The ACT budget papers are out. Here are the five key takeaways

The ACT budget papers show the deficit has not shrunk as much as was forecast. (ABC News)

After weeks of build-up, the full details of the ACT's budget have been revealed.

And after dealing Canberrans a tough set of cards in his first budget, Treasurer Chris Steel's second has far fewer surprises.

Let's take a look at the key takeaways from the 2026-27 ACT budget.

It was the biggest takeaway from last year's budget — a controversial $250 health levy applied to all ratepayers.

It was so controversial the government was forced to slash it to $100.

ACT Treasurer Chris Steel hands down the 2026-27 ACT budget. (ABC News: Stuart Carnegie)

The government says it has been able to get rid of the levy after securing additional funding from the Commonwealth under the National Health Reform Agreement.

While removing the levy has cushioned the blow for some ratepayers, the average rates bill increase for most households will be 5 per cent.

And every suburb, except Macnamara, will see an increase in their general rates.

For homes, the highest rate rise is 13 per cent in the inner-south suburbs of Forrest and Griffith.

For units, the rate increase is highest in Ainslie, at 19 per cent. There's also a 16 per cent increase for units in Red Hill.

The ACT budget is focused on easing housing stress. (ABC News: Ian Cutmore)

It's clear housing is the government's key theme for this budget.

In the morning before the budget was released, it was announced the ACT would become the first in the nation to abolish stamp duty for all first home buyers, regardless of income or home value.

That's beginning in July this year and is part of a long-term ambition from the government to abolish the tax on all house sales.

Pensioners, eligible National Disability Insurance Scheme participants, and all home buyers who have not owned property in the past five years will also be exempt from paying stamp duty.

And owner-occupiers buying new apartments or townhouses won't have to pay the tax.

Today's ACT budget will deliver measures to make the territory the first Australian jurisdiction to remove stamp duty for all first home buyers, the government says.

Also among the suite of changes announced by the government today were measures aimed at increasing the number of homes in the "missing middle" — defined as housing types between multi-unit apartments and single detached dwellings.

That includes a temporary halving of the lease variation charge, and a removal of stamp duty on all new unit-titled properties bought by owner-occupiers.

Earlier in the week, the government also p