ACT LABOR’S $250 HEALTH TAX CREATES WAR OF WORDS WITH FEDERAL LABOR

Leanne Castley MLA

Leader of the ACT Liberals

Media Release

25 June 2025

Reports today in the Australian Financial Review* that the Federal Labor Health Minister Mark Butler has sought to distance himself from ACT Labor’s new $250 health tax because it breaches the notion of universal health care is astounding.

The Federal Health Minister has also blown away claims by ACT Treasurer Chris Steel that the Federal Government is not funding the ACT health system properly, revealing that the Commonwealth will increase funding by 16 per cent next week.

ACT Liberal Leader and Shadow Health Minister Leanne Castley MLA said this afternoon that the extraordinary war of words that has broken out demonstrates why Canberrans should feel betrayed by the introduction of the new $250 health tax.

“Not only has the Federal Health Minister accused the ACT Treasurer of breaching one of Labor’s core principles, he has also belled the cat in terms of the reality of Commonwealth funding,” Ms Castley said.

“By slugging Canberrans with a new $250 health tax, he is making the cost of living worse, putting pressure on households to meet their weekly budget.

“The new health tax is a direct consequence of ACT Labor failing to manage the ACT’s finances responsibly.

“But even more critically, one of the reasons for the introduction of the new $250 health tax - according to the ACT Treasurer himself - has been poor Commonwealth funding.

But now, the Federal Health Minister has contradicted him by saying:

“I’m not sure there’s ever been a bigger increase in Commonwealth funding to the ACT hospital system than the one that we will deliver next week.”

“We now demand some clarity around health funding: do we really need ACT Labor’s new $250 health tax to cover costs, or is the Treasurer simply slugging Canberrans a new tax to pay for their incompetence?

“If the Federal Health Minister is to be believed on the increase in Commonwealth funding, the entire premise for the new health tax is false. 

“Either way, ACT Labor and the Treasurer have some serious explaining to do to all Canberrans.  The provision of health services to ACT residents is far too important to be used as a political football by either ACT or Federal Labor.”

ENDS 

NB: AFR story here (paywall): https://www.afr.com/politics/federal/hospital-tax-makes-mockery-of-labor-s-health-claims-libs-20250625-p5ma2j