Standing up for Canberra

Report shows ACT economy bracing for cuts

A report released by CommSec today shows the ACT has the weakest level of business investment in the nation, with population growth, retail spending and construction also down.

“The ACT is bracing itself ahead of expected public service cuts in the May budget,” Ms Brodtmann said.

“The fact that business confidence is declining shows that people are preparing for the worst.

“Canberrans have been in a state of uncertainty since the Abbott Government was elected, not knowing when or if the Commission of Audit will be released, and what that will mean for the public service and for Canberra.

“It is clear that this uncertainty is now constraining our economy.

“If the Abbott Government is true to its election promise, then next month’s budget will bring a 0.25% increase to the efficiency dividend.

“This comes on top of the indefinite APS wide hiring freeze that is already in place.

“The Commission of Audit may recommend further cuts to the public service.

“While the ACT economy is now more diverse and in a better position to absorb these cuts than it was in 1996, they are still going to hurt.”

CommSec’s State of the States report ranks the states and territories based on eight key indicators: jobs market, housing pickup, business investment, construction work, retail spending, economic growth, population growth and home lending.