ACT Chief Minister Andrew Barr has hit out at the Morrison government over its failure to protect university jobs, in a scathing assessment of Tuesday evening's budget.
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Mr Barr said there were a number of missed opportunities in Treasurer Josh Frydenberg's second budget, which would "leave many Canberrans nervous about their job prospects".
He said the higher education sector had been "decimated" by the coronavirus pandemic but the federal government had no clear plan to protect jobs in the industry.
Mr Barr also said failing to permanently increase JobSeeker was "a cruel decision ... that will place vulnerable Canberrans at risk of falling back into poverty".
"What is clear is that the ACT government will have to continue shouldering the burden on job creation in the territory over the next two years," Mr Barr said.
And while the ACT scored a reprieve on repayments on an historic housing loan, Mr Barr said it was the wrong loan.
The territory will save $400,000 over the next three years with early repayments and reduced interest.
However The Canberra Times understands the loan is only worth around $2 million.
The territory has been calling on the federal government to waive a $115 million housing debt which dates back to self-government.
Independent senator Jacqui Lambie negotiated a similar waiver for the Tasmanian government in exchange for supporting the Coalition's $158 billion income tax cut plan.
"The ACT's historic social housing debt, which continues to attract an interest rate of 4.5 per cent, has not been waived for Canberrans," Mr Barr said.
"It is incomprehensible that the same debt can be waived for Tasmania and not for the ACT. In government, Labor has made it clear that savings from the debt waiver would be reinvested into new social and community housing."
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The budget also included around $155 million for roads projects in the territory as part of coronavirus stimulus measures.
It takes the cumulative investment in transport infrastructure in the ACT over the past six years to $975 million.
However ACT senator Zed Seselja pointed out that, on a population basis, the $155 million spend for Canberra was the equivalent of Melbourne getting around $2 billion.
Canberra's institutions will also receive a $31.2 million boost. The budget includes $2.5 million for the National Film and Sound Archive; $4.5 million for the National Gallery of Australia; $5.4 million for the National Library of Australia; $3.9 million for the National Museum of Australia; and $1.2 million for the National Portrait Gallery of Australia.
The Australian Electoral Commission will also receive $6 million over the next two years to design and install a new exhibition promoting Australia's voting system in the Museum of Australian Democracy, and to upgrade the National Electoral Education Centre in Old Parliament House.
"Today's budget has shown continued investment in Canberra by the Liberal-National government, building on more than $1 billion in infrastructure investment in Canberra in the last two years alone," Senator Seselja said.
Canberra Business Chamber chief executive Graham Catt welcomed the budget's jobmaker scheme and tax cuts.
He said the budget's strategy recognised that businesses, particularly small businesses were the engine room of the economy.
"In the ACT, there are 30,000 businesses, who provide two thirds of Canberra's jobs," Mr Catt said
"This budget recognises that supporting those business is critical to jobs and our economic recovery."
He welcomed JobMaker and the 50 per cent wage subsidy for new apprentices and trainees.
"It will help to turn around a decline in apprenticeship numbers, and comes on the heels of the government committing to growth in the overall investment in vocational education and training," he said.
"Initiatives such as extending the investment incentive so that businesses can more easily buy equipment, and allowing companies to offset losses against prior year profits will also help a range of local companies."
He said the confirmation of personal tax cuts being backdated to July 1 2020 would help the economy
"This will let households keep more of their own money to spend, and that money should find It's way into our local economy and businesses."
- with Julia Kanapathippillai
