5 Key Points from the 2025-26 ACT Budget You Need to Know

Treasurer Chris Steel has used his first ACT budget to deal Canberrans a tough set of cards. Barely two months on from a federal election dominated by the cost of living, only a very small pool of Canberrans will see any sort of relief in this latest outlook. In fact, hip pockets will be hit even harder — especially for homeowners. The ACT government is using a backdrop of lower interest rates and reduced inflation to justify its efforts to boost much needed revenue, as its budget deficit spills over to $1.1 billion.

Let's take a look at the five key takeaways from the 2025-26 ACT budget.

1. A new $250 health levy

The biggest takeaway from this budget is a $250 health levy. It'll apply to all ratepayers and will be attached to rates notices every year until 2029-30, when the ACT government says it'll review it to see if it is still necessary. The levy is expected to bring the territory's coffers an extra $205.7 million over the next four years, starting with $50 million in 2025-26. The ACT government says the extra cash will fund health care, which is the biggest cost to the ACT budget, accounting for roughly a third of all spending.

2. Rates will be going up, up, up — see how much in your suburb

If you're a property owner, rates will only be going in one direction — up. But by how much depends on where you live. For houses, average rate rises range from $47 a year in Chapman to $2,332 in Forrest — that's an increase of 18 per cent! For units, average rate rises start at $25 a year in Coombs to $334 in Yarralumla.

3. A lot of little increases will begin adding up

The government will increase all categories of pay parking and parking permit fees by 6 per cent. We'll begin to see little increases in some everyday costs like parking, car rego, and driver licence renewals.

4. The ACT can't afford to give anything away for free anymore

Canberrans love an electric vehicle (EV), leading the country in EV adoption rates with around one in five new vehicles sold being plug-ins. Part of the reason is the ACT's generous incentives to invest in zero-emissions vehicles, including a stamp duty exemption — but no more! From September 1, 2025, there'll be a minimum 2.5 per cent duty on new cars, which will increase in line with emissions and value.

5. Middle and high-income earners doing the heavy lifting

A $1.1 billion deficit has forced the ACT government to find ways to bring in all the revenue it can muster. The government says with inflation and interest rates now coming down, now is the time to ask some Canberrans to pay more. High and middle income earners — especially home owners — will feel the brunt of it.

According to the source: Australian Broadcasting Corporation.