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Wondering what the 2025 ACT budget includes? Here are five key takeaways
Treasurer Chris Steel has used his first ACT budget to deal Canberrans a tough set of cards.
Barely two months on from a federal election dominated by the cost of living, only a very small pool of Canberrans will see any sort of relief in this latest outlook.
In fact, hip pockets will be hit even harder — especially for homeowners.
The ACT government is using a backdrop of lower interest rates and reduced inflation to justify its efforts to boost much needed revenue, as its budget deficit spills over to $1.1 billion.
Let's take a look at the five key takeaways from the 2025-26 ACT budget.
The biggest takeaway from this budget is a $250 health levy.
It'll apply to all ratepayers and will be attached to rates notices every year until 2028-29, when the ACT government says it'll review it to see if it is still necessary.
The levy is expected to bring the territory's coffers an extra $205.7 million over the next four years, starting with $50 million in 2025-26.
The ACT government says the extra cash will fund health care, which is the biggest cost to the ACT budget, accounting for roughly a third of all spending.
And according to the government, health is the main reason it has such a big budget blowout, with a deficit of $1.1 billion.
It says it's had to shoulder the cost of increased demand on services driven by more expensive GP visits, aged care, and private healthcare costs, as well as people catching up on the care they deferred during COVID.
At the same time, there's also spending on the design and construction of the new northside hospital in Belconnen, the new Canberra Hospital masterplan in Woden, and health centres in southern Tuggeranong, the inner south, and Gungahlin.
But the ACT government has also given the federal government a nudge for not chipping in enough — saying the Commonwealth funded around 37 per cent of the ACT's healthcare bill in 2024-25, but that that amount will fall to around 33 per cent in the next year.
That's despite an agreed target to get that Commonwealth contribution to 45 per cent in the next 10 years, so the ACT government is miffed it is missing out on a shortfall of about $190 million.
If you're a property owner, rates will only be going in one direction — up.
But by how much depends on where you live.
For houses, average rate rises range from $47 a year in Chapman to $2,332 in Forrest — that's an increase of 18 per cent!
For units, average rate rises start at $25 a year in Coombs to $334 in Yarralumla.
The reason why parts of Canberra's inner south are on the upper end of the scale is because of a new threshold the government has introduced.
It'll apply to what the government says are 'high value' residences — those with an unimproved land value worth $1 million or more.
It means those in that new land value bracket will be hit with a higher rate of 0.5743 per cent, up from 0.4832 per cent, bringing in an extra $17.8 million over the next four years.
High value commercial properties with a land value of $5 million or more will also have their own higher threshold, raking in another $5.29 million over the next four years.
We'll begin to see little increases in some everyday costs like parking, car rego, and driver licence renewals.
Some more niche changes include a jump in storage fees for impounded vehicles, up by 730 per cent to $25 a day.
And it'll now cost $11 to get a volunteer working with vulnerable people card — they've been free since the scheme was rolled out in 2011.
It seems the ACT has also been undercharging for tobacco licence fees compared to New South Wales, so they will increase by 72 per cent from $638 to $1,100.
And if you thought vomiting in a taxi couldn't get much more humiliating, you were wrong. The government will be letting taxi drivers increase what they can charge if they need to clean up after you from $85 to $135.
Canberrans love an electric vehicle (EV, leading the country in EV adoption rates with around one in five new vehicles sold being plug-ins.
Part of the reason is the ACT's generous incentives to invest in zero-emissions vehicles, including a stamp duty exemption — but no more!
From September 1, 2025, there'll be a minimum 2.5 per cent duty on new cars, which will increase in line with emissions and value.
The higher the emissions, the higher the duty.
On top of that, there'll be an additional 8 per cent tax on vehicles worth $80,000 or more.
The government is saying that EVs have now established themselves in the market, and it can't keep giving away these incentives for free.
It's the same case for battery storage, ceiling insulation and energy efficient electric appliances which, until now, have been available with zero-interest loans through the Sustainable Household Scheme.
From July 1, those loans will now come with a 3 per cent interest rates.
But there has been more money allocated to the scheme, which means there should be more people eligible for the low-interest loans.
Solar panels won't be included in that scheme at all anymore and will only be available through Home Energy Support Program loans.
A $1.1 billion deficit has forced the ACT government to find ways to bring in all the revenue it can muster.
The government says with inflation and interests now coming down, now is the time to claw back.
High and middle income earners — especially home owners — will feel the brunt of it.
On top of the new health levy, the Safer Families Levy will jump from $10 to $60 in 2025-26, and the Police, Fire and Emergency Services Levy will increase by $30 to $426.
That's a total levy increase on rates of $290, on top of the general rates increase of 3.75 per cent.
Small and medium businesses will also be forced to contribute more, with businesses that earn $1.75 million now required to pay payroll tax. It's intended to capture more businesses. Previously, only businesses which earned more than $2 million were required to pay payroll tax.
Low-income earners and Canberra's vulnerable will be largely spared.
Electricity, gas and water rebates will be permanently increased by $50 to $800 to help those disproportionately affected by cost-of-living pressures.
The number of properties that can be rented out through the government's affordable community housing scheme will also increase from 250 to 1,000.
And a $1.5 million Food Bank Fund will also be established for groups offering food relief.
