Minister Barr: Commonwealth Budget delivers for Canberra
- Written by ACT Government
Released 14/05/2024
The ACT Government welcomes the wide range of initiatives in the 2024-25 Commonwealth Budget that will benefit Canberrans and our city.
Cost of living support across energy, health and education
We know that Canberra households have faced significantly rising costs over the past two years. The $300 Energy Bill Relief for every household in the ACT will provide much needed relief for nearly two hundred thousand Canberra households.
Across the five jurisdictions in the National Electricity Market the ACT will continue to have the lowest standing offers in 2024-25 after other jurisdictions increased by up to 29% last financial year. The ACT Government will assess further energy bill relief for Canberra households in the June Territory Budget once the ICRC final price determination is known.
The redesigned Stage 3 Tax Cuts will provide income tax relief to every worker in the ACT from 1 July 2024. Collectively, ACT residents will benefit the most from these tax cuts as we have a high proportion of pay-as-you-earn taxpayers in the relevant income tax brackets.
We welcome the changes to the tax cuts that were designed to support lower and middle income workers to manage cost of living pressures.
While rising cost of living pressures have been broad based, households’ ability to deal with these pressures is unevenly distributed, impacting employees substantially more than others. Almost four in every five taxpayers in the ACT will receive a larger tax cut compared to the previous Liberal Government’s plan.
We also welcome the HECS debt relief for 57,000 people in the ACT, predominantly providing support to younger Canberrans who have recently graduated. The changes, particularly the fact they have been backdated, are a necessary intervention to avoid unfair outcomes for young workers now and into the future. The ACT has the highest proportion of university level educational attainment in the country so, collectively, Canberrans will be the greatest beneficiaries from these changes.
The deeming rates freeze will also provide additional cost of living relief to an estimated 14,500 income support recipients in Canberra.
Additionally, the Federal Government’s investment through the Strengthening Medicare fund in partnership with the ACT Government will take the pressure off our hospital system and continue to ensure Canberrans get the care they need when they need it.
This investment will strengthen our partnership to make our nurse-led walk-in centres even better, delivering more healthcare workers and more services and ensure we can better support older Canberrans can stay out of hospital and get home sooner. We also support the decision in the Budget to freeze the cost of medicines on the Pharmaceutical Benefits Scheme.
Housing
The ACT Government remains committed to delivering on the targets set out in the National Housing Accord and we are working to deliver above our per capita share of the national target of 1.2 million homes. We know that increasing housing supply will improve housing affordability, access and choice for Canberrans.
The increase of Commonwealth Rent Assistance by a further 10 per cent, building on the 15 per cent increase in last year’s Budget will benefit approximately 7,300 Canberra households.
We also welcome the additional $25 million from the Federal Government for enabling infrastructure to expedite housing development and new social housing supply. This allocation is greater than our per capita share of the national funding pool, in recognition of the Territory’s housing needs.
National Capital Infrastructure Framework
We have been working closely with the Commonwealth Government on a range of opportunities to invest in Canberra’s future.
This collaborative approach has resulted in significant commitments to infrastructure projects in the Territory and additional investment for housing.
Under the previous Federal Government, Commonwealth infrastructure investment for Canberra lagged behind the rest of the country.
In July last year, the Prime Minister and I announced the National Capital Investment Framework partnership, a landmark commitment to work together on investments for Canberra.
This Budget continues the work under the NCIF, with $50 million to the planning and detailed design of Light Rail Stage 2B that will take Light Rail through the parliamentary triangle to Woden. This is on top of the $344 million Commonwealth has contributed to the stage 2A extension of light rail to Commonwealth Park.
The Budget also includes an additional $27 million contribution for the William Hovell Drive duplication project, and feasibility funding of $200,000 for the Belconnen Busway.
$675,000 in investments for planning and design of the Molonglo East-West arterial road connecting John Gorton Drive, the future Molonglo Town Centre and the Tuggeranong Parkway and upgrades to roads in Gungahlin are also welcomed by the ACT Government.
We welcome the Albanese Government’s announcement of a $259.7 million investment to revitalise the Australian Institute of Sport (AIS).
Importantly, $10 million will be allocated to AIS/Bruce precinct planning. This funding from the Federal Government gives a clear indication of the broader AIS precinct’s future and it offers a collaborative pathway forward to plan and develop a new mixed-use precinct for Canberra.
The ACT Government looks forward to working with the Federal Government to revitalise the precinct with facilities like the renewed AIS arena, a new Canberra stadium, additional housing, hotels and serviced apartments, community and medical facilities, restaurants, cafes and bars.
The ACT Government will also be submitting a series of shovel-ready projects in to the $100 million Federal Government Active Transport Fund to continue expanding footpaths and cycleways across and between our town centres.
The Government will also be submitting precinct development projects to the Commonwealth’s renewed Urban Precincts and Partnerships Program, including the proposed convention and entertainment precinct in Canberra’s CBD and the Commonwealth Park Masterplan process.
Jobs for the Future
The ACT Government welcomes the Federal Government’s commitment to strengthening the integrity and quality of Australia’s international education offering, including through the Universities Accord process.
International Education is the ACT’s single largest export industry, and our world-class higher education institutions are fundamental to the knowledge-based industries central to our economic growth. This is why we particularly welcome the Federal Government’s commitment to work with universities to ensure these reforms, including a potential cap on student numbers, do not adversely impact the sector.
We welcome the Future Made in Australia initiative and look forward to working with the Commonwealth Government on opportunities here in the ACT. The significant investment through the Australia Renewable Energy Agency to support the commercialisation with technologies that are critical to net zero presents employment growth opportunities here in the ACT
The $9.7 million investment by the Federal Government, matched by the ACT Government, to establish the first TAFE Electric Vehicle Centre of Excellence at CIT Fyshwick will provide innovative world class training for a future EV workforce and will develop new diploma and degree apprenticeship pathways to support a Future Made in Australia for industries developing, operating and maintaining EVs and related technology.
It was also important for small businesses in the ACT to receive support through the Budget, which includes $325 in energy bill relief for eligible small businesses and a temporary increase of the instant asset write off threshold to $20,000 for eligible assets installed and ready for use in the 2024-25 financial year.
The Federal Budget also provides certainty to the Australian Public Service workforce, many of whom are of course based here in Canberra. There are around 8,700 roles that were done by contractors or labour hire that are now being performed by public servants. This includes an additional 2,500 conversions reported in the 2024-25 Budget.
Federal Funding Agreement negotiations
Over the course of 2024 we will continue to work with the Federal Government on the National Health Reform Agreement and establishing a foundational supports framework around the NDIS. These agreements present an opportunity to improve access to healthcare and disability services with a more certain and sustainable funding base that better reflects the fiscal capacity of different levels of Government.
We will also continue to work with the Commonwealth and the Centre for Population to adjust the methodology used for the calculation of net interstate migration into the ACT. Historically this has cost the ACT tens of millions of dollars and we remain concerned the forecasts across the forward estimates continue to underestimate population growth in the ACT.
- Statement ends -
Andrew Barr, MLA | Media Releases
