ACT Chief Minister and Treasurer Andrew Barr has delivered his 13th ACT budget. Here are the main takeaways.
The figures
High levels of inflation and lower-than-expected levels of economic growth are among the forces affecting the ACT budget this year.
The government says its financial position is strong despite a higher-than-expected deficit, which it attributed to high infrastructure and labour costs along with the need to provide cost-of-living support to the community. Budget papers show a return to surplus in 2026-27.
Annual government expenses are expected to top $9 billion for the time in the history of self government, with a deficit of $624.1 million in 2024-25.
Total government revenue for this coming financial year will be $8.14 billion.
The deficit in 2023-24 is estimated to reach $830.8 million, significantly higher than the $442.7 million deficit expected last year and even the revised $782 million deficit expected in the mid-year budget review, released in February.
Budget papers show the government expects to return to surplus in 2026-27.
"The ACT Government's economic and fiscal strategy has shifted its focus from addressing COVID-19 pandemic impacts on the ACT economy, businesses and individuals to meeting new challenges arising from increased interest rates, higher costs of living and cost escalation in infrastructure delivery," the budget papers said.
Health
Two new community health centres, extra nurses and midwives, support for elective surgeries and work on a new northside hospital are among the key measures for health in this year's budget.
Health is the largest area of ACT government spending, and is expected to increase by 13 per cent to $2.6 billion in 2024-25.
The budget includes $920 million worth of new spending over four years for public health care, mental health, health infrastructure and community well being.
The budget will allocate $700 million to invest in public health care, $131 million on improvements to health infrastructure and $10.5 million to expand mental health services.
Education
Education is the second largest area of government spending in the ACT, with its $1.8 billion annual budget making up 22 per cent of public expenditure. The budget includes $100 million worth of new spending over four years.
Nearly $25 million will be spent over four years on "a new suite of systemwide literacy and numeracy initiatives, called Strong Foundations, [that will] ensure all students at ACT public schools have access to consistent, high-quality literacy and numeracy education".
Projects include public school roof replacements at Charnwood Dunlop Primary School, Dickson College and Melba Copland Secondary School's college campus. The budget papers said $22 million would be spent on new and improved schools over four years.
An expanded future of education fund will support vulnerable school students, while a pilot three-day-a-week breakfast and lunch program will begin at five ACT public schools. The budget said $41 million would be spent supporting skills development over four years.
Housing
The budget allocates $285 million for new and additional housing initiatives over four years, including an extra $20 million for an affordable housing project that supports affordable rental properties.
The indicative land release program will more than double the number of dwelling sites set to be sold in 2024-25.
Stamp duty concessions for eligible first-home buyers will expand the income threshold from $170,000 to $250,000 and extend off-the-plan duty concessions to properties worth up to $1 million.
The government's rent relief fund will be expanded to provide up to four weeks' rent to renters in the private market on low-incomes experiencing rental stress of financial hardship.
A pilot program will examine the impact of insourced housing maintenance, following a spate of issues with the contracted provider.
Infrastructure
An updated and staged infrastructure plan outlines $1.4 billion in spending in 2024-25, with expenditure worth $8.1 billion over five years to 2028-29.
Extra funding for upgrades to the Phillip District Enclosed Oval, the start of work on the first stage of the Stromlo Forest Park district playing fields is included in the budget and expanding the Belconnen basketball stadium.
The government will spend $1.72 million over four years on planning, feasibility and design work across a new convention centre, stadium, Exhibition Park redevelopment and Canberra aquatic centre. The money will also cover work on a reopened Telstra Tower and new grandstand at Manuka Oval.
The government will spend more than $76 million over four years on community infrastructure, venues and events, sports, arts and culture.
Spending on associated infrastructure will be worth $110 million in 2024-25 and more than $880 million over five years.
The budget includes money for a new community centre in Woden and improvements to other government-owned community facilities.
And five minutes up ... that's a wrap!
ICYMI
In case you missed it, a number of funding announcements were already announced, ahead of the budget being officially handed down at 5pm on Tuesday.
