S&P Global Ratings has downgraded the ACT’s credit rating from AA+ to AA, due to high debt levels, persistent budget deficits, rising health costs, and large infrastructure projects.
The agency expects the ACT to post five consecutive operating deficits (2022–2026) before returning to a slim surplus in 2027.
Increased capital spending (including for new projects) is projected to push deficits above 10 per cent of revenue in the next two years and drive debt to nearly 200 per cent of operating revenue — higher than any Australian state except Victoria.
The ACT’s credit rating was downgraded from AAA to AA+ in 2023, and S&P Global Ratings last year revised the outlook on the ACT’s credit rating from stable to negative.
Treasurer Chris Steel MLA said that the S&P rating was only one market factor affecting borrowing. He said the ACT Government had made S&P aware of its tough decisions to put the budget on a more sustainable footing while managing increased activity in the healthcare system, and that the agency acknowledged the ACT’s strong financial management and economy. The government will return to cash operating surpluses. He also pointed to $1.19 billion in additional hospital funding, partly offset by a new health levy and payroll tax changes, and said that all states were experiencing similar health-driven budget pressures.
“We’ve taken real, concrete actions around savings in the budget and also through revenue measures to make sure that we are on a sustainable path,” Mr Steel said.
Shadow Treasurer Ed Cocks MLA (Canberra Liberals) blamed the downgrade on more than a decade of budget blowouts and fiscal discipline. He said Canberrans would pay more through higher borrowing costs: 26 per cent of tax revenue already went to interest instead of services. He called for strict fiscal discipline and a clear path back to budget balance.
“Labor continues to rely on borrowings and emergency tools like the treasurer’s advance because it can’t pay for its promises. The result is higher debt, higher interest and short-changed services. This is not bad luck. It is the direct and predictable consequence of Labor’s choices.”
Independent MLA Fiona Carrick called the downgrade “a red flag” showing the ACT’s deteriorating finances and the cost for residents. She pointed to debt nearly doubling from $500 million in 2024–25 to almost $1 billion by 2028–29, a 92 per cent increase, and challenged the government narrative of borrowing as an investment in generational infrastructure. “The cost of debt doesn’t wait for the next generation… We’re adding to it. And we’re doing it while cutting services and increasing taxes. That’s not responsible. That’s not sustainable.”
The Canberra Business Chamber expressed concern that the government might hike taxes, putting further pressure on businesses and households, limiting economic growth, CEO Greg Harford said. He suggested the government adopt business-style budgeting: efficiency measures, cost cuts, deferring non-essential spending. The Chamber supported some capital investment — such as the new Convention Centre, which would offer clear long-term economic benefits – but called for a review of service delivery efficiencies.
Transformer for Big Canberra Battery
The Big Canberra Battery transformer was delivered to the Williamsdale Battery Energy Storage System (BESS) site last week.
The Williamsdale BESS is a large-scale 250 megawatts battery, expected to store enough renewable energy to power one-third of Canberra for two hours during peak demand. Construction began in July, and it is expected to be operational next year.
Chief Minister Andrew Barr MLA promised it would keep the lights on, reduce reliance on fossil fuels, and support the ACT’s transition to net-zero emissions by 2045.
The transformer converts electricity stored in the battery to the correct voltage so it can be safely supplied to the grid. This will allow renewable energy to flow to homes and businesses when demand is high and solar generation drops.
The ACT Government will receive half the net revenue from the battery’s participation in the National Electricity Market, providing a financial return to the Government balance sheet, Mr Barr said.
Eku Energy is constructing concrete bases for the batteries and the main switching building.
Tuggeranong Arts Centre reopens
The Tuggeranong Arts Centre Theatre has reopened after a $2 million refurbishment — its first major upgrade since opening in 1998.
Improvements include new seating, lighting, audio and projection systems, modern dressing-rooms, a refreshed reception area and retail space, and accessibility upgrades.
The venue has been renamed the Wood-Mico Theatre, after former arts minister Bill Wood and director Dominic Mico.
“The upgrade unlocks new possibilities for our theatre,” CEO Caroline Downer OAM said. “Enhanced lighting, sound, and backstage tech mean we can stage more ambitious productions. Artists benefit from better access, and patrons enjoy greater comfort and accessibility.”
2025 ACT Book of the Year shortlisted
Four books have been shortlisted for the 2025 ACT Book of the Year award: Lebanon Days by Theodore Ell; Model Minority Gone Rogue by Qin Qin; Stories My Grandmothers Didn’t Tell Me by Andra Putnis; and Warra Warra Wai by Darren Rix & Craig Cormick.
The ACT Book of the Year recognises quality, contemporary literary works by local authors published in the previous calendar year across multiple genres.
56 entries were received this year. Arts minister Michael Pettersson MLA said the shortlist reflected the diversity and creativity of Canberra’s writing community.
The winning book will be announced on 24 October as part of the 2025 Canberra Writers Festival.
Nominations open for 2025 CBR Sport Awards
Nominations are now open for the 2025 CBR Sport Awards, which recognise Canberra’s top athletes, teams, coaches, volunteers, and sporting groups.
Nominations close on 8 October. Winners will be announced at a ceremony in November.
For more information, visit the CBR Sport Awards website.
