2025 ACT Budget: Increasing revenue necessary but missed opportunities to support people in need

After several years of financial headwinds, it comes as little surprise that the ACT Government had to increase revenue to continue to guarantee the services Canberrans expect.

“Most of the new revenue appears to be broadly progressive, which is absolutely appropriate given that the cost-of-living crisis continues to hit people on low incomes the hardest,” said ACTCOSS CEO Dr Devin Bowles.

“The health levy should have been more progressive. It is positive that it is limited to people who own properties. Unfortunately it does not differentiate between someone who owns an acre in Red Hill from someone who owns a one-bedroom flat in an outer suburb. They obviously do not have an equal capacity to pay. We also worry that it will be passed on by some landlords to tenants despite Government efforts to limit this.”

“The decision to levy a charge on people who need a Working with Vulnerable People Card to volunteer is deeply regrettable. Government should not tax activities that it wants to promote, and many volunteers are students or retired and on fixed incomes. The last thing our community needs is a disincentive to volunteer.”

“On the expenditure side of the balance sheet, the budget continues to patch holes in supports for people experiencing poverty and other forms of disadvantage, but it makes too few new investments to permanently address structural issues.

“Once the Government made the decision to increase revenue, it should have been able to focus more resources on those who need them most,” said Dr Bowles.
“This was a missed opportunity and costly decision.”

“ACTCOSS welcomes the $10 million funding boost in this budget for the Canberra community. It signals the Government listened to the community sector’s calls through the ACT for Community campaign and recognises the importance of a sustainable community sector,” said Dr Bowles. “The breathing room this creates means the sector can continue to support those doing it toughest and is a welcome step towards ensuring future funding accurately reflects the true cost of service delivery.”

“We are pleased to see that investment in public housing is consistent with the Government meeting its election commitment this year, but we have real concerns about how it will meet its commitment in future years. Regardless, the Government’s strategy leaves a disproportionate amount of the heavy lifting for community housing providers. While incentives to build and operate community housing are larger than in previous years, so is the task. We are concerned that the incentives are not proportionate to enable community organisations to meet this huge goal.”

“The ACT Budget fails to restore funding to ACT Shelter, threatening the viability of the Territory’s peak body for housing justice. The modest level of investment required to keep ACT Shelter viable is negligible in the context of the Territory Budget, but essential if there is to be an independent and informed voice that champions solutions to the current housing crisis. Without additional funding, the ACT risks losing a trusted voice for housing justice,” said Dr Bowles.

“The Government missed an opportunity to sustain or increase targeted supports for people on low incomes in what remains a cost-of-living crisis.

“Support for energy costs is one of the strongest levers the ACT Government has to alleviate cost of living pressures. Despite some investments, we’re seeing an overall reduction in utilities support compared to the previous budget. The permanent increase to the Electricity, Gas and Water Rebate of $50 is positive, but won’t change the status quo given it has been temporarily at this level since 2022. Similarly, the $150 electricity bill support via the federal government’s Energy Bill Relief Fund is half that provided last year via the National Energy Bill Relief fund which saw all Australian households receive $300.

“Cutting the rent relief fund, a vital lifeline for renters in crisis, will increase financial pressure on the most vulnerable members of our community, and intensify demand for social housing,” said Dr Bowles.

“The continuation of funding for food relief is welcome, but, as demand is rapidly increasing, an expansion to funding was required to meet the need.”

“We welcome the modest but important investments to help implement the Disability Inclusion Bill, funding for codesign and work to progress disability foundational supports. The Budget would have been strengthened by further funding for advocacy in a period of transformative change for people with disabilities.”

“The ACT Government’s health expenditure continues to grow faster than the rest of the budget and threatens the Government’s ability to balance future budgets. Increasing the investment in early supports, such as those provided by the community sector, is a necessary step to slowing the growth of expenditure.

“Investment in the community sector provides a strong return on investment for the Government. Much of our work focuses on preventative mechanisms which save money as less people require costly crisis support downstream. Investment in the community sector is not just economically savvy, it reflects a society that values the wellbeing of all people. Conversely, inadequate funding exacerbates disadvantage and means more people will experience poverty and require crisis services, including expensive hospital treatments.”

For more information or comment, please contact 
Dr Devin Bowles, CEO of ACTCOSS, on 0413 435 080 

Authorised by Dr Devin Bowles on behalf of the
ACT Council of Social Service Inc (ACTCOSS).