Australian Capital Territory Budget 2026-27

11 June 2026

On Tuesday 11 June 2026, Australian Capital Territory (ACT) Treasurer Chris Steel MLA delivered the 2026-27 Budget.

The Budget outlines the Government’s plan to respond to areas of priority community need and support continued services for all of Canberra. Affordable and secure housing is a top priority, with funding to deliver new public homes, support the construction of more affordable homes and public housing dwellings. The Government is eliminating stamp duty for all first home buyers.

The Budget strengthens support for community sector partners delivering critical services, including increased investment in domestic, family and sexual violence prevention, homelessness support and services for Aboriginal and Torres Strait Islander Canberrans. Significant investments are also being made in the public health system, including the new Northside Hospital, as well as public schools, city services, public transport and emergency services.

The Headline Net Operating Balance forecast to improve from a deficit of 323.4 million in 2026-27, an improvement of 178.3 million from 2025-26 and reaching a balance in 2027-28 and a surplus of $244.2 million by 2028-29. A key target has also been set to maintain net debt below 19 per cent of Gross State Product.

To support fiscal sustainability, the Government has reset its Infrastructure Investment Program to a sustainable baseline of less than $1 billion per year across the forward estimates, is restructuring the public sector workforce and limiting agency expenditure growth.

The ACT economy recorded 3.5 per cent growth in 2024-25, though near-term moderation is expected due to global uncertainty. Growth is forecast to strengthen from 2027-28, supported by a strong labour market, improving household consumption and sustained public demand.

The Budget continues to be guided by the Wellbeing Framework, embedding community outcomes and quality of life at the centre of policy and budget decisions to promote intergenerational equity and the long-term wellbeing of Canberrans.

The 2026-27 Budget can be found here.

The Treasurer’s Budget Address can be found here.

Table of Contents

Budget Outlook and Fiscal Target Outcomes……………………………………………………………………………………1

Housing………………………………………………………………………………………3

Health ………………………………………………………………………………………..4

Justice, Police and Emergency Services ……………………………………..5

Transport, City Services, Environment and Climate ……………………..5

Education and Training ……………………………………………………………….7

Tourism, Arts and Sport ………………………………………………………………8

Housing

The Budget will invest $770 million in new and expanded housing initiatives to ensure access to secure and affordable housing. The Government is investing in supply of more homes with new funding in the delivery of public and community housing to support the growth of housing stock and the Government’s commitment to 13,200 public housing dwellings by 2030. Further reforms through the new Missing Middle Housing Reforms will support the Government’s commitment to enable 30,000 more homes by 2030.

There is significant investment in public housing:

• Over $360 million to deliver 450 additional public housing dwellings
• Over $90 million in capital funding to meet the commitment of 1,000 property renewals and supporting the ongoing delivery of the Growing and Renewing Public Housing program
• $180 million to uplift public housing repairs and maintenance program
• Delivery of crisis and transitional housing for vulnerable cohorts across 28 dwellings under the Commonwealth’s National Housing Infrastructure Facility Crisis and Transitional Housing Program
• Supporting applications for over 1,000 affordable homes through the Housing Australia Future Fund
• $1 million to commission the Canberra House Pattern Book
• Temporary 50% remission of the codified Lease Variation Charge for developments in Suburban and Suburban Core to support the uptake of the missing middle house developments

Delivering targeted assistance to low-income households experiencing rental stress through a new Housing Crisis Support Fund. This will provide:

• direct support for short-term rental costs which includes grants covering up to four weeks’ rent (capped at $2,500)
•  new $250 Crisis Support Payment to assist with essential household expenses such as utilities, insurance and basic furnishings
• The Government is investing more in our homeless and housing support service providers with an investment of more than $16 million in critical services
• Budget will expand the Housing Asset Assistance Program portfolio by 65 properties and 10 additional Housing First properties.

The Government will expand stamp duty concessions from July 1, 2026, onwards, with which the Government will offset the cost of this initiatives from the tax reform component of general rates revenue

Health

The Budget outlines an increase in investment to improve access to health services, increase infrastructure and equipment, and support critical public health safety. Additionally, it responds to the rising cost of, public hospital services.

• $1.7 billion investment over 7 years to delivery the new Northside Hospital
• $47.6 million to vital services
• $14.1 million investment in the development of junior doctors in the hospital system
• $21.7 million for new medical equipment

$910 million over four years to support public health care, mental health and community wellbeing and health infrastructure

• Upgrades to critical hospital infrastructure and medical equipment
• Operations at the South Tuggeranong Health Centre
• An outpatient transport service
• Safe and effective management of medicine and vaccination
• Additional funding to support free abortion services for ACT residents
• Development of voluntary assisted dying substitute decision-making legislative reform
• Expansion of Autism Spectrum Disorder assessment

Justice, Police and Emergency Services

This Budget delivers more first responders, new infrastructure, upgraded systems and new equipment to improve emergency services coverage across Canberra. The 2026-27 Budget includes new initiatives worth $198.3 million over four years to support the justice system and police and emergency services.

This Budget invests $18.9 million in the Office of the Director of Public Prosecutions (DPP) to strengthen access to justice in our community. This initiative funds 24 new and permanent positions.

The 2026-27 Budget includes:

• Additional resourcing for the ACT Government Solicitor’s Office, the Human Rights Commission
• Grants of assistance to vulnerable and low income applicants for Legal Aid
• Implementation of the national gun buyback scheme and digitisation of the ACT’s Firearms Registry
• Ongoing operation of Circle Sentencing in the ACT Supreme Court
• Continuation of the Justice Housing Program and the Aboriginal and Torres Strait Islander Transitional Accommodation Program
• Continued delivery of Integrated Case Management for Aboriginal and Torres Strait Islander detainees
• A six-month Board of Inquiry into Aboriginal and Torres Strait Islander deaths in custody at the Alexander Maconochie Centre
• Development of an Emergency Services Agency Infrastructure Master Plan

Transport and City Services, Environment and Climate

The Budget further invests in suburban infrastructure, frontline services, parks and the Government’s commitment to reach net zero by 2045 and increase environmental protections.

