ACT Government Cuts Proposed Health Levy After Greens Negotiation

The ACT government has reduced its proposed health levy from $250 to $100 for residential ratepayers following a deal with the Greens.

The levy was announced in last week’s ACT budget and was set to be included on rates notices annually until 2029-30, generating an estimated $205 million over four years to support health services. However, the ACT Greens opposed the measure, calling it an “unfair and regressive tax.”

After several days of negotiations, the levy has been lowered to $100 for residential and rural property owners but remains at $250 for commercial properties.

Treasurer Chris Steel stated that the agreement resulted from “constructive discussions” with the Greens regarding revenue measures in the 2025-26 budget. He emphasized that the levy would help fund record investments in Canberra’s public health system, which now accounts for more than 33 percent of the ACT budget. The revised levy will be in place for only one year and will be reviewed annually.

To compensate for the lower levy, Steel announced the government will introduce a higher payroll tax rate of 8.75 percent for large businesses with nationwide payrolls exceeding $150 million. This new rate is expected to start from January 1.

Steel concluded by saying, “This outcome reflects the government’s commitment to working collaboratively to ensure vital services are funded responsibly, without the need for deep cuts to public services or infrastructure investment.”