ACT Labor heir apparent Andrew Barr does not believe Chief Minister Katy Gallagher's resignation will hurt the party's chances to win re-election for a fifth term at the next election.
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Mr Barr did not think the party's long incumbency was a burden and his team would "roll up our sleeves and work hard" for Canberra in the wake of Ms Gallagher's departure.
"This is a very strong government with a plan for the future and the Canberra community understands that," he said.
"This is why they have entrusted us with the job of governing the territory.
"We will continue to provide Canberrans with a vision for our city's future, whilst providing the services Canberrans need today and will need in the future."
Australian National University political scientist John Warhurst said it could be a close race but he believed Labor was the firm favourite to win the 2016 election.
"It's true they've lost in Katy Gallagher their most popular leader, but they've got a good successor in Andrew Barr," he said.
"It's clear they've got two really big issues in Mr Fluffy and light rail so a lot depends on what happens over the next two years."
Public service retrenchments and the Abbott government's current woes might shore up support for Labor, Professor Warhurst said.
"I think it does have a pro-Labor impact in the ACT, not only because there are swinging voters so if you have a Liberal federal government they feel more strongly about having a Labor government in the ACT," he said.
"But there are also cuts to public service and I think that's something that will be used against Jeremy Hanson and the Liberal opposition whatever they do."
Mr Barr said the Abbott government's cuts had hurt the ACT.
"The community is tired of the excuses," Mr Barr said.
"However, we still have to give Canberrans a choice. For better investment to stimulate growth in our economy, for a vision of our city and for better health and education services."
Professor Warhurst said Ms Gallagher took with her a wealth of experience and popularity and her departure would signal a testing time for the new leadership.
But Mr Barr downplayed questions over the depth of experience within his team.
"Not at all concerned and very confident about the new talent coming into the ministry and assembly," he said.
Crawford School of Public Policy visiting fellow Norman Abjorenson said it would largely be "business as usual" for the party going forward.
"I don't think there's anything in the change of leadership that would give Jeremy Hanson any great hopes of victory," he said.
"This is a Labor town and a Labor government will lose government locally only when it stuffs up really badly.
"I don't see [Labor] making the mistakes that would erode its core vote at all."
