The ACT’s soaring interest bill is likely to hit government services, with repayments forecast to almost double by 2030, a Legislative Assembly committee has warned.

The Select Committee on Estimates made seven findings and 62 recommendations after examining the 2026-27 ACT Budget.

Interest expenses are forecast at $811 million this financial year and are the fastest-growing area of government spending, increasing by an average 17.6 per cent over the forward estimates. They already account for 11.1 per cent of total expenditure and more than 20 per cent of the ACT’s own-source taxation revenue.

The committee found interest repayments were likely to have a negative impact on services over the forward estimates and described them as a “clear and present risk” to service delivery.

It also raised concerns about the government’s long-running tax reform program, finding general rates were increasing by an average eight per cent, more than double wage growth. About 27,400 residential properties, or 14 per cent, are expected to receive general rates increases above 10 per cent.

The committee warned rates could reach an unsustainable level as the government seeks to replace revenue lost through the abolition of stamp duty, and recommended the remaining plan for rates and stamp duty reform be released in the Budget Review.

Public-service cuts also came under scrutiny, with the committee calling on the government to spell out which services would be reduced and what efficiencies would allow staffing levels to fall, while ensuring workloads remained safe.

Procurement emerged as another major concern following the Integrity Commission’s Operation Kingfisher investigation. The committee said it shared the Integrity Commissioner’s concern that other procurements may have been similarly influenced and called for an independent review of previous procurement to establish whether projects were selected in the public interest and delivered value for money.

It also found uncertainty over the continued existence and operation of the ACT Government’s memorandum of understanding with UnionsACT after the Secure Local Jobs Code was introduced, recommending the government clarify its status and role.

Among its other recommendations, the committee called for greater transparency around procurement and climate-change spending, annual increases to the pensioner rates rebate cap in line with residential rates, more information about Sustainable Household Scheme loan defaults and increased Commonwealth assistance for municipal services.

It also recommended CIT reduce executive expenditure in favour of teaching and program delivery, and called on the government to explain its involvement in the payout to CIT’s former chief executive.

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