What the 2025-26 Victorian state budget means for you

A public transport blitz and a massive cash splash to try and retain teachers. No new taxes, but the state’s debt bomb will hit a new record high. Find out what the state budget means for you.

Here’s what the 2025-26 state budget means for you.

Premier Jacinta Allan and Tresurer Jaclyn Symes have handed down the 2025-26 state budget. See what it means for you.

Your family

The government will give $152.3m to increase funding for the Camps, Sports and Excursions Fund meaning every one of the eligible 200,000 students will get $400 to attend school events and sports teams.

An extra $859m will be spent on free kinder programs to save families up to $2600 a year per child. Picture: iStock

$15m will also be spent on Get Active Kids vouchers, giving $200 vouchers to cover fees and equipment costs to join sports clubs for families on Health Care or concession cards.

Free kinder will continue with an additional $859m being used to save families up to $2600 a year per child.

Your job

Wage growth is expected to beat inflation in the next year with a forecast 3.25 per cent growth.

But it will be harder to find a job as the unemployment rate will rise marginally to 4.75 per cent, up 0.25 per cent.

The unemployment rate is expected to rise to 4.75 per cent. Picture: iStock

If you want to move into nursing or midwifery, the government is investing $203m in expanding training and funding 1100 more student positions.

The government is trying to make teaching a profession more people want to join and stay in, investing $159m to attract and retain teachers.

There will also be $7.4m to recruit more police.

Your commute

The government has said they are on a “public transport blitz” in this budget, with $4bn to redevelop the Sunshine Station and $727m to “operationalise” the already-built Metro Tunnel.

They will also invest $98.7m to deliver more services on the Werribee, Sandringham, Craigieburn, Upfield, Gippsland, Seymour and Bendigo lines.

Public transport will be made free for everyone under 18 from the start of next year, saving families $755 a year per child.

Seniors will also be able to travel free on weekends across the whole state, upgrading the current arrangement which only allows free travel between two neighbouring zones.

The government will invest $98.7m to deliver more services on several key train lines.

Your drive

The government has committed to opening the West Gate Tunnel this year.

$976m will be used to plug potholes and upgrade road surfaces across Victoria.

The government has committed to partner with the federal government to spend up to $250m to upgrade the Werribee Main Rd.

A further $50m will be spent on maintenance work on Philip Island’s San Remo Bridge.

The government has committed to opening the West Gate Tunnel this year. Picture: Valeriu Campan

Your taxes

No new or increased taxes were introduced in the budget, however the figures show the government’s tax take is soaring by almost $11bn between 2023 and 2026.

In the 2022-2023 financial year, $31bn was raised in tax. Tuesday’s budget papers revealed that figure was set to hit $41.7bn in 2025-2026.

That includes a $2.6bn increase between 2024-2025 and 2025-2026, with the new Emergency Services and Volunteer Fund to raise an extra $600m in the first year and $2.1bn over the following three years.

Our economy

Victoria’s debt bomb will continue to grow and hit a new record high of $194bn by June 2029 despite efforts by the state to reduce net debt over the forward estimates.

In 2025-26 the state’s debt will hit $167.6bn sitting at 25.1 per cent of the state’s economy.

This is down from the previous forecast of $168.5bn as of June 2026 – a saving of $900m – but over the longer term debt will continue to balloon.

The annual interest bill on the government’s debt will also continue to grow, hitting $7.5bn in 2025-26 – costing Victorian’s $20.7m each day.

Your health

There will be $9.3bn for hospitals including $634m to open and operationalise nine recently completed hospital projects, including the new Footscray Hospital.

$48.2m to continue urgent care clinics and fund the community pharmacy program, which has been made permanent and allows pharmacists to provide free treatment for certain conditions without a doctor’s prescription.

$437m will be used to “almost” triple capacity of Victorian Virtual Emergency Department.

There will be $9.3bn for hospitals, including $634m to open nine recently completed hospital projects, including the new Footscray Hospital.

Your schools

In addition to the camps and excursions fund boost, $10m will go to expanding the school-wide positive behaviour program to another 408 schools.

An additional $133m has been committed for improved reading, writing and maths, including $16.3m for a new grade on numeracy check.

Your home

Stamp duty cuts will be extended on off-the-plan apartments and units.

The $61m boost will be available for all buyers, not just first homeowners.

$24m is committed to support the state’s planned Train and Tram Zones activity centres, with 300,000 extra homes intended to be built around the state by 2051.

A top up of $12m to the pipeline of housing estate land to the city’s outer west, north and south east, expected to support 180,000 homes.

A $61m boost will be available for all buyers, not just first homeowners.

Your power bill

Eligible concession card holders will get $100 off their power bill as the government spends $50m on a new power saving bonus

$29.9m will support rebates for 27,000 Victorian to swap out their gas hot water systems for more energy efficient alternatives, plus $12m to discount ceiling insulation installations.

Our population

The state’s population growth is forecast to remain stable over the forward estimates after returning to normal after the pandemic and years of recovery.

The latest figures from the ABS show Victoria’s population has hit 7 million, and will rise to almost 7.5 million by June 2029 – growing at an average 1.7 per cent per year.

US tariffs

Victoria’s economy is buffered from the American proposed trade tariffs but will still have impacts on the local economy with 17 per cent of goods exposed to the new cost.

Pharmaceuticals manufacturers in Victoria will be the market most exposed followed by beef, other meats, aircraft and spacecraft manufacturing, animal oils and fats.

The budget has forecast volatility could also hamper local consumer and business confidence.

Your safety

The machete ban will cost $13m, giving police extra search powers. Picture: iStock

The much-anticipated statewide machete ban will cost $13m and give police extra search powers.

An overhaul of the state’s victims of crime compensation scheme is on the cards, costing $287m.

$65m will be used to set up Victoria’s new tobacco regulator.

As revealed by the Herald Sun last week there will be $727m to expand the state’s prison system.

Your culture and sports

The Victorian screen industry will get $50.1m over the next two years to support production through a rebate and production fund.

There is a $40.3m spend on local sports clubs and facilities.

Originally published as What the 2025-26 Victorian state budget means for you