The 2026-27 Budget includes new initiatives worth $343.1 million over four years. With $65 million to support better local infrastructure and frontline services including:

• Upgrades to the local shopping centres, a new public toilet for the Umbagong District Park and construction of the Hall Village Main Active Travel Route from Hall Village to Gold Creek
• Continued investment in important bushfire risk reduction
• Further support for city services, including mowing, street sweeping and horticultural services

Continued support for climate and the environment including:

• Delivering the next Climate Change Strategy and first Action Plan
• Expanding the ACT Environment Grants Program, with funding for local community environment groups
• Continuing the Renters’ Home Energy and the Home Energy Support Program
• Increasing the Sustainable Household Scheme loan cap to $20,000
• Funding a specialised biosecurity team
• Replacement of inefficient household tapware, education for consumers to increase water efficiency, measures to improve water quality in Lake Tuggeranong

Investment in public transport including:

• More funding to support safe and reliable transport services
• Continued delivery of the light rail from the City to Woden through the delivery of Light Rail Stage 2A to Commonwealth Park
• Reducing the monthly fare cap for tertiary students

The ACT Government is investing $25 million to improve train travel between Canberra and Sydney. This project is a joint initiative with the NSW and Commonwealth Governments. The total investment is $100 million, with the Commonwealth contributing $50 million and NSW contributing $25 million.

Education and Training 

The Budget provides over $14 million to support quality early childhood education. Including:

• Additional funding under the extended Preschool Reform Agreement
• Ongoing resourcing for the Education Directorate
• Additional capacity for the ACT Children’s Education and Care Assurance regulator
• Funding the Teacher Quality Institute

The Budget includes $253 million over four years to support education and skills

• Over $46 million to support Stage 2 of the Whitlam School Project and construction of a second college in Gungahlin
• $3 million to continue free four year old preschool program in 2026 and 2027
• A 2026 round of the Future of Education Student Equity Fund and the Head Start Program in 2027

Investment of nearly $100 million to support future workforce including:

• Establishment of the University of New South Wales Canberra City Campus
• Progressing the Electric Vehicle TAFE Centre of Excellence
• Working with the Commonwealth Government on the extension of feefree TAFE training to an additional 9,093 training places in healthcare, advanced technology, construction, hospitality and foundation skills
• Operationalising the Canberra Institute of Technology (CIT) Woden Campus

Community Services and Safety

The Budget provides new initiatives worth $182.6 million over four years to community support, safety and inclusion. As part of the 2026-27 ACT Budget, the Government is investing $44.2 million to strengthen frontline domestic, family and sexual violence services and provide secure, long‑term funding.

This Budget continues to support key initiatives, including funding ongoing delivery of the National Multicultural Festival, delivering the Gender Pathways Peer Navigation Service and providing free period products in public facilities.

The 2026-27 Budget also funds:

• Ongoing funding for the community legal sector, including Canberra Community Law, the Women’s Legal Centre and the Aboriginal Legal Service
• Additional food relief and emergency material aid
• Delivery of residential care, crisis accommodation and emergency supports for children and young people who cannot remain safely with their families
• Continuation of the Children and Young People Equipment Loan Scheme
• Commitments under the National Agreement on Foundational Supports – Thriving Kids bilateral agreement
• Sustainable operations at the Bimberi Youth Justice Centre
• Continuation of the Family Settlement Assistance Grants program and the Humanitarian Fund.

This Budget continues investment for Aboriginal and Torres Strait Islander through healthcare, education, housing, cultural projects and governance. This investment includes:

• $1.2 million for a culturally informed perinatal mental health ‘Safe Space’ service
• $1.9 million to boost the Aboriginal and Torres Strait Islander health workforce in the ACT
• $500,000 to support Yerrabi Yurwang’s Housing Australia Future Fund application for building costs of a 29-dwelling townhouse development in Moncrieff
• $754,000 to commence a Truth Telling (Seed of Truth) Project with community to advance the Government’s commitment to the Uluru Statement from the Heart
• $1.8 million to strengthen oversight of justice system reforms and fund two independent justice advisors to support the Jumbunna review response, and to expand capacity for the Aboriginal and Torres Strait Islander Elected Body

Tourism, Arts and Sport

The Government is continuing to deliver on the objectives of its T2030 ACT Tourism Strategy by investing in the growth of visitors and visitor spend, tourism industry development and major events. The budget is also providing support artists, organisations and creative businesses and continued funding for local sports and existing facilities.

The 2026-27 Budget includes new initiatives worth $143.5 million over four years to support tourism, arts and sports, including:

• Progressing the new National Convention and Entertainment Centre project
• An investment of $7 million for the continuation and expansion of the Major Event Fund
• Development of a new ACT aquatic strategy and feasibility studies for new sporting pavilions at Amaroo District Playing Fields and Kambah District Playing Fields
• Support to host international cricket matches at Manuka, in partnership with Cricket Australia
• Increasing funding for arts organisations in the ACT by 25 per cent plus indexation, with an investment of over $8 million
• Upgrades across Canberra Stadium, Exhibition Park in Canberra, Manuka Oval, the National Arboretum Canberra and Stromlo Forest Park
• Continued funding for Screen Canberra
• Extending Floriade’s operating hours

Additional Occasional Papers published by Hawker Britton are available here. 

Further Information 

For more information, please contact Hawker Britton’s Partner and CEO  Simon Banks on +61 419 638 587.