May 20, 2025
VIC Budget 2025-26: Key Portfolio Measures

💰 Department of Treasury and Finance

The Government continues to focus on fiscal restraint, public service reform, and easing cost of living pressures. An extension of the stamp duty concession for off-the-plan property purchases has been announced, continuing until October 2026. This measure aims to support Victorians entering the housing market, offering eligible buyers potential savings of up to $25,000. Expenditure in the Treasury and Finance portfolio in 2025–26 includes:

Key measures

  • $1 billion in budgetary savings expected to be realised over the forward estimates from public service workforce reductions and further reforms, following the delivery of the Independent Review of Victoria’s Public Service by 30 June 2025.
  • $61.2 million over four years from 2025–26 to extend the temporary land transfer duty concession for off-the-plan apartments, townhouses and units, supporting improved homeownership outcomes in Victoria.
  • $6.1 million over two years from 2025–26 to progress recommendations from the Formal Review into Victorian Government Bodies’ Engagement with Construction Companies and Construction Unions, with funding for the complaints referral unit within the Wage Inspectorate Victoria.
  • $5.2 million over four years from 2025–26 to support Industrial Relations Victoria in overseeing public service enterprise bargaining.
  • $3.1 million in 2025–26 to support the Wage Inspectorate Victoria in promoting fair, safe and productive workplaces.
  • $2 million over four years from 2025–26 to support the Gender Responsive Budgeting unit within the Department of Treasury and Finance, aiming to improve public policy outcomes for women in Victoria.

🏛️ Department of Premier and Cabinet

The Government continues to support Victoria’s multicultural communities through targeted funding measures. Funding has also been committed to the Office of the Governor to support the preservation of Government House’s heritage. Expenditure in the Department of Premier and Cabinet in 2025–26 includes:

Key measures

  • $12 million over the forward estimates to deliver capital works at the Government House precinct to protect its heritage.
  • $7.6 million over four years from 2025–26 to support the Migrant Workers Centre’s advocacy and services for migrant workers and international students.
  • $5.6 million over two years from 2025–26 to support multicultural and multifaith communities in building or upgrading community facilities to maintain cultural and faith-based connections.
  • $3.6 million over two years from 2025–26 to support newly arrived migrant communities, including funding for regional organisations to deliver settlement support programs.
  • $2.1 million in 2025–26 to support multicultural seniors’ groups in improving social participation and wellbeing outcomes for older Victorians.

🛣️ Department of Transport and Planning

The Government has announced that from 1 January 2026, children under 18 will be able to travel free on all public transport across Victoria. It is also continuing preparations for the opening of the Metro Tunnel and the delivery of train services to the five new underground stations. Expenditure in the Department of Transport and Planning in 2025–26 includes:

Key measures

  • $713.4 million to support the opening of the Metro Tunnel and deliver train services to five new underground stations.
  • $489.6 million over four years to support the public transport network in responding to changed travel patterns following the COVID-19 pandemic.
  • $318.2 million over four years to provide free public transport for children under 18, commencing 1 January 2026.
  • $157.5 million to support road maintenance activities, including pavement works, landscape repairs and resurfacing.
  • $122.8 million over four years to upgrade bus and ferry services across the state.
  • $121.2 million in continued funding for operational and maintenance costs for the Regional Rail Revival and V/Line.
  • $104.9 million over three years from the Commonwealth Government’s Housing Support Program – Priority Works, to support infrastructure works, social housing and housing supply across Victoria.
  • $98.7 million over four years to deliver additional train services across metropolitan and regional Victoria.

