Canberrans Seek Financial Respite, Find Mixed Bag in Territory Budget
The chill on the training field for the Molonglo Juggernauts football club is more than just the Canberra weather. Inside their aging Stirling facility, a small heater battles the cold, but the more pressing concerns are the pervasive presence of rats and mice, and a series of identified safety issues. “We are in a state of crisis,” stated club president Rach Ross. “What we have been doing is no longer sustainable.” She explained that escalating club costs, for which they have received no support from the ACT government, are forcing difficult decisions. “We won’t be able to absorb those costs, and those costs will have to go to the players,” Ross warned, predicting a decrease in participation and the potential crippling of the club.
Player Strain Reflects Wider Economic Pressures
The financial strain extends beyond the club administration to its members. Jess Ross, the women’s coach and mother of four, shared that many players are meticulously managing their spending. “So many people were like ‘got to go on a payment plan’ and ‘we got to work it into our budgets’ and stuff like that,” she recounted. “In terms of a mortgagee or someone who rents, those expenses are going up, our electricity is going up, day-to-day expenses are going up.” For those hoping for significant cost-of-living relief in the latest ACT budget, the offerings may fall short of expectations.
Budget Highlights: Targeted Relief and Infrastructure Investment
While some funding is allocated for lighting at the football club’s oval, broader cost-of-living support for Canberrans facing financial hardship is limited. The controversial $100 health levy from the previous budget has been eliminated, and a planned increase in motor vehicle registration fees has been postponed. Preceding the budget announcement, additional funding for food relief was confirmed, alongside the establishment of a new Housing Crisis Support Fund aimed at assisting low-income households experiencing rental stress.
However, with a projected budget deficit of $323.4 million for 2026-27 – a $243.7 million deterioration from last year’s forecast – the government has exercised caution in its spending commitments. The timeline for a return to surplus has also been extended by a year, now anticipated in 2028-29.
Treasurer Chris Steel emphasized the government’s priorities, stating, “We’ve prioritised frontline services and supporting our community at a time when they really need it. We have made that very clear; we are not going to prioritise a return to surplus over supporting our community.”
Increases to Fees and Charges Announced
Despite the removal of the health levy, which will offer some relief on rates bills, the average household will still see a 5 per cent increase in their rates. The budget also introduces increases to various other fees and charges:
- Motor vehicle duty rates for non-electric vehicles will rise from February 2027, intended to encourage the adoption of lower-emission vehicles.
- The Safer Families Levy is set to increase by $10 this year, followed by incremental rises of $5 annually for three years from 2027-28.
- The Police, Fire and Emergency Services levy will increase by 4.3 per cent above the wage price index in 2026-27.
- The cost of a full five-year driver licence will be $270.70, up from $261.60.
- The Short-Term Rental Accommodation Levy, paid by booking service providers, will increase from 5 per cent to 7.5 per cent starting July 2027.
An increase in the adult firearms licence fee will bring the cost to $487. Furthermore, a new and revised fee structure has been implemented for the Public Trustee and Guardian service, along with new fees for teachers, including a $100 registration fee.
Significant Investment in Housing Sector
Acknowledging that households are “under pressure” in what Treasurer Steel described as a “very uncertain economic climate” influenced by global events, the government has also paused several infrastructure projects to achieve savings of approximately $700 million over four years. Mr. Steel assured that no projects are being cut, but rather that the infrastructure program is being made more “sustainable and deliverable.”
The budget’s central focus is on housing, with the Treasurer labelling it the “largest investment in new housing since self-government.” To enhance housing accessibility, stamp duty will be abolished for all first-home buyers, irrespective of their income or the value of the property. “It will support more Canberrans and younger generations of Canberrans to own a house of their own,” Mr. Steel stated.
Another substantial commitment within the budget is the allocation of $1.34 billion over seven years for the development of the new Northside Hospital in Bruce.
