support, no strategic planning, and no recognition of the real-world consequences of their decisions.

I want to be clear: I am not anti-light rail. I am anti-implementation – specifically, the timing, organisation, and communication around this process.

Three years of disruption for a track that will extend just a few hundred metres to Commonwealth Park.

Businesses knew it was coming, and many chose not to move into the City as a result. The massive new building from Morris Property Group on City Hill sits empty, overlooking a city devoid of foot traffic. The reported 10 per cent vacancy rate for prime buildings doesn’t even account for those awaiting demolition, meaning the real figure is likely much higher.

READ ALSO Inside the plans for new light rail tunnel

COVID ripped the heart out of a workforce that was once centralised in the City. What began as a necessary shift to remote work became a preferred way of life.

Some government departments now require teams to come in only once a fortnight. While this flexibility benefits workers, it has left the City hollowed out. And in this context, the government chose to begin major construction and reduce parking availability, further discouraging visits.

Carparks near the QT Hotel, City Hill, London Circuit, and the courts have vanished due to light rail construction, land sales, and pre-construction works. A walk through the west side of the City reveals once-popular lunch spots now eerily quiet, entire buildings empty, and cobwebs covering doorways to multi-storey offices. And through all this, there has been no comprehensive plan to support the businesses affected by these decisions.

I want to acknowledge the individuals within government teams who are tasked with supporting businesses. They are communicative and empathetic but they’ve been given no roadmap with any serious chance of success.

It’s baffling that nine years after the first sod-turning ceremony for light rail, there is still no clear strategy to help those impacted. What we’ve seen instead is policy on the run, focused primarily on hospitality and nightlife, while ignoring the multitude of other businesses that once drove the City’s economy.

Hospitality is certainly among the most affected, but it’s not alone. Daytime trade has been largely ignored, with the government offering arbitrary evening parking incentives in already diminished carparks. They continue to “consult with businesses” but why wasn’t this done years ago, before the disruption began?

Our business is fortunate. Twenty-five years of relationships have allowed us to weather many storms. We have loyal clients who now travel further and tolerate access challenges to receive quality healthcare. But not every business has the benefit of decades of reputation.

READ ALSO Did influencers really make Civic attractive? There are better ways to spend taxpayer money in the City

Even we are not immune – service industries rely on local populations, and the shift of the workforce to the suburbs has had a tangible impact. Growth has stagnated. We’ve had to source other avenues of work to stay afloat. Despite maps showing nearby parking, the prevailing sentiment among clients is that visiting us is a challenge they’d rather avoid.

It’s hard to believe that after years of disruption, the government is still in promotional mode. We’re still selling the dream while pretending the damage hasn’t already been done.

If we’re only now advertising the next phase, where was the master plan from the beginning? Why wasn’t there a comprehensive strategy to support the businesses and communities affected by the first phase? Instead of learning from past disruption, we’re doubling down – still improvising, still reactive, and still leaving businesses to fend for themselves.

A city cannot survive on weekend and night-time traffic alone. It must be economically vibrant day and night.

I believe in the long-term vision for Canberra City but I worry that many businesses won’t be around to see it realised. The government must step up – not with slogans and signage, but with real, targeted support for the businesses they’ve disrupted.

The time for lip service is over. The time for leadership is now.

Matt Croger is a physiotherapist and local business owner along the light rail corridor.

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Why would I want to go into Civic to shop and walk around when I have to dodge panhandlers galore, see tents plastered around the place or look at Bus stop Betty who’s been camping on a seat for over 6 months accumulating a mountain of rubbish but hasn’t been moved on.

Just when Via Dolce built an attractive, cosmopolitan gazebo that was well patronised, with permission and encouragement, the Government changed the rules and insisted it has to come down. Not briefly, for necessary work, but permanently. It would have been somewhere for Crystalbrook hotel guests to visit. Otherwise, is there any covered outdoor seating in Garema Place for cafe goers? Umbrellas are not going to cut it, in Canberra’s extremes of weather.

Maybe if the owners of Via Dolce had built to the approved plans, and not something else altogether different, then there wouldn’t be a problem.

Just saying….

“The government must step up” …. and do what, exactly? Give money to business owners? How much money? Isn’t that socialism? And entrepreneurial, free-market capitalists hate socialism. Victoria has been building massive public infrastructure for the last ten years. Disruption everywhere. Makes Canberra’s light rail look tiny by comparison. If it’s not built now, when will it get built? Will it be cheaper to build 50 years from now? I know. Vote the Liberals in. Nothing ever gets built when they run things. Complain, complain, complain. Boo hoo.

Another public servant overpaid and working from home has an opinion on the real world. 1. Clean the place up. 2. Make public servants go back to work. Sack the ones who dont, none will be missed. 3. Stop trying to force people into the city on transportation methods they dont want to use. 4. End the ridiculous shared spaces and 40kmph zones with onerous fines simply done to let office workers cross roads without having to look up from their phones.

