Strong economic foundation: Gross State Product growth of 3.25 per cent with employment targeting 300,000 jobs by 2030 and lowest national unemployment rate
Revenue increases: Commercial property owners face Health Levy ($250 annually for four years) plus 3.75 per cent rates increases, with new thresholds for properties over $1 million
Housing integration: 30,000 homes by 2030 strategy ($145 million) targets mixed-use development around town centres and transport corridors
Build-to-Rent support: $100 million Affordable Housing Project Fund with land tax exemptions and 300 additional homes creating commercial investment opportunities
Health employment nodes: Record $1.196 billion investment including new community health centres in North Gungahlin and Inner South generates distributed commercial demand
Infrastructure reshaping: $8.1 billion program including light rail, Northside Hospital and convention precinct creates multiple commercial development anchors
Payroll tax changes: Threshold reduces to $1.75 million with rate dropping to 6.75 per cent from 2026-27, affecting business owners with substantial employees.
The ACT Government's 2025-26 Budget establishes policy settings that reshape commercial property market opportunities through strategic infrastructure investment, housing supply initiatives, and revenue measures that directly impact property ownership costs. The Territory's economic performance provides a strong foundation, with Gross State Product forecast to grow by 3.25 per cent in 2025-26 and employment targeting 300,000 jobs by 2030 while maintaining the lowest unemployment rate nationally.
The budget introduces significant revenue measures that substantially increase costs for commercial property owners while funding essential infrastructure and health services. Commercial property owners face a double impact through the new temporary four-year Health Levy of $250 annually on all properties and general rates increases of 3.75 per cent, both collected through rates bills. For high-value commercial properties, the budget introduces new land value thresholds for properties exceeding $1 million Average Unimproved Value, creating additional rating tier impacts. These measures represent a deliberate policy shift requiring commercial property to contribute more substantially to health system funding and infrastructure costs, with the Health Levy alone generating significant annual revenue from the commercial property sector over the four-year period.
The government's housing strategy creates integrated development opportunities that reshape commercial property potential through mixed-use projects. The commitment to enabling 30,000 new homes by 2030, supported by $145 million in direct investment, incorporates missing-middle housing reforms and planning changes that target development around town centres, local shops and public transport corridors. Planning reform investments will provide opportunities for new housing and community facilities in well-located areas, with the government working to streamline planning and building processes and reduce regulatory barriers to ensure development can proceed more efficiently, potentially benefiting commercial projects that incorporate residential components.
Build-to-Rent development receives targeted support through multiple policy mechanisms that create commercial property investment opportunities. The budget allocates an additional $20 million to the Affordable Housing Project Fund, bringing total funding to $100 million, with specific support for Build-to-Rent projects incorporating affordable rental housing. The expansion of the Affordable Community Housing Land Tax Exemption Scheme provides ongoing operational cost benefits, while the commitment to 300 additional Build-to-Rent homes demonstrates government confidence in this commercial property model as both a housing supply mechanism and investment opportunity.
The budget's record $1.196 billion health investment creates significant new commercial property opportunities through distributed employment generation. The expansion of health services closer to home, including new community health centres in North Gungahlin and Inner South, represents substantial employment nodes that will require supporting commercial services. The health sector's continued expansion, including 70,000 additional elective surgeries over four years, suggests sustained demand for commercial services in health precinct locations across the Territory.
Infrastructure investment through the $8.1 billion program will reshape commercial property value creation across multiple locations. Major projects including light rail continuation, the new Northside Hospital, and planning for a new convention and entertainment precinct create anchors for commercial development. The government's approach of matching infrastructure delivery to market capacity while exploring different delivery models suggests pragmatic project management that considers private sector participation opportunities.
The budget's payroll tax changes, reducing the threshold to $1.75 million while lowering the rate to 6.75 per cent from 2026-27, showing measured changes to business taxation. For commercial property owners with substantial employment, this change may affect operational costs, though businesses with payroll under $4 million will continue to pay less than in surrounding New South Wales, maintaining competitive advantage for Territory-based operations.
Market conditions acknowledge current challenges to justify new development when combined with construction costs and financing expenses. However, the substantial infrastructure pipeline, planning reform agenda, and targeted support for mixed-use development create medium-term opportunities for commercial property projects that align with government policy settings. The budget provides policy framework and infrastructure investment to support market evolution while maintaining economic fundamentals that underpin commercial property demand across diverse sectors and locations throughout the Territory.