🏥 Department of Health

The Government has reaffirmed its commitment to expanding health care, with investments to open and redevelop nine hospitals across the state. Continued funding is also being provided for mental health beds in major hospitals and for virtual consultations to reduce unnecessary demand on ambulance and emergency services. Expenditure in the Department of Health in 2025–26 includes:

Key measures

  • $634.3 million over four years to open six new hospitals — including Footscray Hospital, Frankston Hospital and Maryborough and District Hospital — and to redevelop a further three hospitals.
  • $436.7 million over four years to expand the Victorian Virtual Emergency Department, increasing access to online consultations.
  • $308.9 million over four years to continue operations of mental health beds in major hospitals and establish 30 new Youth Prevention and Recovery Care beds in regional areas.
  • $96.3 million over four years for the National Blood Agreement, ensuring hospitals maintain blood supplies and access to specialised therapies.
  • $95.1 million over four years to boost Victoria’s health workforce, including increased placements for undergraduate nursing and midwifery students.
  • $84.2 million over two years to continue resourcing regional and rural ambulance services.
  • $58.4 million over two years to improve hospital patient flow and reduce ambulance ramping, including through additional beds and increased capacity in short stay units.

🎓 Department of Education

The Government has made education a key priority in the 2025–26 Budget, with a focus on capital works and workforce investment. It continues to advance its free kinder agenda through a substantial funding package over the forward estimates, supporting kindergarten access for three-year-olds alongside the establishment and operation of 50 government-owned childcare centres. Expenditure in the Department of Education in 2025–26 includes:

Key measures

  • $2 billion over four years to deliver the Best Start, Best Life Program, providing free kinder, pre-prep, kindergarten for three-year-olds, and establishing 50 government-owned childcare centres.
  • $1.14 billion over the forward estimates to deliver new schools, upgrades and maintenance — including $336.4 million to build two new schools and deliver additional infrastructure at four others, and $321.7 million to upgrade 35 schools across Victoria.
  • $319.8 million over four years to complete the rollout of Disability Inclusion reform in schools, supporting improved disability and inclusion practices.
  • $152.4 million over four years to increase Camps, Sports and Excursions Fund payments to $400 for eligible students.
  • $159 million to attract, retain and support teachers, including $68 million for workforce reforms providing 70,000 days of paid placement for student teachers and 200 scholarships for secondary teaching in specialist subjects.

🌱 Department of Energy, Environment and Climate Action

The Government continues to provide cost of living relief to vulnerable households through extensions to the Power Saving Bonus and appliance electrification rebate programs. It will also advance renewable gas initiatives, plan for Victoria’s offshore wind sector, and strengthen the Environmental Protection Authority (EPA) through increases to the Municipal and Industrial Waste Levy. Expenditure in the Department of Energy, Environment and Climate Action in 2025–26 includes:

Key measures

  • $152 million over the forward estimates to support the Department’s core energy functions, ensuring safety, reliability and affordability during the energy transition, partially funded by the Sustainability Fund.
  • $94.8 million over four years to strengthen the EPA, funded through the Municipal and Industrial Waste Levy.
  • $50.6 million in 2025–26 to extend the Power Saving Bonus — a $100 energy bill reduction program for concession card holders.
  • $29.7 million to extend the Solar Victoria hot water rebate program, enabling households to install electric heat pumps and solar hot water systems.
  • $18.9 million over the forward estimates to implement water reforms in the Murray–Darling Basin, with funding provided by the Commonwealth.
  • $13.2 million over two years to progress planning for the delivery of Victoria’s first 2 gigawatts of offshore wind energy.
  • $1.85 million over two years to develop a renewable gas scheme to assist in securing renewable gas volumes.

    🛠️ Department of Jobs, Skills, Industry and Regions

    The Government continues to invest in Victoria’s creative agencies and cultural institutions, fund sporting excellence and infrastructure programs, and support higher education and workforce development. Expenditure in the Department of Jobs, Skills, Industry and Regions in 2025–26 includes:

    Key measures

    • $475.3 million over five years to support operations, deliver programs and undertake long-term strategic initiatives for creative agencies, including Arts Centre Melbourne, Museums Victoria, the National Gallery of Victoria and others.
    • $171.3 million over two years to meet expected demand for Victoria’s Free TAFE and training services.
    • $150 million over four years to establish the Victorian Investment Fund, including a dedicated regional stream, providing support to domestic and international investors to secure investment that creates jobs and drives innovation.
    • $121 million over four years to the TAFE Services Fund to support the TAFE Network in meeting Victoria’s current and future skills needs. Funding also supports early identification of students at risk of non-completion.
    • $43.8 million over four years to improve VET student completions and employment outcomes, including through literacy and numeracy programs and pre-accredited digital literacy and employability training delivered by Learn Local providers.
    • $27.5 million over three years to address recovery needs following the recent Western Victoria bushfires.
    • $23.3 million over three years to improve access to community sports infrastructure and basketball hubs, including the Get Active Kids Voucher Program, Reclink Australia’s ActiVIC, and Future Active programs.

