Big prison spend, but less for police in crime crackdown

Victoria Police will have to rein in spending despite the state government’s law and order push and a $779 million expansion of the prison system.

The government splashed $1.6 billion on new crime and justice initiatives in the 2025-26 budget, compared with the $535 million in new funding allocated last year.

Treasurer Jaclyn Symes addresses the media on Tuesday.Credit: Joe Armao

Overall, the government expects crime and justice spending to increase by 6 per cent (from last year’s budget) to $10.2 billion.

But Victoria Police’s budget to deliver services for 2025-26 is $4.5 billion, down from the $4.55 billion it forecasts spending this financial year.

The government says this is due to a one-off “patience in bargaining” payment made to officers when their enterprise bargaining agreement was resolved.

The government has faced pressure to take further action on crime, particularly youth offending, after an increase in high-profile home invasions and car thefts.

As a result, the government overhauled bail laws earlier this year, meaning remanding youth offenders in custody is no longer a last resort for judges and magistrates, and community safety is the overarching principle for all bail decisions.

Those changes are expected to significantly increase the number of people in the state’s prisons.

There is $779 million in new funding over four years earmarked for prisons and youth justice custodial services, which the government says will allow for more prison beds to deal with increased number of offenders being refused bail. It also includes money for a machete-disposal scheme.

The budget has set aside $2.8 million in new funding next financial year for police recruitment campaigns, $2.6 million in 2026-27, and nothing in the years thereafter.

An overhaul of the victims of crime financial assistance scheme will cost about $284.2 million over four years.

“Our tough new bail laws mean more people charged with serious offences are remanded, so we’re boosting the system and also helping offenders return to the community and be productive, rehabilitated Victorians,” Corrections Minister Enver Erdogan said.

But spending on police and community safety is budgeted to fall in real terms, with just a 0.2 per cent increase to $4.5 billion in projected funding compared with last year’s budget allocation.

When compared with the revised estimate of spending in 2024-25 of $4.55 billion, funding would fall by 1 per cent.

Sources familiar with Victoria Police’s operations, who are not authorised to speak publicly, previously said the force was being pressured to find savings by slashing operations in the face of a deepening financial crisis.

As well as stagnating police funding, the budget reveals cuts to spending on prosecutions and legal assistance; forensic justice services; and advocacy, human rights and victim support.

The papers said these cuts in funding targets were due to “efficiencies”, a completion of programs, and a focus on frontline services.

Opposition Leader Brad Battin said blowouts for the government’s Big Build infrastructure agenda were leading to cuts to services.

“We know crime is continuously going to increase, and I’m sure when the next lot of crime statistics come out, crime will be up again in Victoria and police numbers down,” he said.

“But even worse, the government has cut the police funding so much that we’ve seen the reports where stations are now told to mow their own lawns, and they can’t afford to get gardeners to do it.”

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