You are still trying to blame an opposition who hasnt been in government for a quarter of a century. We are in enormous debt, the government doesnt know what budgeting is, they simply know ‘tax’. The tax on private health care is the latest effort to steal money they dont deserve, but you would know about being paid more than you deserve, wouldnt you?

HiddenDragon10:42 pm 30 Jul 25

Civic has become the sadly emblematic epicentre of a failing model of self-government, which is ceaselessly scrounging for revenue and marinated in ideology detached from (and too often hostile to) the daily lives of so many it presides over, and a private sector built on the assumption of an ever-growing supply of affluent captive consumers underwritten by federal taxpayers.

Light rail works and the legacies of Covid have been a harsh catalyst, but things as they once were could not have endured on such shaky foundations – particularly the heavy reliance on federal spending in Canberra when the federal budget is under so many pressures elsewhere.

The future for Civic is almost certainly more residential and less business and bureaucracy (bearing in mind the apparent preference for congregating federal agencies on the other side of the Lake). Done well (i.e. somewhat better than things are usually done in this town) that could actually be quite positive – time will tell.

Tuija Canciani9:55 am 30 Jul 25

Parking that workers in civic use has been allocated to construction site vehicles, secondly, why are there so many homeless tents in civic? I thought demolition of government housing meant that tenants were going to be rehoused? The traffic is a mess, some are lucky to have flexible workplaces that allow people to adjust hours to meet family obligations such as picking children up from school or day, care, others not so lucky, what should be a 20 minute drive from suburbs now = 40+ minutes.

Incommunicado Grumbilium8:58 am 30 Jul 25

Cue the random audits on your business now. This government does not respond well to public criticism

Okay, now that I’ve actually read the article…it’s pretty spot on. I like the Light Rail but it doesn’t look right that the plan is to lead the tracks eastwards towards Commonwealth park when it should just go straight to Woden and then Tuggeranong. Also, having frequent Civic I’ve noticed a lot of construction work and barriers that is very discouraging to pedestrians. It’s sad to see businesses close but I understand when it makes it difficult for customers to reach those businesses.

When I read the question in the title of this article, straight up my answer is “the boring Bogans killed it.” By not going out and taking advantage of the cool stuff that therefore only lasted 5min. LOL

For shoppers in the inner north like me, why struggle to find parking for 10+ minutes, then have to pay if you can find a spot? Far easier to head to belconnen, gungahlin or majura. All three have quick easy and free parking, no road closures, shops that haven’t all closed down, plenty of entertainment options etc.

I don’t have a problem with parking, with catching a bus. The bus driver knows where the road closures are.

Robert Woodrow6:24 pm 29 Jul 25

I couldn’t agree more, l was astounded recently when the final route over the lake and past federal parliament was still being debated.
Surely the route was designed and finalised years ago?
For the present as a service provider in the ACT I have instructed my drivers to avoid Civic and the speed cameras if at all possible.
It’s just too easy to inadvertently exceed the 40 limits and incur astronomical fines.
I sympathise with and feel sorry for the local business owners.

Too true. Since 2020 I used to frequent Civic on the weekend, catching up with friends for dinner. It was an easy drive, parking at the City Centre was easy, I had a pleasant walk to the restaurant. But with the obstructions lately, it’s become a nuisance and risky. I hate going and have to go the long way if I do go to Civic.

Bennett Bennett6:01 pm 29 Jul 25

Online shopping, ever increasing cost of electricity, water, rates, stagnant wages, WFH, petrol, groceries, cost of living nationally, globally influenced and locally influenced. ACT Labour mismanagement of everything it touched. The public transport is a joke, massive cuts to busses to fund the Northside tram, pathetic BA and DA rates, land value sky high, no industry in ACT, the government hates any private business, all land is sacred and must be touched, the Greens and COVID. What else?

I find it very difficult to argue with anything you typed here. I’m just confused, what do you mean by “all land is sacred and MUST be touched?” As for online shopping, I’m guilty of that. I’ve noticed simple mundane items that you can find everywhere can be hard to find now. Also, let’s face it the types of things I like you can’t buy locally. Try buying a pair of Gothic Industrial pants from Big W. It’s so bad, I couldn’t buy a Ramones CD from JB Hi Fi.

“all land is sacred and must be touched”

No-one’s backyard is safe from the government nowadays.

If you think high density, low speed traffic and pedestrian friendly environment kill the city, please give me an example of vibrant and successful city centre with low density, fast traffic and vast parking lots.

Because what the government deems “pedestrian friendly” might seem like a good idea and look nice on a colourful plan, but only causes confusion in practice. Take a look at any workplace that has moving vehicles and pedestrians – they always separate the two as much as possible, and clearly delineate the spaces/paths for each ie. the exact opposite of what the government has done in City with ambiguous “shared zones” which blur or remove any distinction between pedestrian and vehicle areas (even the boundaries of the ‘shared zones’ are not clearly defined. No workplace would be able to operate like that under the government’s WH&S legislation.

