A controversial health levy will be abandoned and the ACT will set a new target to tame its fast-rising levels of debt in a budget that outlines more than $10 billion in annual spending for the first time.
But Canberrans' rates bills will rise by 5 per cent on average and they will wait another year to see a surplus while the war in the Middle East continues to push up prices and lowers economic growth expectations.
Budget papers handed down on Wednesday show the territory's headline net operating balance posting a deficit of $323.4 million in 2026-27 and returning to a $244.2 million surplus in 2028-29.
