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ACT budget 2017: live updates and reaction

Andrew Barr is handing down his sixth ACT budget this afternoon, we'll bring you all the coverage here.

ACT Chief Minister Andrew Barr
ACT Chief Minister Andrew Barr Photo: Sitthixay Ditthavong

That's all for our live coverage of the 2017-18 ACT budget

Make sure to grab a copy of The Canberra Times or read online on Wednesday for full coverage, including reporting, commentary and David Pope's take from inside the lock-up.

The key points: 

  • the territory budget deficit will rise marginally to $83.4 million, but a surplus expected next year
  • average household rates are up 7% and 20% for units
  • the government is spending $85 million on new school facilities and technology
  • major infrastructure works including light rail and West Basin have received funding 
  • police night patrols will increase and all frontline officers will be issued with tasers

Have a great evening and thanks for reading. 

It's not exactly business as usual for the ACT's public service in this budget. There isn't much in the way of pain, either. The ACTPS will again grow its ranks in 2017-18. 

But there will be some moves to find savings too, even if the government isn't cutting its workforce. 

First, the ACT government will look to redeploy its pool of excess staff. The move has its possible downsides for employees: public servants it cannot redeploy could be retrenched. 

It's also going to ask two directorates - Justice and Community Safety, and Transport and City Services - to find savings.

Full time government staff will grow mildly, by one per cent to 20,365 in 2017-18, mainly on the back of the ACT's ambitious light rail project and recruitment of more school assistants, firefighters and police.

Hanging over all of the government's spending is one possible threat. The ACT will be watching closely as the Commonwealth makes its bid to move federal public servants to the regions, which could hurt Canberra's economy.

Here are some of the budget announcements in the areas of justice, community safety and emergencies:

  • Tasers for all frontline police officers
  • extra police to increase night patrols
  • extra support for child protection
  • funds to support mental health of paramedics and firefighters
  • improvement of Tharwa's firefighting water supply
  • more than $5 million for retrial of David Eastman
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School infrastructure was a big winner in Tuesday's budget with about $90 million to be spent in the next financial year on expanding capacity and physical improvements to schools.

The bulk will fund ongoing works with $10.5 million on new capital works and $5.8 million on public school infrastructure upgrades. Non-government schools could share in $3.75 million for infrastructure upgrades, though funding is dependent on the federal government's final schools funding policy.

Harrison, Gold Creek, Neville Bonner and Palmerston Schools, as well as the new north Gungahlin school, will receive almost $30,000 in 2017-18 as part of a program eventually expected to improve each school's capacity. 

It is expected the investment will allow for an extra 800 students over the next four years.

There's more on the budget and education here. 

Wondering what's in the budget for your part of Canberra? 

Check out these guides, by gun ACT political reporter Katie Burgess. 

Kirsten Lawson, chief ACT political reporter for the Canberra Times, has some fresh analysis of the budget right here. 

"The ACT government continued to extend rates and land tax on Tuesday's budget, announcing plans to force people who leave their homes vacant for an extended period to pay land tax," she writes. 

"The new charge for an estimated 1500 to 2200 vacant homes was one of the few surprises in Chief Minister Andrew Barr's sixth budget. For houses, land tax averages $3715 in 2017-18. For units, it averages $2227.

"The government will also reduce the discount for people who pay their rates upfront. A year ago, people who paid rate upfront received a discount of 3 per cent. It was cut to 2 per cent in last year's budget, and is cut again to just 1 per cent on Tuesday's budget."

We've got all the information you need on taxes, fees and charges

Here's a snapshot:

  • The fire and emergency services levy will increase by $42, to $294 per household from July. 
  • Land tax on investment properties to expand from next year to include vacant housing
  • Stamp duty on commercial property sales below $1.5 million will halve this year, be abolished next year
  • Annual car registration fees to rise by 5 per cent
  • parking fines will increase by 6 per cent
  • camping fees to increase by 20 per cent (an extra $1.60 to $3 per person a night)
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What changes does the budget deliver on taxes, fees and charges?

  • average household rates up 7%, or 20% for units
  • land tax on investors' properties extends to vacant housing next year
  • the emergency services levy rises to $294 per household, up by $42
  • car registration fees up 5%
  • parking fines up 6%
  • caravan rego fees halved to align with NSW
  • flat change-of-use charge of $30,000 for land rezoned to allow units

What a difference six years makes.

Here's Andrew Barr at his first budget as Treasurer in 2012, and today. 

Andrew Barr in 2012 and 2017
Andrew Barr in 2012 and 2017 Photo: CANBERRA TIMES

Here's some take out points on the ACT economy.

  • economic growth is slowing to 2.75% above inflation, still high compared to rest of Australia
  • jobs growth tipped at 1.5%, on par with national forecasts
  • the deficit will rise marginally to $83.4 million, but surplus expected next year
  • there's no significant change in size of ACT government workforce
  • the ACT will gain about 6000 people a year after slower growth during the Abbott era
  • budget papers warn of risks such as decentralisation of federal bureaucracy and flow-on effects from a potential correction in Sydney and 

ACT Opposition Leader Alistair Coe has weighed in on today's budget: 

"The money hungry ACT government is slugging households more and more in today's budget, while future generations will be forced to pay for the incompetence of Andrew Barr as Treasurer," he says in a statement.

"The bottom line is, this budget will make it more difficult to live, work and raise a family in Canberra." 

"While Andrew Barr has his own spin, the real numbers in this budget paint a worrying picture. The ACT's net debt will reach nearly $3.5 billion next year. Revenue for the first time will exceed $6 billion. Stamp duty, which the government promised to abolish, will bring in $300 million this year while interest payments total $194 million this year."

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The Treasurer is using his budget speech to emphasise Labor's election commitments from last year's territory and election, as well as health and education. 

"The government went to the last election with a positive plan for renewal right across our city and suburbs," he has just told the Legislative Assembly. 

"This Budget starts delivering it. We are making Canberra's schools better by delivering classroom and facilities upgrades across the Territory, expanding four Gungahlin schools, and getting work underway for a new school in the Molonglo Valley.

"We are renewing our city's health services by delivering and planning for new Walk in Centres at Gungahlin, Weston Creek and the Inner North, the significant new Surgical Procedures, Interventional Radiology and Emergency Centre, or 'SPIRE', in Woden, a future northside hospital, and upgrading cancer and aged care facilities at the Canberra Hospital." 

 

ACT Chief Minister Andrew Barr answers questions from the media on the ACT Budget.
ACT Chief Minister Andrew Barr answers questions from the media on the ACT Budget. Photo: Sitthixay Ditthavong

Budget analysis

Our budget team, led by Kirsten Lawson, Katie Burgess and Markus Mannheim break down the budget.

 

The Canberra Times Assembly team have just been let out of the ACT budget lock-up and are discussing what it means for the city.

Posted by The Canberra Times on Monday, June 5, 2017

Today's budget is a significant one for education in the ACT. 

The government plans to hire three workplace safety experts dedicated to fighting violence against teachers and principals in Canberra's public schools, following a campaign by the union. 

The plan includes a risk assessment, problem-solving and preventative approaches to make sure school environments are safe. In the first half of last year, there were 30 incidents of violence against public school principals and almost 200 reported incidents against teachers and principals.

I will have more on this and other education spending soon. 

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