Update – 30 June
After failing to secure support for the “Health Levy” from either the Greens or Liberals in the Legislative Assembly, the ACT Government announced the below changes to taxes and duties as previously announced in the 24 June Budget:
Health Levy
The Health Levy has been reduced from $250 per annum to $100 per annum for residential and rural properties. The original $250 charge remains for commercial properties.
Payroll Tax
A new rate of 8.75% will apply for businesses with payrolls exceeding $150million. This change is expected to apply from 1 January 2026.
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Original Article
ACT Treasurer Chris Steel handed down the 2025-26 ACT Budget on 24 June. The headline figure is a $1.1billion deficit, with a predicted return to surplus in 2027-28. Net debt is currently estimated at $9.2billion, budgeted to increase year-on-year to $13.6billion in 2028-29 (approximately $30,000 per ACT resident).
A suite of tax and rates changes were announced, including:
Payroll Tax
From 1 July 2026 the payroll tax threshold will be reduced from $2m to $1.75m.
The rates will also change from the current general rate 6.85% to:
| Total annual wages | Payroll tax rate |
| Less than $20m | 6.75% |
| Between $20m and $50m | 6.85% |
| Between $50m and $100m | 7.25% |
| More than $100m | 7.75% |
As an example, a business claiming the full ACT threshold, with a wages cost of $3m, will see their payroll tax bill rise by $15,875, from $68,500 to $84,375.
Rates
Every property in the ACT, residential, commercial, and rural, will now incur a “Health Levy” of $250 per annum until 2029-30, as part of the rates bill. The existing Safer Families Levy will increase from $10 to $60, as will the Police, Fire, Emergency Services Levy, from $396 to $426 for residential properties.
Commercial rates will increase, along with a new rate of 5.9670% being imposed on commercial properties with an average unimproved land value of greater than $5m.
Similarly, residential rates also increase by an average of 3.75% (although some will increase by 18%), with a new rate of 0.5743% being imposed on residential properties with an average unimproved land value of greater than $1m.
Motor Vehicle and Other Duties
From 1 September 2025, new purchases of zero emission vehicles will be subject to a minimum 2.5% tax. This increases proportionally based on emissions and value. Cars that cost greater than $80,000 will be subject to a new rate of tax at 8%.
A variety of other less common fees or levies, including those for commercial and industrial waste services have also increased.
Housing
The stamp duty concessions for eligible home buyers will increase by $20,000 to $1,020,000.
Should your business require any assistance navigating these changes please reach out to your Hardwickes’ contact, or give us a call at 02 6282 5999.
