ACT GOVERNMENT LOSING MORE TO INTEREST REPAYMENTS WHILE HEALTH FUNDING ACTUALLY FALLS
Shadow Treasurer Ed Cocks MLA has criticised the ACT Labor Government’s budget priorities after the 2025-26 Budget revealed interest payments have surged to become the largest area of spending growth for2025-26, while health funding is forecast to be lower than 2024-25.
“Interest on the ACT’s growing debt is growing faster than spending on Health, Education or Housing,” Mr Cocks said. “That tells you something about where Labor’s priorities lie.”
Despite introducing a new $250 health tax for households, the Budget shows health funding has gone backwards, with a decrease in expenditure compared to last year. Meanwhile, interest will skyrocket by more than 25% in a single year, far outpacing growth in any frontline service.
“Canberrans are smart people. The Government can’t dress up a tax grab as a ‘Health Levy’ at the same time as reducing health funding, and assume no one is going to notice.” Mr Cocks said.
“Calling this a ‘Health Levy’ while cutting funding for health is nothing but spin, and Canberrans are smart enough to see through it.”
The Budget also reveals that the Government has increased or introduced at least 25 fees, charges and taxes in the past year.
“Canberrans are being hit from all sides - record rates, more levies, and higher charges. But yet the biggest growth in spending isn’t on schools, hospitals or community safety. It’s interest repayments on Labor’s record debt” Mr Cocks said.
Spending in key areas like education, transport, and public safety has grown modestly, but nowhere near as much as interest expenses, a direct consequence of the ACT’s mounting debt.
“This isn’t sustainable. Interest payments are dead money. They don’t treat patients or educate children, they’re the cost of a Government that has failed to manage the budget properly for over a decade.”
Mr Cocks said the ACT Government needs to urgently rethink its fiscal strategy.
“When you’re taking more from households and giving them less in return, something is fundamentally broken. Canberrans deserve a Government that puts people and services first, not one that throws money away on interest.”
ENDS
|
Function($,000) |
2024-25 |
2025-26 |
% |
2028-29 |
% | |
|
Interest expense |
502,018 |
629,414 |
25.38% |
974,416 |
94.10% | |
|
Environmental protection |
270,778 |
300,684 |
11.04% |
279,232 |
3.12% | |
|
Social protection |
609,540 |
659,810 |
8.25% |
662,968 |
8.77% | |
|
Housing and community amenities |
86,256 |
91,486 |
6.06% |
89,241 |
3.46% | |
|
Education |
1,886,535 |
1,984,260 |
5.18% |
2,109,356 |
11.81% | |
|
Transport |
541,290 |
566,451 |
4.65% |
571,449 |
5.57% | |
|
Public order and safety |
713,160 |
740,492 |
3.83% |
750,932 |
5.30% | |
|
Health |
2,791,876 |
2,787,716 |
-0.15% |
2,967,808 |
6.30% | |
|
Recreation, culture and religion |
242,688 |
228,339 |
-5.91% |
221,118 |
-8.89% | |
|
Economic affairs |
191,805 |
172,793 |
-9.91% |
128,591 |
-32.96% | |
