CANBERRA DESERVES BETTER THAN ANOTHER ACT LABOR BUDGET TRAIN WRECK

Before the ACT Budget, the Canberra Liberals have been spending many weeks together, listening to the local community. These conversations have driven our decisions and outlook so far.

Now, less than a week after delivering a budget that slugged Canberrans with higher and new taxes, the ACT Labor Treasurer has been forced to admit his 2025-26 Budget is a trainwreck.

The Labor-Green Budget deal is a last-minute revelation that keeps both the health tax and the increase on payroll tax on jobs, a terrible outcome for Canberra.

Canberrans are still stuck with paying a $100 ‘health tax’.  It is still a tax that breaches the principle of universal healthcare according to his federal Minister for Health colleague.

The Canberra Liberals welcome any reduction in the massive ‘health tax’ that was announced but the fact remains that if ACT Labor had been able to manage the budget responsibly, we wouldn’t have needed any new taxes.

Now, it will be business in the ACT that will be slugged with higher payroll taxes. This will have a direct effect on jobs, on business costs and on investment in the ACT.

Higher taxes means businesses will forced to pass on these higher costs, meaning grocery and other costs will be forced up.

But the Treasurer obviously knows the consequences of higher payroll taxes on jobs and the cost of groceries.

On ABC radio on Friday the 27 June, 2025, Treasurer Chris Steel said this:

I haven’t heard that from the Greens other than a suggestion that they would, that they want to introduce a super tax on super-markets, which would increase grocery prices, with a massive payroll tax double that of NSW, that could see job losses, particularly in low income Canberrans working in retailers around the Territory.

So, the Treasurer knows the consequences of the Greens policy, knows it will hurt low income earners both in jobs and grocery bills, and yet has kowtowed to the Greens.

So now the ACT Labor Treasurer has decided to not just punish ratepayers with a new tax, he’s going to punish local businesses with even higher taxes. The Treasurer is clearly so desperate to raise money he’s left all sensible, financial, decision-making behind.

Demonstrating how much of a financial train-wreck this ACT Labor Budget is becoming, the Treasurer in the same interview said he also needed an extra $50 million to fund health care in the next year.

The Canberra Liberals simply point out that if the Treasurer hadn’t wasted $78 million on his own failed HR project, we would have the funds already plus extra taxpayers cash to invest.

The Canberra Liberals are the only political party that believes in keeping taxes low to keep the pressures on the cost of living down.

Higher taxes hurt all Canberrans, whether you’re a ratepayer, a renter, a public servant, work in business or own a business.