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ACT Budget Balances Housing and Health Boosts With a $323.4 Million Deficit

The budget raises near-term borrowing with a postponed return to surplus in 2028–29.

Overview

  • Budget papers handed down on Wednesday show a $323.4 million net operating deficit for 2026–27 with a return to surplus now forecast in 2028–29.
  • The territory will spend about $10.2 billion in 2026–27, with net debt rising toward roughly $12.5 billion and a new fiscal cap set at 19 percent of gross state product.
  • The controversial local health levy will be abolished after the ACT secured extra Commonwealth funding and stamp duty will be removed for first-home buyers and some new unit purchases from July 1, 2026.
  • The government committed $1.34 billion over seven years to the Northside Hospital and protected projects already under construction while creating a $700 million four-year saving by deferring lower-priority capital works, including Woden-to-airport construction.
  • Households face higher average rates of about 5 percent, new and increased fees, and directorates must tighten budgets with a voluntary redundancy fund signalling possible public service job reductions.