ACT Budget 2020/21 - Counsel House

ACT Budget 2020/21

ACT Chief Minister and Treasurer Andrew Barr brought down the first of two 2021
Budget/economic statements today (9 February 2021). It follows a detailed economic statement
made in August last year and is a precursor to another economic statement in August 2021.

The headline figures, announced in August 2020, have been updated, taking into account the
known effects of the COVID pandemic that progressively washed through the economy in 2020.
Chief Minister Barr released a full set of financial statements that were originally due in June 2020
but postponed due to the pandemic and the Federal Government’s decision last year to delay its
20/21 Budget from May until October 2020.

Chief Minister Barr’s Budget included funding announcements to fulfil commitments made in the
Territory’s October 2020 election. They included approximately $300 million for climate change-
mitigating policies, design planning for stage 2 of the light rail and boosts to infrastructure, health
and education spending.

Chief Minister Barr outlined current debt and deficit figures and modest spending on economic
recovery and job-creation programs. The ACT economy has emerged relatively unscathed from the
COVID-19 pandemic with unemployment the lowest in the country.

Budget Overview
The 2020-21 Budget includes improved financial forecasts compared to the Economic and Fiscal
Update published in August 2020.

The ACT’s budget deficit is $603 million, $432.5 million higher than 2019-20 forecasts, while net
debt will be $4.665 billion, $884.5 million higher than 2019-2020 forecasts. The ACT’s
unemployment rate of 3.7% is the lowest in Australia, while the workforce participation rate is the
country’s second-highest, at 72.2%. International travel restrictions are predicted to slow the
ACT’s population growth to fewer than 3,000 people per year over the next four years.

Forecasting assumptions:
   • COVID-19 vaccines are rolled out from February 2021, reaching population-wide coverage
      across Australia by the end of 2021, and they are effective in minimising the health impacts
      of COVID-19;
   • there are no additional large-scale outbreaks of COVID-19 in Australia or the ACT over the
      forecast period, and localised outbreaks are quickly contained;
   • restrictions in the ACT will be lifted progressively, with the next easing of restrictions
      considered in February 2021;

•   state and territory borders remain largely open;
   •   international border restrictions will be progressively lifted from July 2021. However,
       borders will not be fully open until 2022;
   •   the ACT and national economies continue to respond well to fiscal and monetary policy
       stimulus measures. There is a smooth transition from public support to private sector-led
       growth as stimulus measures are withdrawn over the course of 2021; and
   •   net overseas migration flows are consistent with current estimates.

Tax
   •   $825,000 to develop and implement the concessional loads framework, including the
       Sustainable House Hold Scheme
   •   $10 million in payroll tax deferral for universities
   •   $2.6 million to extend rent relief
   •   $1.2 million to extend residential tenancy relief until 30 June 2021. 50% land tax and rates
       rebate will continue to be provided
   •   $250,000 to implement the recommendations of the Independent Competition and
       Regulatory Commission to make it easier for ACT consumers to get better electricity deals
   •   Extension of the COVID-19 payroll tax exemption for wages paid to new apprentices or
       trainees employed after 1 August 2020
   •   Extension of interest-free deferrals of payroll tax for employers in hardship until 20 June
       2021
   •   Extension of payroll tax-waivers/exemptions for businesses unable to trade or only operate
       on a very limited basis.

Education
   • $1.9 million to support Skills Canberra to deliver a new national partnership agreement on
      JobTrainer, Infection Control training and the Australian Apprenticeships and Skilled Capital
      Programs
   • $2.9 million to increase the number of weeks offered to priority families accessing early
      childhood learning from 40 to 48 weeks
   • $28.6 million to provide additional funding to meet the full construction cost of the new
      high school in East Gungahlin
   • $2 million to commence works in preparation for a new high school in Taylor
   • $1 million to expand the Margaret Hendry School to accommodate for growth
   • $888,000 to provide funding for ten Master of Education scholarship every year for the next
      five years

Community Services
  • $750,000 to extend the ACT hardship Fund program to 30 June 2021
  • $2.2 million for a 15-month waiver for food business registration and outdoor dining fees,
    as well as reduced liquor licensing fees by 50%
  • $100,000 to fund the extension of the Refugee, Asylum Seeker and Humanitarian program
  • $1.4 million to establish the Technology Upgrade Fund

Infrastructure
   • $2.6 billion over four years to allocated capital works, including
          o New projects announced in 2020-21 budget year, including those announced in
             August 2020
          o Works-in-progress on work commissioned in previous years
          o Investments in existing infrastructure

