State of the ACT’s economy

The ACT has again ranked seventh out of eight states and territories in stockbroking firm CommSec’s latest State of the States economic performance report for the April quarter.

Despite strong economic growth, the ACT is being held back by slow population growth and retail spending, while federal election uncertainties and proposed public service cuts could further threaten the economy, the report warns.

An ACT Government spokesperson said: “This ranking does not fully reflect the strong fundamentals of our economy. We continue to lead the nation in key indicators such as economic growth and job creation and employment. The government is actively investing in housing, infrastructure, healthcare, education, and skills to build a stronger, more inclusive economy and ensure that growth benefits all Canberrans.”

The ACT had the second-highest economic growth (output 7.4 per cent above the long-term average and annual growth of 3.7 per cent) and wages growth (3.7 per cent) nationally, and the third-fastest increase in employment (2.5 per cent over the past year).

“The ACT’s strong performance in economic growth and jobs demonstrates the resilience of our economy,” a government spokesperson said. “We are focused on maintaining this momentum by supporting innovation, diversifying the economy into sectors like renewable energy, cybersecurity, and space technology, and maintaining strong investment in infrastructure. We are also committed to providing certainty and stability for businesses during periods of national and global uncertainty.”

However, retail spending was the worst in the country (a fall of 0.9 per cent). Construction suffered the nation’s steepest decline (11.5 per cent; construction work is now 7.9 per cent below the decade average). Dwelling starts were the worst in the country (plunging 54.2 per cent over the year, and sitting 56.4 per cent below the decade trend).

“The construction industry is facing nationwide pressures, including labour shortages and higher material costs together with higher project financing costs, and weaker demand due to higher interest rates,” a government spokesperson said. “The prospect of the Liberals’ large scale cuts to the Public Service may also be weighing on housing demand in the ACT.”

The government is increasing housing supply through planning reforms, land releases, public housing development, and partnerships with the community housing sector, the spokesperson said. Its Housing Strategy aims to meet growing demand, keep housing affordable, and avoid shortages, with a target of 30,000 new homes by 2030 as the population nears 500,000. Reforms support medium-density and transport-oriented housing, while a new productivity agenda aims to improve construction efficiency. The government is also investing in major infrastructure projects and working with industry to boost private sector investment and protect local jobs.

New vehicle sales were the worst result nationally (an 8 per cent slump compared to historical averages).

“The fall in new vehicle sales reflects broader cost-of-living pressures impacting discretionary spending,” the spokesperson said. “While it may have some impact on stamp duty and registration revenue, our budget settings are designed to be resilient. We continue to monitor economic trends closely to manage risks and ensure the Territory’s strong fiscal position is maintained.”

Shadow Treasurer Ed Cocks MLA (Canberra Liberals) blamed the Labor government’s “economic mismanagement”, and said the economy was going backwards and the cost of living rising.

“The ACT ranks dead last in the nation for overall economic momentum; that means that key sectors of Canberra’s economy have been stagnating or going backwards,” Mr Cocks said. “Our economy should be performing far better than the picture this report paints.”

However, the report warns that the Coalition’s potential public service cut is a risk to the ACT economy.

“No contingency measures by the ACT Government could blunt the full economic impact of the Liberals’ proposed cuts to the Australian Public Service,” a spokesperson said. “Potential federal public service cuts pose a serious threat to the ACT economy. Any economy that suffered the loss of 15 per cent of its total employment would fall into a prolonged recession. The magnitude of job cuts Mr Dutton and the Liberals are proposing for Canberra would equate to 450,000 of the 3 million jobs in his home state of Queensland. It is calculated and vicious attack on Canberra to propose our city bear the entire burden of Mr Dutton’s extreme public service cuts. It is straight from the Trump/Musk DOGE playbook. We are advocating strongly to protect Canberra’s public service jobs and the businesses that rely on them.”

Funding sought for domestic violence services

Despite increased investments and a national commitment to end gender-based violence within a generation, frontline family and domestic violence services in the ACT warn they still face an imminent funding cliff.

Both the Domestic Violence Crisis Service and the Canberra Rape Crisis Centre report rising demand. Two years ago, DVCS handled 850 requests each month; now it receives 1,100 requests while operating at a $1 million deficit. The CRC’s funding expires in June 2026; its funding is insufficient to serve its 8,000 clients, providing crisis calls, texts and callouts to police and hospitals and specialised counselling sessions.

DVCS CEO Sue Webeck said services would need to be cut unless governments funded the true cost of 24-hour responses. CRC CEO Tiffany Karlsson said Canberra was facing a “silent sexual violence crisis”. One in five women, one in three girls and one in five boys in the ACT have been sexually assaulted, and demand for specialist frontline services is growing.

Independent Senator David Pocock called on the ACT and Federal Governments to fund services for five-year terms; expand public housing; improve access to support programs like the Leaving Violence program; and raise welfare payments above the poverty line to help victim-survivors escape violent relationships.

Senator Pocock will attend aVote4Her rally at ANU’s Kambri lawns on Wednesday 30 April to call for greater action.

The ACT Government said it recognised the increasing demand on domestic, family and sexual violence services, and was working with frontline services to assess funding needs ahead of the June Budget.

The government’s Safer Families Assistance Program provides $2,000 for victim-survivors to find safe housing, alongside assistance from Victim Support ACT and community partners.

The government is developing a 10-year strategy to prevent and respond to domestic, family, and sexual violence.

P&C calls for reform of complaints process

The ACT Council of Parents and Citizens Associations has called for a reform of the public education system’s complaints process.

Council Executive Officer Veronica Elliott said the system is failing families: 94 per cent of parent and carer contacts with the Education Directorate’s Feedback and Complaints team were not acknowledged as formal complaints, according to the Directorate’s Annual Report.

“Are [parents and carers’] concerns not genuine simply because they don’t fit into a narrow definition?” Ms Elliott said. “Dismissing families’ concerns at this scale is not just outrageous, it’s deeply insulting.”

The Council has called for an independent review of how the Education Directorate categorises, records, and resolves complaints, and for investment in family supports, including a trial of an independent parent advocacy service.

Ms Elliott said families raised concerns out of care about their children’s education and wellbeing, not to cause conflict. Mishandling or minimising complaints, she said, destroyed trust and squandered opportunities for improvement, particularly for families of students with disabilities.

“Complaints are not a burden to be minimised,” Ms Elliott said. “They are a chance to do better for every student. It’s time the system treated them that way.”

Education minister Yvette Berry MLA has met the Council and will work with it to strengthen complaint processes and resolve issues quickly and effectively, a government spokesperson said. The ACT Education Directorate has worked to improve the management of complaints over several years. The current policy and procedures were published in 2023, informed by stakeholder feedback.

“We know responding to the changing needs of families requires continuous improvement. We want our approach to complaints to be student centred, and to support students, parents and carers, schools, and the community to maintain positive relationships and active engagement in education. We know children and families are better off when issues or concerns are addressed early, before they escalate to the level of a complaint. This is an area the Directorate is working to improve.”