Ratepayers slugged with new healthcare levy as ACT budget deficit balloons to $1.1 billion
Canberra ratepayers will be slugged with a new health levy as the ACT government works to rein in its ballooning budget deficit.
In handing down his first ACT budget, Treasurer Chris Steel said rising healthcare costs would push the territory further into the red to the tune of $1.1 billion for 2024-2025.
Mr Steel expects to claw back some $600 million in the coming year to bring down the budget deficit to $425 million for 2025-2026, with forward estimates predicting the budget to have a small surplus in four years.
With healthcare costs expected to increase to $2.9 billion in the next financial year, ratepayers will have to pay a new $250 health levy to help cover costs.
"We have had to confront, in this budget, the need to invest in our healthcare system," Mr Steel said.
Businesses which earn $1.75 million will be required to pay payroll tax. Previously, only businesses which earned more than $2 million were required to pay it.
Mr Steel said the Commonwealth needed to fund their "fair share" of health care, which he estimated would be about 45 per cent of the cost of the service in the ACT by the year 2035. The Commonwealth funded around 37 per cent of the ACT's healthcare bill in 2024-25.
"We do need to see the Commonwealth contributing more and we'll be very strongly advocating for that," he said.
There will be a general rates increase of 3.75 per cent in addition to the emergency services levy increasing by $30, and the safer families levy increasing by $10.
You can see how much average rates are going up in your suburb here:
Michael Johns is one Canberran whose hip pocket will take a hit.
Mr Johns labels himself the "sandwich generation" — living with his wife and two kids while also caring for his two elderly parents.
"We're sailing pretty close to the wind at the moment, but rates do provide services."
Mr Johns is currently living in an apartment in Braddon because the build on his family house dragged on with delays, meaning he currently pays two lots of rates.
"My earning capability because of home obligations are really limited. That's what's making it hard," he said.
"I'm not against paying rates but at the moment it's really tough."
More to come.
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