Media Release: Albanese Government delivers for Canberra in the Federal Budget

12 May 2026

Media Release with Senator the Hon Katy Gallagher, the Hon Andrew Leigh MP and Alicia Payne MP.

Tonight’s Federal Budget brings the Albanese Labor Government’s investment in Canberra to more than $4 billion in the ACT since coming to office, making sure Canberrans are getting their fair share.

This year’s budget delivers important investments for Canberra, building on our strongest ever commitment to Canberra, with funding for infrastructure, community services, national institutions and practical cost-of-living relief.

This level of investment demonstrates what Labor governments can deliver when they work together, Labor is delivering the projects and services that Canberra needs, while also supporting local jobs and strengthening the national capital for the future.

The Budget builds on our significant local investments that support better services, community organisations and deliver better infrastructure across the ACT including:

  • $50 million for the ACT’s share of the Housing Support Program - the Local Infrastructure Fund to support utilities to deliver more housing-enabling infrastructure. This builds on the more than $1 billion committed to the ACT by this government for housing programs including HAFF, the Social Housing Accelerator, and the Housing Support Program.
  • Funding of $3.1 million has been committed to the National Jewish Memorial Centre, recognising the importance of ensuring the stories, history and contributions of Australia’s Jewish community are represented in the national capital.
  • $30 million for an RSPCA animal welfare campus in Pialligo. This facility will serve as the new, modern home of RSPCA ACT as they provide safe and compassionate care for animals.
  • The Government is also investing $200,000 to support victim-survivors in the ACT through the Local Support Coordinator Program. This funding will help ensure people can access practical support and assistance when they need it most.
  • Young people and families will benefit from $1.4 million to improve youth mental health services in the ACT.
  • The Budget continues to invest in Canberra’s growing transport network, with $50 million for the duplication of Drake Brockman Drive and a further $4.6 million to progress planning work for the Molonglo East–West Arterial.
  • Canberra’s connection to Sydney will also be strengthened through a $50 million investment in priority upgrades to the Sydney to Canberra rail corridor.
  • The Government is continuing to support Canberra’s national institutions, with $9.9 million for the National Film and Sound Archive to help protect and preserve nationally significant collections for future generations.
  • $3 million for the Museum of Australian Democracy as it prepares for its centenary, ensuring Old Parliament House remains a place where people can learn about Australia’s democratic history.
  • The Government is continuing to support Australia’s science and research capability through funding for the long-term sustainability of the CSIRO.

Tonight’s budget includes measures that will benefit the Canberra community:

  • A new tax cut of up to $250 for 260,000 working Canberrans through the Working Australians Tax Offset.
  • A new instant tax deduction of up to $1000, benefitting 140,000 Canberran workers, with an average saving of $205 in 2026-27.
  • Legislated tax cuts starting 1 July this year and next year, worth up to $536, on top of the first round of tax cuts delivered in 2024.
  • Reforming the tax system to make it easier for Australians to own their own home.
  • Strengthening access to public dental services, including through the Child Dental Benefits Schedule.
  • Eligible older Australians will also benefit from the addition of an RSV vaccine to the National Immunisation Program.

This Budget reflects the Albanese Labor Government’s continued commitment to Canberra, our growing city and our community.

Quotes attributable to Minister for Finance and Senator for the ACT Katy Gallagher:

“Tonight’s Budget brings the Albanese Government’s investment in Canberra to more than $4 billion since coming to office, making sure Canberrans are getting their fair share as the national capital.

“This Budget builds on the strongest commitment any federal government has made to Canberra, investing in the infrastructure, national institutions and community projects our growing city needs.

“It also shows what can be achieved when Labor governments work together to support local jobs, strengthen the national capital and deliver practical improvements for the ACT community.”

Quotes attributable to Assistant Minister Andrew Leigh, Member for Fenner:

“This is a Budget that recognises Canberra’s dual role as a local community and Australia’s national capital.

“It invests in the roads, rail, housing infrastructure and services that matter to residents, while strengthening the institutions that preserve our democracy, science and culture.

“By supporting more housing and making the tax system fairer, it gives more Canberrans a better chance to turn the key in a front door of their own.”

Quotes attributable to Alicia Payne MP, Member for Canberra:

“I’m particularly proud of what our Government is doing to help more Australians into housing, from making more social housing available to young people facing homelessness, to making the housing market more accessible to first home buyers.

“I’m proud to be part of a Government that recognises our city, our national capital, as a community as well and continues to invest in Canberra.”

Quotes attributable to David Smith MP, Member for Bean:

“Labor promised to deliver for our community, and we are doing just that.

“This Budget not only delivers for Australia, but puts meaningful, impactful investment into our community; our healthcare, our infrastructure, our homes.”