Key Takeaways:
- The ACT Government faced a challenging year in 2025, with Treasurer and Transport Minister Chris Steel experiencing a "trifecta of troubles" including the botched MyWay+ rollout and a record $1.1 billion deficit.
- Chief Minister Andrew Barr is expected to step down in 2027, and the transition to a new leader poses significant risk for the government.
- The government’s economic credibility was tarnished by a credit rating downgrade and rising debt, and the 2026 Budget must reduce the deficit and put the Territory on a path to a more manageable bottom line.
- The government’s infrastructure program, including light rail stage 2A and the Lyric Theatre project, is ongoing, but disruptions are causing concerns for local businesses.
- The Opposition should be more organized by 2026, and Labor cannot afford another year like 2025.
Introduction to the Challenges Faced by the ACT Government
The ACT Government, led by Chief Minister Andrew Barr, faced a tumultuous year in 2025. Treasurer and Transport Minister Chris Steel endured a "trifecta of troubles," including the botched MyWay+ rollout, a record $1.1 billion deficit, and planning issues. The government’s economic credibility was tarnished by a credit rating downgrade and rising debt. As the year drew to a close, it became clear that 2026 would be a critical year for the government to address these challenges and set the tone for the path to the 2028 election.
The Impact of the MyWay+ Rollout and Budget Deficit
The MyWay+ rollout was a significant disappointment, with bugs persisting beyond teething issues and the system still not meeting expectations. This led to a damning Legislative Assembly Committee inquiry report, a censure of Mr. Steel in the chamber, and a press conference in which he refused to apologize. The 2025 Budget, handed down by Mr. Steel, revealed a record $1.1 billion deficit and debt spiraling out to $13.6 billion in 2028-29. The government’s economic credibility was further damaged by a credit rating downgrade from AA+ to AA due to its large deficits and rising debt.
The Challenges Facing the Government in 2026
In 2026, the government must address the issues that plagued it in 2025. The 2026 Budget must reduce the deficit and put the Territory on a path to a more manageable bottom line and debt level. The government must also sort out the MyWay+ system and the public transport system, which will be further complicated by the Commonwealth Bridge renewal works. Additionally, housing starts must increase, and school funding must be repaired. The government’s infrastructure program, including light rail stage 2A and the Lyric Theatre project, is ongoing, but disruptions are causing concerns for local businesses.
The Transition to a New Leader
Chief Minister Andrew Barr is expected to step down in 2027, and the transition to a new leader poses significant risk for the government. Mr. Steel is considered the front-runner to succeed Mr. Barr, but his troubles in 2025 have damaged his reputation. The government must put the issues of 2025 behind it in 2026 to ensure a smooth transition. The Opposition, which should be more organized by 2026, will be watching the government’s progress closely, and Labor cannot afford another year like 2025.
The Role of Other Ministers
Other ministers, such as Health and Finance Minister Rachel Stephen-Smith, also face significant challenges. Health is consuming a third of the Budget, and the government needs to find savings to put it on a better financial footing. Ms. Stephen-Smith has shown patience and persistence in dealing with the health sector, but the government will be looking for a new funding deal from the Commonwealth in 2026 to make a significant difference. The government’s infrastructure program, including the Northside Hospital, the new Canberra Aquatic Centre, and the Kingston Arts Precinct, is ongoing, and the government must ensure that the focus on big-ticket items does not detract from smaller ones and basic service delivery.
Conclusion
In conclusion, the ACT Government faces significant challenges in 2026. The government must address the issues that plagued it in 2025, including the MyWay+ rollout, the budget deficit, and planning issues. The transition to a new leader poses significant risk, and the government must put the issues of 2025 behind it to ensure a smooth transition. The Opposition will be watching the government’s progress closely, and Labor cannot afford another year like 2025. The government’s infrastructure program is ongoing, and the government must ensure that the focus on big-ticket items does not detract from smaller ones and basic service delivery.