Canberra's economy isn't the only thing set to grow in the national capital, with the ACT tipped to have the fastest population growth rate in the country.
As Chief Minister and Treasurer Andrew Barr handed down his 12th territory budget on Tuesday, nationally low unemployment and high population growth are set to propel the ACT back into surplus.
A deficit of $442.7 million has been forecast for the 2023/24 financial year, but the territory is set to be $141.9 million in the black by 2025/26.
"While the outlook for the Australian economy remains uncertain, the ACT economy is well placed to continue to grow, and improve the wellbeing of Canberrans," the budget papers said.
Canberra's population is set to swell by almost 10,000 people in the upcoming financial year, with the ACT on track to become the fastest-growing state or territory by 2026/27.
The historically high growth rates of more than two per cent in both 2022/23 and 2023/24 have been driven by the return of international students and skilled migrants following a COVID-driven downturn.
The population of the territory is set to grow on average by 1.75 per cent over the next decade.
To meet the expected growth, $1.6 billion will be spent on infrastructure in the upcoming financial year, with more than $8 billion to be splashed out over the next five years.
Housing demand is also set to grow as a result, with the budget setting aside $345 million for initiatives such as improving access and easing rental stress.
There will be $60 million for a project fund to support long-term affordable rental houses.
Rental vacancy rates in the ACT are the highest in Australia, while dwelling stock grew by 2.6 per cent through to the March quarter this year.
"This suggests that supply in the market is better accommodating demand, despite strong population growth," the budget papers said.
Unemployment in the territory is 2.9 per cent, the lowest in the country, with the ACT's economy set to grow by 3.75 per cent during 2022/23.
The budget has forecast that while economic growth would be moderate in the coming financial year, it would be strengthened from 2024/25, following a rise in real wages and stronger household consumption spending patterns.
Amid rising power prices across the states and territories, the ACT is expected to see just a $75 annual rise for a typical electricity bill.
"Despite this increase, the average annual bill for Canberrans on standing offers will remain the lowest in Australia compared to the average standing offer bills faced by customers in NSW, Victoria, Queensland and SA," the budget papers said.
The government will also lift the price cap for the owner-occupier duty concession for stamp duty on off-the-plan purchases by $100,000 to $700,000 in 2023/24.
It will further reduce stamp duty for all owner-occupier purchases under $1,455,000.
A further $37.8 million will be spent to provide cost-of-living relief for low-income households.
