The ACT Council of Social Service (ACTCOSS) has called on the ACT Government to prioritise investment in social infrastructure in the 2026–27 Budget, warning that short-term cutting will “deepen disadvantage” and increase long-term pressure on health, housing, and crisis services.
ACTCOSS today released its full State of the Sector report and Budget priorities, which make 19 recommendations across five priority areas: alleviating poverty and cost-of-living; social housing and homelessness; community sector funding; Aboriginal and Torres Strait Islander self-determination; and budget transparency and accountability.
ACTCOSS CEO Dr Devin Bowles said that although the government was under financial pressure, reducing investment in community services would ultimately cost more.
“There is no point in cost-cutting today that will only deepen disadvantage and drive-up future spending on acute health care, emergency accommodation, and crisis supports tomorrow,” Dr Bowles said.
“Both Canberrans and the budget would thrive if there was more systematic investment in the sort of preventative services that help people stay on their feet, like those delivered in the community sector.”
“People are the key to the ACT’s economy, and people cannot contribute as much to the economy when they are in crisis. Conversely, government investments that enable people to meet their full potential add value to the economy across the lifespan.”
The report paints a picture of growing stress across the ACT: although Canberra has a high average standard of living, poverty and demand for community services are both rising.
“Community services are the backbone of Canberra’s social infrastructure,” Dr Bowles said. “We support almost every Canberran at some point … yet increasingly we find ourselves stretched by rising demand and growing complexity that make it harder than ever to meet the needs of the Territory.
“These challenges affect real people. When services can’t keep up, waiting lists grow, people are turned away, and urgent needs go unmet.”
ACTCOSS is calling for action on cost-of-living, including a review of concessions and government assistance programs. The organisation says the ACT Targeted Assistance Strategy, unchanged since 2012, no longer reflects current economic pressures or is adequate for families facing sudden hardship.
“The last five years have seen dramatic increases in the costs of housing, food, utilities and petrol, far outpacing wages and government support,” Dr Bowles said. “Urgent reform is needed: more than 36 per cent of Canberrans reported difficulty affording food this year.”
The submission also urges clearer targets and renewed funding for social housing; more funding, infrastructure, and fairer indexation for the community sector; longer-term contracts for Aboriginal Community Controlled Organisations (ACCOs), more funding for the Elected Body, and the establishment of an Aboriginal and Torres Strait Islander-led justice body; contract certainty for the homelessness sector; and greater transparency and accountability in the budget process, including clearer reporting on spending for the community sector and ACCOs, and improvements to the YourSay website so community voices can inform the budget effectively.
“Our recommendations aim to deliver sustainable, fiscally responsible reforms that invest in preventing disadvantage and inequity in the ACT for the long term,” Dr Bowles said.
Independent MLA Thomas Emerson said the report confirmed what many Canberrans were already experiencing.
“We can all see the growing gap between the ‘haves’ and the ‘have nots’ in the ACT,” Mr Emerson said. “The complexity of need in our community is increasing, and government investment isn’t keeping up.
“Each budget is a statement of values. Consistent underinvestment in the community sector has left vulnerable Canberrans, and the people who support them, asking what this government really values.
“If the ACT Government wants to live up to its own progressive rhetoric, it needs to invest in services that support our most vulnerable community members before they reach crisis point.
“It costs a lot more cumulatively to treat symptoms of disadvantage rather than tackling the root causes. Our community wants to see more upstream investment in preventative services to keep Canberra from becoming a two-tiered society.”
Independent MLA Fiona Carrick also backed ACTCOSS’ call, describing community services as essential to Canberra’s social fabric.
“The services our community sector provide are an essential part of what makes Canberra a caring and inclusive city,” Ms Carrick said. “We need to properly fund our community services so they have the capacity to respond to the sustained high living costs and other stresses that the community is facing.
“It’s also good financial management to ensure people are able to access the support they need, when they need it, keeping people out of crisis situations, and reducing demand for more expensive crisis services and hospital emergency departments.”
The Canberra Liberals criticised the ACT Labor Government’s record.
Peter Cain MLA, Shadow Minister for Community Services, said: “This report lays bare years of mismanagement by the ACT Labor Government. As demand for community services rises, Canberrans are paying more and getting less, with chronic underinvestment placing mounting pressure on housing, health and crisis systems, and on household budgets.”
ACTCOSS said its recommendations were fiscally responsible and focused on preventing disadvantage before it escalates.
“It can be difficult for governments to make wise investments to prevent people reaching crisis because of lack of visible opportunities and evidence of likely return on investment,” Dr Bowles said. “ACTCOSS’s State of the Sector report and budget submission provide the ACT Government with actionable solutions.”
“Austerity is not the answer. The ACT Government needs to invest in upstream measures that deliver social infrastructure to support a thriving Canberra in the long-term.”
