The ACT had been "overlooked rather than attacked" in the federal budget, Chief Minister Andrew Barr said on Tuesday night, highlighting a lack of significant infrastructure spending for Canberra.
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But he said the ACT would look closely at the commitment to invest in major rail projects.
"A dedicated fast rail link between Sydney and Canberra would have major benefits to both major cities, and I look forward joining the federal government and NSW government playing a constructive role in delivering this important project," he said.
An hour after the budget was handed down, Mr Barr said a letter had arrived from Prime Minister Malcolm Turnbull. "Infrastructure highlights for the ACT: $1.5m towards planning for the Pialligo Avenue duplication. That's it," Mr Barr tweeted, with a copy of the letter.
"While it's better to be ignored than attacked, Canberrans have every right to feel short changed by the Liberals," he said. "There is no support for any major transport projects in the ACT, and the promised Barton Highway upgrades are not funded in this year's budget."
But Mr Barr was relieved that Canberra's commonwealth funding held up, with no major cuts to the public service, and some extra money for the national institutions.
Canberra's share of GST funding from the commonwealth is up slightly on the current year, to $1.2 billion. Adding funding for specific programs, total federal funding reaches $2.1 billion, $71 million more than the current year.
Feared cuts to the national partnership agreement on skills reform, focused on vocational education and training did not eventuate. The five-year program runs out in June, and the ACT had feared it would fold, but the commonwealth has replaced it with a "skilling Australians fund", focused on apprenticeships and traineeships in occupations in high demand, rural areas and trades. The program will be funded through a hefty new levy on businesses that employ foreign workers on some skilled visas.
The federal government is also re-targeting the funding that goes to states for affordable housing from 2018-19. Rather than paying for social housing, rent help and accommodation for the homeless, the program will be tied more closely to state and territory housing supply targets, planning and zoning changes, and renewing public housing, as well as homelessness services. States will have to focus on priority occupations to get the funding, and will have to match the money themselves.
Mr Barr said with education the city's largest export earner, the 2.5 per cent efficiency dividend would hamper efforts to grow the sector.
"Our tertiary education sector is a vital growth industry for our city. This new saving measure will hold back important institutions like the University of Canberra, the Australian National University and UNSW Canberra," he said.
"We are also concerned about the Government doubling down on decentralisation of the public service. We have seen how disastrous the relocation of the APMVA has been, and while they have outlined some guidelines for further relocations of public service agencies – this is still a hankering to take public service jobs away from the national capital."
He welcomed the funding for the national institutions, which he said had done too much heavy lifting over recent budgets.
Canberra Business Chamber chief executive Robyn Hendry welcomed increases to traineeship and apprenticeship numbers. and said moves to improve housing affordability would help the ACT keep and attract essential workers.
But the new levy on businesses employing skilled workers would slug ACT businesses $1200 to $3000, leaving education, ICT, cyber-security, astronomy and similar industries struggling to compete with other countries.
"Canberra is a new-industries, knowledge economy and that means we have a greater reliance on workers with skills often in short supply," she said.
The biggest shortcoming of the budget for the ACT was that it almost completely ignored the territory in its $75 billion in infrastructure funding. Tasmania and the Northern Territory were getting significant new funds, but the ACT was getting "a paltry $3 million to plan two road upgrades".
Ms Hendry said the chosen fast rail business cases should recognise the need for improved rail between Canberra, Sydney and Melbourne.
Liberal Senator for Canberra Zed Seselja said the budget made a "huge investment" in Canberra, through more money for the national institutions, $3 million for design for Monaro Highway and Pialligo Avenue duplications. He also pointed to roads funding, through the roads to recovery program and the black spots programs.
ACT Liberal leader Alistair Coe welcomed an increase of 3 per cent in Commonwealth payments to the ACT.
Labor Senator for Canberra Katy Gallagher said the budget blatantly disrespected Canberra, delivering nothing in infrastructure or jobs growth for the city or region.
"In a big spending infrastructure budget a miserly $1.5 million to plan for a road is insulting," she said. "There are cuts to Catholic schools, further job losses across the [public service] and a continued efficiency dividend on the public service."