•   $57.6 million for the Better Infrastructure Fund
   •   $347 million over four years for Health Infrastructure
          o Expand, upgrade and refurbish Canberra Hospital
          o Expand the Centenary Hospital for Women and Children
          o Fund a COVID-19 and disease response management system
          o Fund pop-up COVID-19 emergency clinics
          o Fund storage and ICT facilities to support the COVID-vaccine program
          o Fund a pilot Walk-in health in Coomb
          o Imaging service as the Weston Creek Walk-in
   •   $615 million over four years for Education Infrastructure
          o Development of a new East Gungahlin high school
          o Development of a new North Gungahlin high school
          o Delivering a new primary school in Thorsby
          o Building a new school campus in Molonglo
          o Expanding Margaret Hendry Primary School
          o Expanding Campbell Primary School
          o Improving school ICT systems
          o Expanding Franklin Early Childhood School
          o Installing energy-efficient heating upgrades
   •   $558 million over four years for Transport Infrastructure
          o Progressing Light Rail State 2
          o Upgrading Monaro highway
          o Duplicating Athllon Drive and William Hovell Drive
          o Constructing the last portion of the John Gorton Drive
   •   $105 million over four years for Public Housing
          o $52 million to continue public housing growth and renewal
          o $11.6 million to commence the construction of a second Common Ground in
               Dickson
          o $11.4 million over the five years for general property and energy efficiency
               upgrades
   •   $10 million to continue the Fast-Track Program which will support investment in minor
       capital works projects
   •   $3 million to undertake works to replace cladding on ACT Government-owned buildings
   •   $1.3 million to undertake a feasibility study to assess the viability of extending light rail to
       Mawson
   •   $631,000 to support early design and planning work for the raising of London Circuit
   •   $1.6 million to increase Community Service Obligation funding to the Public Trustee and
       Guardian

Access Canberra and government services
   • Infrastructure Investment Program amounts to $914 million in 2020-21 and $4.3 billion
      over the four years to 2023-24
   • $2.3 million to establish a Better Regulation Taskforce to review the current business
      environment of the ACT
   • $2 million to deliver a second sound of the Choose CBR digital voucher program
   • 1.2 million to establish the Office of the Co-ordinator General for Climate Action
   • $7.6 million for the appointment of an additional Minister for the 10th Legislative Assembly
      and associated staff (to be offset by $2.352 million from the Office of the Legislative
      Assembly)

•   $681,000 to establish the Office of the Co-ordinator General for the Whole of Government
       (non-Health) Response to COVID-19

Jobs
   •   $1 million to extend short-term contracts for critical positions currently supported through
       the Jobs for Canberrans Fund
   •   $16.7 million to implement the Job Trained Fund, as part of the Federal Governments $1
       billion national initiative
   •   $9.2 million over two years to establish the Future Jobs Fund
   •   $236,000 for the Labour Hire Commissioner to establish and implement a licensing scheme
       to regulate the labour-hire industry
   •   $145,000 to establish a task force to conduct a feasibility study to insource work currently
       sources to external parties

Justice
   • $5.6 million to increase the contingency for the Alexander Maconochie Centre Reintegration
       Centre project
   • $1.7 million to establish a Community Clubs Ministerial Advisory Council
   • $529,000 to provide additional staff to administer the Victims of Crime Financial Assistance
       Scheme
   • The ACT Government will extend the gaming machine authorisation surrender until June
       2021, and use the remaining funding available from the original $3.75 million
   • $310,000 to provide additional capacity at the Magistrates Court
   • The ACT Government will relocate ACT Policing’s Traffic Operations Centre to a designated
       facility – cost subject to commercial negotiation

Environment, sustainable development and climate change
   • $100 million over the next five years for the Big Canberra battery
   • $50 million for the Vulnerable Household Energy Support scheme
   • $5.25 million to extend the Constriction and Jobs Growth Lease Variation Charge Remission
      as a lower rate
   • $626,000 to manage invasive species in the ACT
   • $1.5 million to build on Healthy Waterways Project
   • $3.8 million to establish the Building Energy Efficiency Upgrade Fund
   • $199,000 to protect native species as part of the Matters of National Environmental
      Significance within the West Belconnen Strategic Assessment and Gundhahlin Strategic
      Assessment sites
   • $175,000 to plan to support the new urban renewal site at Lathlain Street Precinct
      Belconnen
   • $2.4 million to provide ongoing employment for six Ngunnawal Ranger positions
   • $855,000 to support the development of long-term plans to phase out gas use in the ACT
   • $1.1 million to replace the ACT Parks and Conservation Service vehicle and depot radios
   • $1.1 million to upgrade the Heritage Register database and website
   • $37 million to provide funding to undertake policy design work for a $50 million fund to
      improve building efficiency and sustainability for social and public housing
   • $5.1 million to increase the number of zero-emission vehicles in the ACT by waiving
      registration fees
   • $2.6 million to deliver on the commitment to expand the number of zero-emission vehicles
      by installing 50 accessible charging stations

