Chief Minister Andrew Barr has, in his seventh budget as ACT Treasurer, crafted a budget any state or territory Labor treasurer would be happy to go out on.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
While speculation continues about the longer term, Mr Barr said he remained optimistic" about the future, but did not detail his plans.
Two years out from the next territory election, there were few big-ticket items in the 2018-19 budget, though funding continues for the light rail and there were several smaller outlays that may keep some squeaky wheels quiet for the next year.
Mr Barr has secured a $36 million surplus, with finances in the black for the forward estimates, to continue the 20-year tax reforms to abolish stamp duty, whilst speeding up the abolition of the tax for first home buyers from next July.
That abolition will be matched with a concurrent abolition of the first home owners grant, in an agreement reached last week with other states and territories.
While many economists argue for such a reform, in addition to scaling back negative gearing and capital gains tax at a federal level, the ACT is the only jurisdiction slowly achieving it - a mean feat politically, though one likely only made possible by the territory's unique political landscape.
The political risk is illustrated in the fall-out: a surplus and partial speeding up of the tax reform agenda comes with rising taxes and rates, up around an average of seven to 10 per cent, depending on whether ratepayers are in a unit or free-standing house.
The budget also outlays funds for a range of new initiatives, almost all below $10 million a year, across most portfolios, centred primarily on boosting the city services local councils would provide in other jurisdictions.
There is also $6.5 million for specialist homelessness services, though community services circles will no doubt be disappointed by the lack of any significant injection for affordable, social or public housing, or concessions to help those in private rental keep up with the cost of living.
It seems it is designed to quell dissent while also achieving the chief minister's goal of a "balanced budget" that is not contingent on large spending cuts, that can also afford at least one big ticket infrastructure project.
It is of note that while the $1.9 billion light rail project is off the books, as is the new court precinct, almost $350 million of capital works has also been "re-profiled", and there seem to be few large-scale social projects on the cards.
Budgeting, as with governing, is about priorities.
