Media Release: Cuts Cost More: ACTCOSS urges investment in social infrastructure to prevent rising poverty and long-term costs

The ACT Council of Social Service has submitted its 2026-27 Budget priorities, which are informed by the ACTCOSS State of the Sector report, published today in full. We call on the ACT Government to invest in Canberra’s social infrastructure and protect those experiencing hardship.

“We recognise that the ACT Government is under financial pressure, however, there is no point in cost-cutting today that will only deepen disadvantage and drive-up future spending on acute health care, emergency accommodation, and crisis supports tomorrow,” ACTCOSS CEO Dr Devin Bowles said.

“Both Canberrans and the budget would thrive if there was more systematic investment in the sort of preventative services that help people stay on their feet, like those delivered in the community sector.”

“People are the key to the ACT’s economy, and people cannot contribute as much to the economy when they are in crisis. Conversely, government investments that enable people to meet their full potential add value to the economy across the lifespan.”

“It can be difficult for governments to make wise investments to prevent people reaching crisis because of lack of visible opportunities and evidence of likely return on investment. ACTCOSS’s State of the Sector report and budget submission provide the ACT Government with actionable solutions.”

“Austerity is not the answer. The ACT Government needs to invest in upstream measures that deliver social infrastructure to support a thriving Canberra in the long-term,” said Dr Bowles.

Current situation

While many in the ACT enjoy a high standard of living, too many remain in poverty. ACTCOSS and our member organisations are deeply concerned about growing financial stress and inequity across the Territory that are driving up costs for Government.

Our 2024-25 State of the Sector survey shows rising poverty alongside increasing demand for services in the ACT.

“Community services are the backbone of Canberra’s social infrastructure. We support almost every Canberran at some point—whether through housing assistance, crisis counselling, or programs that build connection and wellbeing,” said Dr Bowles.

“The community sector is deeply committed to supporting Canberrans through life’s challenges, yet increasingly we find ourselves stretched by rising demand and growing complexity that make it harder than ever to meet the needs of the Territory.”

“These challenges affect real people. When services can’t keep up, waiting lists grow, people are turned away, and urgent needs go unmet.”

The consequences ripple across the community, deepening disadvantage and creating avoidable pressure on other systems like health and justice.

What we recommend

ACTCOSS has made 19 budget recommendations across five priority areas:

• Alleviating poverty and cost of living for low-income individuals and families;
• Valuing the community sector;
• Strengthening investment in social housing and homelessness services;
• Supporting self-determination for Aboriginal and Torres Strait Islander peoples; and
• Improving transparency and accountability of the budget process.

On cost-of-living, we call for a review of concessions and government assistance to ensure support reaches those who need it most. The ACT Targeted Assistance Strategy, unchanged since 2012, fails to reflect today’s pressures or provide flexibility for families facing sudden hardship.

“The last five years have seen dramatic increases in the costs of housing, food, utilities and petrol, far outpacing wages and government support. Urgent reform is needed with more than 36 per cent of Canberrans reporting difficulty affording food this year.”

For the community sector, we urge renewed funding for services and infrastructure and fairer indexation that covers all cost increases, not just inflation.

On housing we urge government to set clear targets to grow social housing and reinforce this investment with a funding uplift and contract certainty for the homelessness sector.

For Aboriginal and Torres Strait Islander peoples, we call for longer term contracts for Aboriginal Community Controlled Organisations (ACCOs) to provide stability and continuity of service. We also recommend increased funding for the Elected Body and the establishment of an Aboriginal and Torres Strait Islander-led justice body to implement recommendations of the Jumbunna Report.

Finally, we urge greater transparency and accountability in the budget process, including clearer reporting on spending for the community sector and ACCOs, and improvements to the YourSay website so community voices can inform the budget effectively.

“Our recommendations aim to deliver sustainable, fiscally responsible reforms that invest in preventing disadvantage and inequity in the ACT for the long term,” said Dr Bowles.

ACTCOSS advocates for social justice in the ACT and represents not-for-profit community organisations. Follow us @ACTCOSS on Facebook and Instagram.

For more information or comment, please contact Dr Devin Bowles, CEO ACTCOSS, at [email protected]