ACT budget shows population, economy are set for growth

ACT Chief Minister Andrew Barr has handed down a budget aimed at cost-of-living relief. (Mick Tsikas/AAP PHOTOS)

Canberra's economy isn't the only thing set to grow in the national capital, with the ACT tipped to have the fastest population growth rate in the country.

As Chief Minister and Treasurer Andrew Barr handed down his 12th territory budget on Tuesday, nationally low unemployment and high population growth are set to propel the ACT back into surplus.

A deficit of $442.7 million has been forecast for the 2023/24 financial year, but the territory is set to be $141.9 million in the black by 2025/26.

"While the outlook for the Australian economy remains uncertain, the ACT economy is well placed to continue to grow, and improve the wellbeing of Canberrans," the budget papers said.

Canberra's population is set to swell by almost 10,000 people in the upcoming financial year, with the ACT on track to become the fastest-growing state or territory by 2026/27.

The historically high growth rates of more than two per cent in both 2022/23 and 2023/24 have been driven by the return of international students and skilled migrants following a COVID-driven downturn.

The population of the territory is set to grow on average by 1.75 per cent over the next decade.

To meet the expected growth, $1.6 billion will be spent on infrastructure in the upcoming financial year, with more than $8 billion to be splashed out over the next five years.

Housing demand is also set to grow as a result, with the budget setting aside $345 million for initiatives such as improving access and easing rental stress.

There will be $60 million for a project fund to support long-term affordable rental houses.

Rental vacancy rates in the ACT are the highest in Australia, while dwelling stock grew by 2.6 per cent through to the March quarter this year.

"This suggests that supply in the market is better accommodating demand, despite strong population growth," the budget papers said.

Unemployment in the territory is 2.9 per cent, the lowest in the country, with the ACT's economy set to grow by 3.75 per cent during 2022/23.

The budget has forecast that while economic growth would be moderate in the coming financial year, it would be strengthened from 2024/25, following a rise in real wages and stronger household consumption spending patterns.

Amid rising power prices across the states and territories, the ACT is expected to see just a $75 annual rise for a typical electricity bill.

"Despite this increase, the average annual bill for Canberrans on standing offers will remain the lowest in Australia compared to the average standing offer bills faced by customers in NSW, Victoria, Queensland and SA," the budget papers said.

The government will also lift the price cap for the owner-occupier duty concession for stamp duty on off-the-plan purchases by $100,000 to $700,000 in 2023/24.

It will further reduce stamp duty for all owner-occupier purchases under $1,455,000.

A further $37.8 million will be spent to provide cost-of-living relief for low-income households.

License this article

What is AAPNews?

For the first time, Australian Associated Press is delivering news straight to the consumer.

No ads. No spin. News straight-up.

Not only do you get to enjoy high-quality news delivered straight to your desktop or device, you do so in the knowledge you are supporting media diversity in Australia.

AAP Is Australia’s only independent newswire service, free from political and commercial influence, producing fact-based public interest journalism across a range of topics including politics, courts, sport, finance and entertainment.

What is AAPNews?
The Morning Wire

Wake up to AAPNews’ morning news bulletin delivered straight to your inbox or mobile device, bringing you up to speed with all that has happened overnight at home and abroad, as well as setting you up what the day has in store.

AAPNews Morning Wire
AAPNews Breaking News
Breaking News

Be the first to know when major breaking news happens.


Notifications will be sent to your device whenever a big story breaks, ensuring you are never in the dark when the talking points happen.

Focused Content

Enjoy the best of AAP’s specialised Topics in Focus. AAP has reporters dedicated to bringing you hard news and feature content across a range of specialised topics including Environment, Agriculture, Future Economies, Arts and Refugee Issues.

AAPNews Focussed Content
Subscription Plans

Choose the plan that best fits your needs. AAPNews offers two basic subscriptions, all billed monthly.

Once you sign up, you will have seven days to test out the service before being billed.

AAPNews Full Access Plan
Full Access
AU$10
  • Enjoy all that AAPNews has to offer
  • Access to breaking news notifications and bulletins
  • Includes access to all AAPNews’ specialised topics
Join Now
AAPNews Student Access Plan
Student Access
AU$5
  • Gain access via a verified student email account
  • Enjoy all the benefits of the ‘Full Access’ plan at a reduced rate
  • Subscription renews each month
Join Now
AAPNews Annual Access Plan
Annual Access
AU$99
  • All the benefits of the 'Full Access' subscription at a discounted rate
  • Subscription automatically renews after 12 months
Join Now

AAPNews also offers enterprise deals for businesses so you can provide an AAPNews account for your team, organisation or customers. Click here to contact AAP to sign-up your business today.

SEVEN DAYS FREE
Download the app
Download AAPNews on the App StoreDownload AAPNews on the Google Play Store