Premier reveals $400 school kids bonus in state budget

A new $400 bonus for an estimated 700,000 Victorian students will be unveiled in today’s state budget, as the government aims to ease cost-of-living pressures for families.

A new $400 bonus for an estimated 700,000 Victorian students will be unveiled as the key cost-of-living measure in today’s state budget.

The one-off $400 School Saving Bonus will feature as a centrepiece of Jacinta Allan’s first budget as Premier, in which she has vowed to be family focused.

It comes as the Herald Sun can reveal predictions Victoria will record an operating surplus of $6.1bn by 2027-28 alongside a fall in the size of net debt as a percentage of the overall economy, for the first time since 2017.

The $287m cash-for-kids scheme will provide one-off payments for every child at a government school and eligible concession card holders at other schools.

Parents will be free to elect how to spend the money, which will be administered by schools later this year, on education-related expenses including uniforms, camps, excursions and sporting events.

Victorian Premier Jacinta Allan has vowed to make the budget family focused. Picture: Nicki Connolly

Credits or vouchers will be available to contribute to school or uniform costs.

“We’re delivering a budget that’s helping Victorian families – and the School Saving Bonus sits at the heart of our plan to ease cost-of-living pressures for families right across the state,” Ms Allan said.

“We won’t let any child miss out on the things that make Victorian education great, so we’re giving families the flexibility to use the School Saving Bonus on the things they need – from sports to camps, excursions and uniforms.”

The initiative is expected to be one of various measures implemented by the government to address rising cost-of-living pressures while it works to rein in spending and repair the state’s economic position.

Net debt is currently forecast to peak at an estimated $177.8bn by 2026-27, or the equivalent of about a quarter of Victoria’s Gross State Product.

Forecasts to be released today are expected to predict a fall in the net debt to GSP ratio for the first time since 2017.

Treasurer Tim Pallas is also expected to foreshadow an operating cash surplus of $6.1bn by 2027-28, however the state is likely to remain in deficit for some time.

Ahead of the budget Ms Allan said it would be “sensible and disciplined” that will be “firmly focused” on Victorian families.

Parents will be able to spend the cash on sports, camps, excursions and uniforms.

For months senior government ministers have been warning of a horror budget that would include job losses and slashed spending across all government departments.

Tourism chiefs have raised fears tens of millions of dollars will be cut from their budgets, while questions remains over health funding and a potential overhaul of the entire health system to address billion-dollar blowouts.

However Ms Allan has repeatedly recommitted to forging ahead with the contentious Suburban Rail Loop, which the independent Parliamentary Budget Office has predicted would cost an estimated $216bn for the first two stages.

“It’s a budget that’s been challenging to put together … in a domestic and global environment which faces many, many pressures,” Ms Allan said.

“These are challenges we can’t ignore. We simply can’t put our head in the sand.

“We are focused on how we can support Victorian families as Labor governments always do.”

Treasurer Jim Chalmers on Monday welcomed states providing cost of living relief in their budgets.

Mr Chalmers said it was important that the lives of people in their jurisdictions were made a “little bit easier” and did not rule out support for Victoria’s ongoing big spend on infrastructure.

“I welcome the contribution that some states are making to that effort,” he said.

“I like to work with the states and territories rather than against them.”

Mr Chalmers wished his Victorian counterpart, Tim Pallas, well ahead of Tuesday’s state budget.

“I respect him and I like working with him and no doubt he’s got he’s had some difficult decisions and trade offs to make, in the same way that we have difficult decisions and trade offs to make,” he said.