Canberrans are set to be smacked with new taxes and rate hikes, as Treasurer Chris Steel unveils a record deficit in his first ACT Budget.

homeowners will see rates rise by up to 18 per cent and a new $250 annual health levy introduced.

More businesses will also be hit with payroll tax.

Mr Steel says the government aims to raise over $520 million through these measures, while capping the growth of public service departments, excluding health and education.

There’s $1.19 billion going to the public health system, funding more elective surgeries and bulk-billing incentives.

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