    ⚖️ Department of Justice and Community Safety

    The Government is responding to community calls for stronger action on crime through a headline investment in a new Community Safety Package. It is also continuing to invest in road safety initiatives and has announced the establishment of a dedicated liquor and tobacco regulator. Expenditure in the Department of Justice and Community Safety in 2025–26 includes:

    Key measures

    • $759.2 million over three years from 2024–25 to deliver the Community Safety Package, supporting new bail laws and broader safety reforms, a machete disposal scheme, and a grants program for Aboriginal remandees exiting custody.
    • $284.2 million over the forward estimates from 2025–26 for the ongoing operation of the Victims of Crime Financial Assistance Scheme.
    • $128.2 million over five years from 2024–25 to support the Road Safety Action Plan, including the delivery of safety infrastructure at high-risk rural intersections.
    • $95.6 million over five years from 2024–25 to support the Youth Justice system, including the continuation of culturally appropriate intervention and diversion programs.
    • $64.8 million over five years from 2024–25 to establish and operate a dedicated liquor and tobacco regulator.
    • $60.7 million over five years from 2024–25 to maintain Victoria’s road safety camera network and support expanded enforcement capabilities.
    • $56.2 million over five years from 2024–25 to administer road safety fines, including the transition to an online-based system.

    🏠 Department of Families, Fairness and Housing

    The Government continues to invest in child protection and family services, prioritising support and early intervention for victim survivors. It has also taken steps to address homelessness through continued funding for critical services. Expenditure in the Department of Families, Fairness and Housing in 2025–26 includes:

    Key measures

    • $198.4 million to manage and settle compensation claims related to historical child abuse suffered by former wards of the State while in care.
    • $167.5 million over two years from 2025–26 for Strong Families, Safe Children to assist Family Services in delivering early interventions that help restore and stabilise families.
    • $90.2 million over the forward estimates from 2025–26 to improve outcomes for children and young people through training for permanent carers and the maintenance of residential care facilities.
    • $79.8 million over the forward estimates from 2025–26 to support Victoria’s response to family violence by extending primary prevention leadership through Respect Victoria.
    • $61.2 million over two years from 2025–26 to continue critical services addressing homelessness and broader community needs.
    • $26.5 million over two years from 2025–26 to support Victoria’s response to sexual violence through frontline services and delivery of Sexually Abusive Behaviour Treatment Services.

    🖥️ Department of Government Services

    The Government continues to prioritise digital service delivery, with major funding committed to Service Victoria, cyber security initiatives and public data access. Funding also continues for identity verification and worker screening services, including birth registrations, Working with Children Checks and NDIS screening. Expenditure in the Department of Government Services in 2025–26 includes:

    Key measures

    • $105.8 million over the forward estimates to continue funding Service Victoria, which enables individuals to access government services online. This investment also supports the development of a single digital platform to host all Victorian Government information.
    • $37.5 million over three years to continue Victoria’s program of cyber security initiatives and the Open Data program.
    • $23.5 million in 2025–26 to maintain identity and worker screening services.
    • $6 million over three years to continue administration of the Professional Engineers Registration Scheme, ensuring registered engineers are appropriately qualified and experienced.
    • $4 million over the forward estimates to support Mortgage Stress Victoria.

    Subscribe to the GRACosway mailing list to get regular political and policy updates.

    Subscribe to the GRACosway mailing list to get regular political and policy updates.

    Permissions

    GRACosway will use the information you provide on this form to send you political and policy analysis and briefings via email. Please mark the box below if you would like to receive updates from us.