Perhaps the goal is to turn the CBD into one giant high density accomodation hub for people who don’t mind living in stacked boxes. Forget about small businesses. They are all being kicked out by excessive costs coupled with systematic dismantling of parking spaces – even though our public transport system is third-class at best.

Civic, 15 years ago.

I think we need to just momentarily need to stop, I need to catch my breath.
Stop the tram extension at the next junction, stop the over spending (Calvary Hospital is just fine for the moment) give the businesses time to recover, give the people their city back. Enough already!
I’m exhausted over expansion I’m never going to have anything to do with.

That’s nice Lauren, but Canberra is predicted to gain 330k people in the next 35 years. The territory government can’t stop them from coming, but they can plan for it. Investment in things like better public transport is needed now to stop the city degrading into a gridlocked mess. (If you think it’s currently bad, never drive in Sydney or Melbourne during rush hour – or frankly Sydney on a random Saturday afternoon.

And Calvary Hospital (now NCH) is absolutely not fine, it is very much undersized. We already struggle to meet the treatment targets, failing to invest will worsen that.

Reading your last sentence reminds me of Bill Burr when he points out”….you gotta’ stop having kids!”

It’s not government planning that kills a city. It’s the unwillingness of developers to invest in diverse community offerings and high-quality public spaces that undermines their long-term prosperity. Times have changed. People won’t be drawn to places that offer nothing beyond a desk. Today’s successful developments are those that are socially conscious and community-minded.

Creating vibrancy and intensive building has killed Civic. Removal of parking, exorbitant parking fees, 40 klm per hour zone, congestion and complexity caused by tram, bikes and scooters mean that very few people ì know go to the city to shop or for entertainment now. Personally, I only go into the city when absolutely necessary to shop and lack of parking close to entertainment and restaurants means Ì go elsewhere at night. Damned shame!

So, which centre do you think is super successful in Canberra?

Capital Retro5:15 pm 29 Jul 25

Queanbeyan.

You might not go to the city to shop, but if you could let a few more people know they shouldn’t be going either so that the Canberra centre is not absolutely heaving with people on the weekend when I do the shopping that would be great. I always look at the massive amount of people and wonder where they come from.

I don’t understand, you can easily park at the city centre and walk to a restaurant or whatever. The only thing you have to worry about is paying for parking and even that’s not too bad.

It’s a deliberate ploy – ACT Government is implementing the “15 minute community” by discouraging people from going anywhere beyond a 15 minute walk from home.

15 minute cities includes walk, ride or public transport. Basically not requiring you to drive. It’s rather freeing not having to deal with all the entitled people on the roads.

You’ll only have to deal with entitled people on the roads if you’re on the road yourself. But just because you might not want to drive, doesn’t mean others don’t want to, or even need to – not everyone can walk, ride or use public transport for every trip.

Very well written. Its such as shame to see the heart of the city being ripped out. Seemingly the Government just don’t care.

Blimey the way you are going on anyone would think the current works were permanent. Hint: they aren’t.

“It’s only temporary” is small consolation to the business owners who have to keep paying rent and other expenses for the three+ years while their income dries up.

ACT government has also killed Woden. A combination of poor planning; degraded facilities; subservience to developers and total disregard for the needs of local people means that Woden Plaza is no longer accessible.

Take a look at Woden now. The vacant shops around the Grand Central Tower have been taken. The revitalization plan piloted by CIT is working, and it is only a start.

I live in Woden area , i avoid it if possible, traffic lights at every turn, absolute shi$ show to park

I’m sorry for the impacts on local traders, but retailers are amongst the first sectors to feel the impacts of the online revolution, which was accelerated by covid and hard times.

Everything they touch turns to …

It’s too complicated to just blame the government (though they are responsible for some of it). Lack of parking is a big problem, but so is the management of the Canberra Centre and other nearby buildings. I recently wandered around the Canberra Centre and there was nothing inherently Canberran about it. It could have been a boring shopping centre in any part of the country or any part of the world – same old chain shops you can find anywhere; selling the same old stuff you can buy cheaper via the Internet.

The ridiculous prices that Civic-based cafes charge are also part of the problem. Why go into the city, with all the traffic and parking problems to get a mediocre and over-priced version of what you can get in and suburban cafe? Workers in the city stop buying food there because they simply cannot afford to pay 25-30 dollars (or more) for lunch every day for very basic offerings. Up to $10 for bland coffee or $20 for a beer is ridiculous. I understand businesses have high overheads, but if you have to charge more than people can afford, then you have an unviable business model and blaming the government doesn’t help.

The savage speed cameras are also an issue keeping people away. Getting a massive fine while still being under the suburban speed limit hurts (and the bunk about making it safe for pedestrians is just wrong because the cameras are not at the crossing where there is the highest pedestrian use; plus the frequency the traffic lights change at that intersection makes it impossible to speed there. The location of the speed cameras is a revenue exercise.)

They don’t seem to care and the electorate keeps confirming that they don’t have to.

Sadly it was all so predictable. A government’s vision which lacked an understanding of the real world. But hey, we’re getting a $5 billion rail to nowhere and have a rainbow roundabout 🌈

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