Victorian budget 2025: All the winners and losers revealed
With an ever-growing debt and a promise of no new taxes, the Victorian government has revealed a “responsible” budget for 2025-26.
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With an ever-growing debt and a promise of no new taxes, the Victorian government has revealed a “responsible” state budget with a primary focus on cost-of-living measures and supporting struggling families.
Here are the winners and losers.
WINNERS
Health
Treasurer Jaclyn Symes’ first budget includes a record-breaking investment in hospitals and the health sector.
The state will injecting an additional $11.1bn into health, including $634.3m to build or expand nine new hospitals.
A further $9.3bn will be invested into existing hospitals, including Footscray Hospital, Frankston Hospital and Maryborough and District Hospital.
There will also be a $48.2m investment into expanding the network of state-run urgent care clinics and Community Pharmacy programs across the state.
The budget has allocated $57m for upgrades to the Royal Melbourne Hospital, with funding also invested to redevelop regional emergency departments, including Swan Hill District Health, Albury Wodonga Health and University Hospital in Geelong.
The capacity of the Victorian Virtual Emergency Department will “almost” triple with a $473m investment.
The budget has zeroed in on mental health with a $7.5m investment into the Hospital Outreach Post-Suicidal Engagement program, LGBTIQA+ Aftercare support, and Strong Brother Strong Sister and Yarning Safe N Strong for Aboriginal Victorians.
A further $34.5m will be invested in the state’s network of Mental Health and Wellbeing Locals, which provides free mental health care without a referral or Medicare card.
Community safety
The government will commit $727m to expand the state’s prison and youth crime network.
This investment includes adding an additional 1000 adult prison beds and 88 youth prison beds in Cherry Creek and Parkville to accommodate the increasing number of offenders being denied bail.
There is also a $13m investment to ban machetes and implement a drop-off box for people to hand in their weapons.
As part of the state’s crackdown on crime, $106.4m will be invested in the youth justice system, including in-house rehabilitation, intensive oversight for high-risk offenders and family support workers.
Public transport users
In the lead-up to the budget release, the Victorian government announced it would allocate $1.2bn for public transport, including a $318m investment for a free public transport scheme for kids under 18 that would save a family an average of $755 per year per child. .
Seniors will haveaccess to free public transport on weekends, with the government investing $2.2m for statewide free transport.
A further investment of $162m will be put aside to deliver new and improved bus services.
The Allan government will invest $4.1bn to develop Sunshine station, and a further $46m to deploy additional services from the Craigieburn, Sandringham, Upfield and Werribee lines.
The government said it would inject $727m to “operationalise” the Metro Tunnel, which is already been built and set to open at a later date.
Drivers
It’s not just public transport users set for an investment boost, with the West Gate Tunnel expected to open this year.
Regional transport networks will receive a $777m investment, including $137m for regional road maintenance.
Across the state, the government will invest $976m to repair potholes and upgrade roads, with a further $50m for maintenance on the San Remo Bridge at Phillip Island.
In conjunction with the federal government, $250m will be used to upgrade the Werribee Main Rd.
Families
The government is investing $152.3m to increase funding for the Camps, Sports and Excursions Fund, which will provide $400 for eligible students.
Free kinder for three and four-year-olds will continue with an injection of $859m, saving families up to $2600 per year per child.
The government has also committed to delivering $272m into child protection and family services and a further $90m to support kids in out-of-home care.
Energy bills are set to be cut for struggling families, with the government investing $50m for the $100 Power Saving Bonus, which will be available for households with an eligible concession card.
A further $29.7m will be committed to deliver an additional 27,000 hot water rebates and $12m to support training for the Victorian Energy Upgrades Program, which is set to half the cost of ceiling insulation and save families up to $400 off their energy bills.
Schools
The Victorian government is committing $133m for improved literacy and maths, including a $16.3m investment for a new Numeracy Check grade.
TAFE and training courses will continue to be subsidised with a $171m investment.
The Living Learning program with Melbourne City Mission and Hester Hornbrook Academy will also receive an investment of $7.5m to offer young people a chance to finish their education.
The government is also committing $25.6m into its Navigator program, which aims to address chronic student absenteeism.
Small businesses
The government will invest $627m into supporting business across the state.
This includes $150m into the Victorian Investment Fund, which aims to deliver grants and expand priority sectors for businesses and industries, and a commitment of $240m to the Economic Growth Statement.
Homebuyers
Ahead of the release of the budget, Ms Allan announced a commitment of $61m to continue the stamp duty concession for off-the-plan apartments, units and townhouses for another 12 months.
LOSERS
Farmers
The government’s promise of no new taxes in the budget excludes the new emergency services levy, which was passed through the upper house on Thursday and is intended to increase funds for the State Emergency Services (SES), triple-0 and the state control centre.
The levy has triggered massive outrage from farmers across the state who took to the streets of Melbourne’s CBD in protest, labelling the tax as an “insult to farmers”.
Thousands of Country Fire Authority (CFA) volunteers also took to the streets to protest the fire levy at Parliament House on Tuesday in the wake of the budget, urging Ms Allan to “scrap the tax” and arguing that it would cripple already struggling farmers.
Public servants
More than 1200 full-time equivalent public servant jobs are on the chopping block in an effort to claw back some of the debt racked up by the government, though Ms Symes said natural attrition would account for some of the cuts.
Police
Campers
Outdoor lovers will feel the pinch as the government’s free camping deal, which spanned all 131 paid campsites for Parks Victoria, comes to an end in June. It will be replaced with half=-price camping fees, which will be in place until June 2027.
The economy
The budget has projected a $600m operating surplus, which is about $1bn less than its forecast last year.
Net debt is forecast to grow and hit a record high of $194bn by June 2029, with the state’s forecast debt of $167.9m in 2025-26 sitting at 25.1 per cent of Victoria’s economy.
However, it is the first operating surplus since the Covid-19 pandemic, a feat Ms Symes said demonstrated the government could “service that debt while delivering the infrastructure and services that Victorians need”.
“From here, net debt will continue to fall as a share of the economy, and we will see continued surpluses in the years to come – allowing us to continue to provide services and infrastructure that Victorians need,” Ms Symes said.
Originally published as Victorian budget 2025: All the winners and losers revealed
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