Minister Barr: 2015-16 ACT Budget Review amp; Infrastructure Plan Update
- Written by ACT Government
Released 18/12/2015
The 2015-16 ACT Budget Review confirms that the Government is keeping the Territory’s economy on track, despite the financial pressures caused by reductions in Commonwealth grants, cuts to health funding and the ongoing response to the Mr Fluffy legacy.
The delivery of this Review is a strong performance – especially when compared to the Federal Government’s response to MYEFO. Rather than cutting services that many people in the community rely on, the ACT Government is managing the economy carefully in the short term while returning the budget to balance over the medium term.
A signal of the strength of our economy and budget, through all the cuts and external pressures, is that the ACT has maintained its AAA Stable credit rating – the highest rating possible.
I’m proud that the Government has been able to achieve our vision for Canberra and continue providing significant support to the Canberra community. The investments announced in the 2015 16 Budget continue to progress, with record investments in our health and education systems. Unlike Liberal Governments in this country, we are ensuring that economic pressures don’t affect the vital health services Canberrans rely on most, as we have continued investing in Canberra’s hospitals and begun construction on our newest public hospital at the University of Canberra.
In managing the economy, we are also investing in infrastructure to support long term growth and prosperity. The 2015-16 Infrastructure Plan Update, which was also issued today, highlights the ACT Government’s four-year plan to invest a record $2.8 billion in infrastructure projects around the capital.
By investing in major infrastructure projects such as the Majura Parkway, the new public hospital, new schools and the light rail network, the Government is creating more jobs for Canberrans and improving the Territory’s productivity. These projects attract investment from outside the Territory and diversify our economy, reducing our reliance on jobs and activity created by the Commonwealth Public Service.
The Government’s investment has already improved the strength of our economy, with the Territory avoiding a recession and withstanding the loss of thousands of jobs in the Australian Public Service.
The Government’s Asbestos Eradication Scheme continues working towards ridding the ACT of the Mr Fluffy legacy once and for all. As of 14 December 2015, the Taskforce had worked with homeowners to secure the purchase of 964 properties as part of the Voluntary Buyback Scheme and 54 properties have now been demolished. The Scheme continues to pose a significant cost to the Territory’s budget. However, the worst is now behind us and the financial impact of the Scheme will reduce as affected blocks are remediated and sold.
The financial position of the 2015 16 Budget Review remains broadly consistent with that of the 2015 16 Budget. Excluding the impacts from the Asbestos Eradication Scheme, the revised Headline Net Operating Balance is estimated to be a deficit of $396.2 million in 2015-16. This result is driven almost entirely by a revised 2014 15 superannuation liability valuation. The revision, which is the result of the current low level of interest rates, is an accounting technicality and has no impact on the ACT’s cash position.
As we move into planning for the 2016-17 ACT Budget, Canberrans can be assured we will continue vital funding for health and education services. We will continue reducing stamp duty on Canberra properties and we will be announcing the next five year plan for tax reform in the ACT – building a fairer and more sustainable revenue base for the Territory’s future.
To access the Budget Review and the Infrastructure Plan Update, visit http://apps.treasury.act.gov.au/publications
- Statement ends -
Section: Andrew Barr, MLA | Media Releases