This is the last budget delivered before October's territory election, giving voters a final opportunity to see the state of the territory's economy before going to the polls.
Here's what we already knew would be funded in the new budget.
HEALTH FOCUS
Total health funding is expected to increase by 13 per cent to $2.6 billion with the government saying funding will go towards more operating theatres and hospital beds.
An extra 137 extra nurses and midwives will be employed with the government seeking to expand nurse-to-patient ratios. There has been $86 million set aside for this.
Paediatric services will also be expanded with the government to establish a paediatric critical care team. The government is hopeful this will mean fewer children will need to travel interstate for treatment.
A new health centre providing free care will open in Casey, with the ACT government budgeting money for the centre's design and construction.
A mental health response service, combining police, paramedics and clinicians will receive continued funding in the upcoming ACT budget. The Police, Ambulance, Clinician Emergency Response program, known as PACER, will be funded to continue providing a second response team for the next four years.
Canberra's fixed-site pill testing facility has also been granted a more certain future with the government committing funding to the centre for another three years.
HOUSING
The ACT has more than doubled the number of dwelling sites it plans to release in the coming year, with the vast majority earmarked for multi-unit projects.
This year's updated indicative land release program reveals the government intends to release land for 5107 residential dwellings in 2024-25.
The government will also make changes to stamp duty payments. More first home buyers in Canberra will qualify for a stamp duty exemption, saving them about $34,000.
Second dwellings worth up to $1 million on RZ1 blocks in Canberra's suburbs will also be exempt from stamp duty for their first transfer, as the government seeks to encourage more dual-occupancy housing.
The government is set to review public housing repairs and maintenance with the government to establish a taskforce to oversee a pilot to insource the maintenance of properties.
The government said there would be $108 million in extra funding for new public housing and to improve existing housing. But the funding is not for extra properties, it is only to support the delivery of the already promised 600 affordable rentals and 400 public housing properties by 2027.
COST OF LIVING
Mr Barr announced several cost-of-living measures on the morning of the budget.
This includes a new one-off $250 payment for local apprentices and trainees by September.
An additional $1 million will be given to the government's future of education equity fund which supports students and families in need.
Low-income households will also receive a $800 rebate on their power bills. The government will also expended public transport concessions for Canberra's on a low-income health care card.
More renters will also be able to access the government's rent relief fund.
INFRASTRUCTURE
A new team of workers will be employed by the ACT government to respond quickly to trip hazards and cracks.
The ACT budget will include $5.81 million over four years to employ a crew of 10 full-time positions and new equipment to complete speedier footpath repairs.
The budget will also include $8.6 million as part of a 50-50 funding deal with the Commonwealth for works on the duplication of Athllon Drive in Tuggeranong, and funding for design work on a new arterial road into Molonglo.
Planning work for a new convention centre is set to be included in the ACT budget, 10 years after the territory government first sought out a design and business case for the centre.
Major Projects Canberra will this year appoint a contractor to work together on building the new Canberra theatre.
Work will also begin this year on a new recycling facility for Canberra to replace the plant which was wrecked by a fire almost 18 months ago. The budget has allocated $26 million to fund the construction of the recycling facility, a joint investment with the Commonwealth.
EDUCATION
ACT public schools will have access to system-approved literacy and numeracy resources, consistent evidence-based teaching practices and a Year 1 phonics check under a funding package in the upcoming territory budget.
The 2024-25 ACT budget will include $24.9 million over four years to fund the reforms beginning from 2025.
The suite of system-wide initiatives, known as Strong Foundations, will put into action the recommendations from the expert panel tasked with reviewing literacy and numeracy education in the ACT.
DOMESTIC AND FAMILY VIOLENCE
Police and courts will receive training on identifying and responding to coercive control as part of a $375,000 package which will also include funding for a public awareness campaign.
Altogether, the budget will provide more than $12 million to address domestic and family violence.
This will include a funding boost to support and frontline agencies including the Domestic Violence Crisis Service, Canberra Rape Crisis Centre, YWCA, Beryl Women Inc and Women's Health Matters.
