Chief Minister Andrew Barr will on Wednesday use his annual "State of the Territory" address to announce rate freezes for about two thirds of home owners.

He says the announcement, combined with a $150 rebate, will provide a rates reduction for more than 110,000 Canberra households and 4600 commercial property owners.

Thousands more will effectively see no increase in their rates.

However about 18,000 homeowners, whose land value has significantly increased, will still be slugged rates increases of between 1 and 2 per cent.

Rates are likely to feature heavily in the lead-up to the October territory election. Opposition Leader Alistair Coe has already promised to freeze all rates if he becomes chief minister.

"The only way to fix Canberra's cost of living crisis and help families get ahead is to change government," Mr Coe said this week.

"Even before the COVID-19 pandemic, Labor's record increases to rates and taxes were hurting thousands of struggling families and households right across the ACT.

"Only the Canberra Liberals will freeze rates from day one in government to reduce pressures on families and help more Canberrans get ahead."

Canberrans have been stung by years of rates increases, after the government in 2012 embarked on a 20-year taxation reform program.

It aims to phase out stamp duty in favour of land-based taxes like rates.

Mr Barr will use his speech to highlight the economic challenges faced by the territory due to the coronavirus pandemic.

He will pre-empt a deterioration in the territory's fiscal position, with debt expected to rise.

"In times of economic contraction, a temporary increase in government spending is an important and powerful tool," Mr Barr will say in the speech.

"Right now, economic support and growth is the priority, not chasing budget surpluses."

He is due to provide a detailed statement on the budget outlook in late August, which will set out the financial recovery pathway for Canberra.

"This is not the State of the Territory address we would have envisaged at the beginning of the year," he will say.

"Today, we are months into a public health emergency and rolling, global health and economic crisis.

"At this stage, it is impossible to accurately quantify the full impact of the continuing pandemic, but the economic ramifications and personal toll will be immense."

Mr Barr will say the coronavirus pandemic is the biggest challenge the ACT has ever faced in the self-government era.

He will claim the ACT is in one of the strongest positions in the world due to early steps to reduce the risk of transmission.

"The pain has been felt by everyone," he will say.

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"Now, we are grappling with a global public health emergency and resulting global recession.

"Businesses have been forced to rapidly adjust to physical distancing measures and complete sector shutdowns.

"The accommodation, hospitality, entertainment and retail sectors have been particularly hard hit."

Mr Barr will note the territory's universities have been significantly affected, with travel restrictions preventing about 3500 international students from embarking on their studies in Canberra.

"As part of the ACT's recovery plan, the ACT government is also putting our city forward to be a pilot city for the return of both international flights and international students," he will say.

Wednesday's rates announcement came after the government on Monday announced a range of other fees and charges will be frozen.