The ACT Government has welcomed the 2026-27 Commonwealth Budget as a decisive shift toward fairer treatment of Canberra, tackling the most important issues facing our community.
The Commonwealth Budget's focus on housing supply, cost of living pressures and intergenerational fairness aligns with the ACT Government's priorities in tax and planning reforms focused on ensuring all Canberrans have improved access to home ownership.
It reflects continued sustained national investment in the nation's capital and responds to long‑standing ACT advocacy on the need to tackle intergenerational fairness.
Housing
Housing remains the most pressing intergenerational issue facing Canberra, particularly for younger people, families and essential workers.
This Budget recognises that housing supply must be treated as a national responsibility if we want fairness between generations.
The ACT Government welcomes the Commonwealth's investment of an additional $2 billion in the Housing Support Program for enabling infrastructure that will unlock tens of thousands of homes across Australia.
The ACT Government is well positioned to meet the funding requirements through planning reforms to build more well-located homes sooner. Access to $50 million in funding will help to deliver more homes, as the ACT continues to lead the nation in delivering the National Housing Accord.
The funding and initiatives announced today complement the work the ACT Government is undertaking to boost housing supply, and deliver more well-located homes within our existing suburban footprint.
There is no single solution to housing affordability. The reforms announced in tonight's budget to negative gearing and capital gains tax are an important step forward in addressing intergenerational equity and making the housing system fairer for more Australians.
These changes are complementary to the ACT's progressive tax reform which has seen huge reductions in stamp duty to reduce the cost of buying a home, particularly for first home buyers.
This approach has delivered real results, with owner occupier first home buyers as a percent of new financing recently hitting a 10-year high. Owner occupier first home buyers represented 26.5 per cent of the value of total new housing finance commitments in the December quarter last year.
Cost of living
The Budget delivers practical cost of living relief that matters for households today while strengthening long‑term economic participation.
We welcome the income tax cuts delivered in this Budget, which will provide meaningful relief to Canberra households and help with day‑to‑day cost of living pressures.
The tax reforms that simplify the system and recognise real work‑related costs are also welcome, including the instant tax deduction of $1000 and the Working Australians Tax Offset that will benefit 260,000 Canberrans.
Health
The Budget delivers the landmark hospitals funding agreement struck in January between the Commonwealth and states and territories, delivering long‑term certainty for public hospital funding.
This Budget reinforces that commitment as public hospital demand continues to grow and the need to sustain the long-term strength of our public health system and the National Disability Insurance Scheme.
For the ACT, strong and reliable Commonwealth hospital funding is essential. Equally important is ongoing Commonwealth investment to strengthen Medicare and expand access to healthcare options, including the permanent funding for Medicare Urgent Care Clinics.
Continued investment in Canberra
The Budget continues a clear pattern of sustained Commonwealth investment in Canberra, built across successive Albanese Government budgets since 2022.
This matters for a city that is both fast‑growing and nationally significant.
Canberra‑specific initiatives supported through the Budget include:
- Canberra–Sydney faster rail planning and corridor development, advancing a long‑term national infrastructure project that supports transport productivity and regional growth and connectivity.
- National road and transport investments, including $50 million in funding for upgrades to Drake-Brockman Drive to support the growing Ginninderry community and further unlock additional housing supply and $4.6 million in funding for the future Molonglo Parkway Drive Connector, a new east-west arterial road providing access to the new Molonglo Town Centre.
- Investment in national institutions and precincts, including $9.9 million for the National Film and Sound Archive and $3 million for the Museum of Australian Democracy, ensuring Canberra's cultural, civic and parliamentary assets remain fit for purpose.
- $30 million for an RSPCA animal welfare campus in Pialligo.
- $387.4 million to support the long-term sustainability of the CSIRO.
- $4.2 million to continue the development of Ngurra: The National Aboriginal and Torres Strait Islander Cultural Precinct in Acton.
- Enabling infrastructure and planning investments that support housing delivery, accessibility and service capacity in a growing capital city.
These are practical investments – that support jobs, connectivity, productivity and quality of life.
They reflect the reality that Canberra's infrastructure has to work harder because Canberra does more.
Canberra - Sydney rail
The Budget invests in planning and development work for faster rail between Canberra and Sydney, with a joint investment of $100 million between the Albanese, Minns and Barr Governments.
This investment will deliver practical improvements now, to make rail travel faster between the two capitals.
Fuel security
We recognise the pressure global fuel disruptions are placing on households and businesses, especially those most reliant on fuel for their day-to-day operations, and welcome the steps announced in the Budget as part of the Australian Fuel Security Resilience package.
This package is a measure that supports cost of living relief while strengthening national resilience.
Fuel security matters for household budgets and national preparedness.
Reducing exposure to global price shocks protects families today and reduces long‑term vulnerability.