Health
  • $26 million to fund the COVID health response through the next 12 months
  • $20.4 million to deliver on the ACT vaccine program
  • $1.3 million to lead the modernisation of the Birth of a Child policy, which will make
      newborn enrolment and registration easier
  • $2.4 million over four years to support the ACT Reportable Conduct Scheme to better meet
      existing demand
  • $3.1 million to continue to fund the Adolescent Mobile Outreach Service
  • $6.5 million to additionally fund non-elective surgery and acute medical surgery at the
      Calvary Public Hospital
  • $2.3 million to extend the delivery of the Mental Health Support Package until 30 June
      2021
  • $5.9 million to establish outpatient imaging at Weston Creek Walk-in Centre
  • $145,000 to establish a task force to conduct a feasibility study to insource work
  • $300,000 to provide funding to Palliative Care ACT
  • $16.6 million over four years to continue the electrical upgrade work at Canberra Hospital
  • $582,000 to establish a new walk-in health centre in Coombs
  • $2 million to undertake a feasibility study into the establishment of four new walk-in
      centres across Canberra

Emergency services and policing
  • $2.6 million to upgrade the existing Security Information and Event Management System
  • $105,000 to extend the funding of the Canberra Rape Crisis Centre and Domestic Violence
     Crisis Service
  • $159,000 to continue the Health Justice Partnership Program
  • $1.9 million to expand the Police, Ambulance and Clinical Early Response service

Transport
   • $60,000 to enhance traffic management in the ACT
   • $13 million to accelerate the roll-out of the bulky waste collection service
   • $10 million to introduce mobile device detection cameras
   • $174 million to progress the design and construction of the John Gorton Drive 3c
   • Continue to progress design and construction work to upgrade further sections of the
      Monaro Highway
   • $5 million over the next three years to undertake a feasibility study and develop
      preliminary sketch plans for operations to improve capacity and safety along Parkes Way
   • $8.8 million to fund improvements in road and cycling infrastructure, playground and
      recreational infrastructure as well
   • $24 million over four years to conduct a feasibility study on road upgrades to improve
      public transport, active travel, freight and safety along the South-Western Corridor
   • $990,000 to improve road safety through the Targeted Road Safety Works program
   • $666,000 to improve the north-south arterial road between Barton and Ginninderra

Tourism, sport, events and the arts
   • $22 million to support the delivery of services to the community, including;
         o Supporting Events ACT
         o Providing Transport Canberra and the City Services Directorate and Transport
            Canberra Operations additional support to reduce fares
         o Provide support for Government service centre shopfronts to provide a safe
            environment for the community

o Support Venues Canberra amid limited venue caps
           o Offsetting the lost revenue for the Canberra and Region Visitors Centre
   •   $500,000 to complete planning and design work for a new district tennis centre in
       Gungahlin
   •   $3.5 million to begin a campaign marketing Canberra as a COVID-safe travel destination
   •   $400,000 to provide planning and design work for a permanent home for Dragon Boating
       in the ACT
   •   Repair of the Gungahlin Leisure Centre – cost subject to commercial negotiation
   •   Support for public pool operators – costing subject to negotiation
   •   $330,000 to provide a full rebate on non-portable water to high-intensity sports club users
   •   $52,000 to extend the Canberra Relief Network, a community services organisation
   •   $1 million to support the Cultural Facilities Corporation

First Nations Policy
    • $425,000 to support new accommodation for the Gugan Gulwan Youth Aboriginal
       Corporation
    • $317,000 to the Office for Aboriginal and Torres Strait Islander Affairs to develop a
       governance structure for the Healing and Reconciliation Fund
    • $4.86 million over four years to implement the recommendations of the Our Booris, Our
       Way review

Housing
  • $102 million for the Sustainable Household Scheme
  • increase the cap on the number of properties that can access assistance under the
      Affordable Community Housing Land Tax Exemption from
      125 to 250 properties
  • $1.4 million to extend rate relief to commercial landlords who negotiate in good faith to
      reduce rent
  • $1.5 million to establish and identify positions for Aboriginal and Torres Strait Islander staff
      within Housing ACT
  • $300,000 to expand the Early Morning Centre to 7 days a week
  • $1.2 million to fund three homelessness services that have been operating during COVID-
      19
  • $700,000 to provide funding for systemic advocacy through ACT Shelter
  • $450,000 to provide additional funding to OneLink to increase its capacity