$200m four-year contract awarded for provision of Allan government’s travel management services

The Allan government is planning to spend $1m a week on travel, raising criticism that “Labor cannot manage money and Victorians are paying the price”.

The Allan government is planning to spend $1m a week on travel over the next four years as Victorians continue to battle cost-of-living pressures.

As it works to rein in its budget – and reverse projections of a $194bn debt bill by 2028-29 – the government has awarded a $200m four-year contract for the provision of its travel management services.

The contract covers booking and travel management for an estimated 160 departments and agencies, including air travel, hotels, transport rental and account management.

Premier Jacinta Allan and her government are set to spend $1m a week on travel. Picture: Andrew Henshaw

The contract price tag is double the previous $100m contract for similar services, but that spanned more than eight years between September 2016 and February 2025.

The contract, awarded in March, lists the $200m value as an estimate only.

Opposition treasury spokesperson Jess Wilson said the contract reflected an out-of-touch government.

“Instead of spending $1m a week chauffeuring public servants interstate and overseas, that money should be going into our schools, hospitals and roads while reducing the tax burden on Victorian households and businesses,” she said.

“For once, can the Treasurer demonstrate some financial restraint? The Allan Labor government should be putting a stop to all non-essential travel given Victoria’s financial crisis.

“With Victoria’s net debt growing by $2m an hour, spending such a significant amount of taxpayers’ money on corporate travel services demonstrates Labor’s priorities are all wrong.

“Labor cannot manage money and Victorians are paying the price.”

Opposition treasury spokesperson Jess Wilson said the contract reflected an out-of-touch government. Picture: Aaron Francis

The latest Victorian financial report showed the government had shaved $68m of spending projections since May this year.

It contributed to a better than expected $2.6bn operating deficit for 2024-25, an improvement on the $2.4bn estimated in May’s Budget.

Net debt also came in lower than expected, despite public servant wages blowing out by $540m more than forecast.

A government spokesperson defended the big travel spend saying: “like any large organisation, travel management services are used to save time and money when travel is required for work.

“There is strict oversight on spending for travel, and this service ensures agencies get the best value for money.”

The government has defended the big travel spend. Picture: Aaron Francis

Last month the Herald Sun revealed taxpayers were left with a $70,000 bill for Treasurer Jaclyn Symes’ first overseas trip, a week-long New York visit to convince ratings agencies not to impose a damaging credit downgrade.

It included $41,410 for airfares and $25,410 for accommodation in the 10-day visit.

A further $3304 in extra expenses was also spent by Ms Symes, her chief of staff Ken Macpherson and the Premier’s chief of staff Damian Karmelich.

The latest Department of Parliamentary Services annual report, published on Wednesday, showed more than $1m was spent on travel by MPs and parliamentary staff between 2024-25.

It included $600,728 in travel allowances and $403,383 on international travel.