Canberra residents will be able to access free abortion services up to 16 weeks with the ACT government to fund out-of-pocket costs.
The government will spend $4.6 million over four years to ensure improved abortion access, which will be available to all residents from early next year.
People without a Medicare card will also be able to access the services.
Minister for Women Yvette Berry said addressing any potential inequities in accessing abortion services had long been a goal for the territory government.
"This means that individuals will be supported to make a choice about having an abortion without being influenced by financial barriers. It also means that having an abortion can occur in a time-sensitive manner without being delayed due to an inability to pay," she said.
The measure was welcomed by the Women's Health Centre with chief executive Lauren Anthes saying it was important for everyone who cares about bodily autonomy.
"We welcome this funding initiative to support anyone to access free surgical abortion within the existing gestational limits in the ACT," Ms Anthes said.
"Timely access is vital as services become more expensive and harder to access over time. This funding will help people access surgical abortion as soon as possible."
An ACT parliamentary inquiry is examining the accessibility of abortions and reproductive choice in the territory.
The inquiry was announced last month in response to the landmark United States Supreme Court decision to overturn that country's right to abortion.
Abortion is accessible in the ACT up to the 16th week of pregnancy. After this point, people seeking abortions must travel to clinics in Sydney.
References to abortion being a crime in the ACT were removed from the Crimes Act two decades ago.
Pro-life supporters were banned from protesting within 50 metres of Canberra's abortion clinics under ACT laws that come into effect in 2016. The High Court upheld the validity of exclusion zones in 2019.
Federal, state and territory ministers for women discussed safe access to abortion at a meeting last month.
Ahead of that meeting the ACT was pushing for Australia to have uniform and accessible abortion services across all jurisdictions.
Prime Minister Anthony Albanese last month also ruled out a proposal requiring public hospitals to provide abortion services as part of the federal government's funding arrangements.
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