26 June 2025
The 2025-26 ACT Budget was just released, detailing the ACT Government’s priorities for the coming financial year and beyond.
A central theme of the budget is the need to manage increasing expenditure on health services, with measures to reduce the budget deficit by approximately $600M to $425M and return to surplus in four years’ time. Rate increases will occur across the ACT and particularly on lots with an unimproved land value of over $1M.
There is much of relevance to planning and the built environment, perhaps most significantly a new Housing Supply and Land Release Program, along with other housing initiatives, continued support for Stage 2A of the Canberra light rail, investment in active travel, and a new Office of Landscape Architect. These focus areas are outlined below.
Health
Health is the key focus of this ACT Budget, with significant expenditure on existing and expanded health services and major investments in health infrastructure including:
• Early works for the new Northside Hospital,
• The Canberra Hospital Master Plan, and
• Construction of the Inner South Health Centre.
Housing
The ACT Government’s Budget Overview states “We recognise that the solution lies in strategic investment at all levels, including public, community and affordable housing”. PIA is pleased to see the importance of strategy referenced – this is essential to connect infrastructure and development to maximise public value from Canberra’s growth.
The Budget reinforces the ACT Government’s goal of 30k new homes enabled by 2030. The main initiative towards achieving this in this year’s budget is a new Housing Supply and Land Release Program with 25,948 dwellings projected from 2025-2030. Importantly, 23,596 of these are multi-unit and just 2,379 are single dwellings – supported by changes recently announced to increase permissibility for infill developments. New land releases will require 20% of homes for public, community or affordable housing, up from 15%.
The Program states that new releases will align with the recently completed District Strategies, but also respond to the Minister’s Statement of Priorities. PIA supports a citywide approach to land release, with commitment to infill growth and non-residential land releases integrated. It will be crucial to ensure that new housing is sequenced with the infrastructure upgrades to support it – funded by measures including the Lease Variation Charge.
Other housing initiatives include:
• A $20M funding increase for the Affordable Housing Project Fund (subsidies for affordable housing providers).
• Continuing investment in public housing – with a target to increase public housing stock from 11,879 to 11,995 homes in the coming financial year and 13,200 by 2030.
• There is also substantial investment in accessibility and energy efficiency upgrades for public housing.
• Financial support for low-income homebuyers experiencing delays in the construction of their house and land packages purchased under the Affordable Home Purchase Scheme.
Transport and city services
On transport, the Budget pledges continued support for extending Canberra’s light rail from the City to Woden under Stage 2A, funding enabling works including raising London Circuit.
There is $38M to implement the Active Travel Plan released in 2024, including:
• New and improved lighting along paths,
• An upgrade of the Lake Ginninderra Shared Path, and
• A “path upgrade design and construction package”.
The ACT’s tree planting program received ongoing support, with a stated aim to achieve “30 per cent urban tree canopy cover in Canberra by 2045”.
Environment
The Budget includes strong measures for electrification of housing and infrastructure, including replacing gas appliances in public housing dwellings.
A new Office of Landscape Architect will be established to progress delivery of the first ACT Landscape Plan. PIA recognises the potential of this initiative to uphold the landscape qualities which define Canberra as its urban form grows and becomes denser.
Full budget papers for the 2025-26 ACT Budget are available here.