Last week we saw the ACT Government deliver the first budget of the Territory’s Eleventh Legislative Assembly, and despite some support for social and affordable housing, there was very little joy elsewhere for the residential building industry.

With the budget recording a $1.1 billion deficit, business and residents are facing a raft of increased taxes and fees as the government tries to climb back out of the budgetary hole it is in. Members can see the full details in our recent 2025/26 ACT Budget alert, but here are a few of the highlights.

Construction occupation licence fees will increase by 7.9%, building Levy will go up by 1.54%, and commercial waste disposal fees below 250kg are increasing by 8.4% and over 250kg by 51.1%. Also, duty on vehicles over $80,000 will increase to 8%. The Payroll Tax threshold has fallen from $2 million to $1.7 million, which is partially balanced by a reduction in the rate from 6.85% to 6.75%. This will benefit some already paying the tax but is no consolation for the small businesses now captured.

Since the budget was released, and unable get support from the Opposition and Crossbench, the government has since slashed the $250 health levy to $100 for general ratepayers. However, the impost on commercial rates remains unchanged. The lost revenue has been offset by an additional 2% payroll tax levy on very large businesses.

On a positive note, it has been fantastic to see a number of regional members as we’ve been out and about over the last few weeks. It was a great attendance at the recent economics breakfast in Wagga, and at our inaugural Building Women event on the south coast.

Lastly, thank you to everyone who has entered this year’s housing awards - we’ve had the highest number of entries since before the pandemic, and with judging starting shortly, I’m looking forward to finding out later this year who will be the 2025 winners.