ACT Government Cuts Health Levy to $100 in Budget Deal with Greens
The ACT government has reduced its proposed health levy from $250 to $100 for residential ratepayers after reaching a compromise with the ACT Greens.
The levy, initially introduced in last week’s ACT budget, was designed to appear annually on rates notices until 2029–30, with the goal of raising an extra $205 million over four years to support health services.
However, the Greens opposed the plan, describing it as a “regressive and unfair tax.”
Following several days of negotiations, the levy has now been revised to $100 for residential and rural property owners, while the $250 charge remains in place for commercial properties.
ACT Treasurer Chris Steel said the outcome was the result of productive discussions with the Greens on the 2025–26 budget’s revenue measures.
“The levy will raise the essential revenue needed to fund record investments in Canberra’s public health system, which now accounts for more than 33% of the ACT budget,” he said.
The new levy structure has been agreed to for just one year and will be reviewed annually.
To compensate for the reduced revenue, Mr Steel announced a new payroll tax rate of 8.75% for large businesses with national payrolls exceeding $150 million, set to begin on January 1.
“This outcome reflects the government’s commitment to collaborative decision-making to responsibly fund essential services—without resorting to significant cuts in public services or infrastructure investment,” Steel said.
Greens Call Outcome a ‘Great Win for Canberra’
ACT Greens leader Shane Rattenbury reiterated his party’s strong opposition to the original proposal.
“We recognise the importance of raising revenue to fund critical services,” Rattenbury said. “But we could not support placing that burden on everyday Canberrans in such a flat and inequitable way.”
He acknowledged the urgency of reaching a deal due to the rates determination deadline of June 30, which required swift action.
“There was significant pressure to finalise a decision today so the government could meet legislative timelines,” he said. “But we’re pleased we were able to secure a fairer outcome that benefits the Canberra community.”
