The Ballot Box Budget
Victorian Treasurer Jaclyn Symes handed down her second Budget this afternoon, and the Labor Government’s final before the November 2026 Victorian state election. Symes’ hotly anticipated Budget comes just weeks after a major Cabinet reshuffle, months before a state election, and against the backdrop of global uncertainty. The Treasurer has framed the Budget as being focused on making Victorians’ lives easier, safer and more affordable. Key announcements include:
1.04 billion to fix potholes and roads.
$759 million for car registration rebates.
$433 million for free and discounted public transport. $674 million for new trains.
$860 million to support 7,000 more social housing properties.
$512 million to address youth crime.
$392 million for child protection measures.
$97 million for housing and building reforms.
In her address to Parliament, the Treasurer delivered an optimistic but cautious outlook for Victoria’s economy, which is forecast to grow by 1.5 per cent in 2026–27 and by two per cent in 2027–28. While economic growth is continuing and the labour market remains strong, the Budget notes that inflationary pressures, including those exacerbated by the war in the Middle East, are contributing to ongoing uncertainty.
Victorians will head to the polls in November to consider Labor’s case for an historic fourth term in government. Against this backdrop, the Budget walks a fine line. On the one hand, the Victorian Government has sought to demonstrate fiscal restraint and discipline, while still delivering practical measures to ease cost of living relief.
The 2026–27 Victorian Budget shows that payroll tax, land tax and stamp duty continue to deliver significant revenue to the Allan Government. As the Government progresses public service efficiencies following the Independent Review of Victoria’s Public Service, the Budget includes savings of around $600 million over the forward estimates attributable to this reform program.
The Treasurer highlighted that the Government achieved a $727 million operating surplus in 2025–26 and is projecting a $1 billion surplus in 2026–27, $900 million lower than forecast in the 2025–26 Budget Update. Across the forward estimates, operating surpluses of $1.9 billion are projected. When capital expenditure is accounted for, Victoria is forecast to have a $7.7 billion cash deficit, rising to $8 billion over the forward estimates. The Budget projects net debt to reach $175.6 billion in 2026–27, rising to $199.3 billion by 2029–30. As a share of Gross State Product, net debt is forecast to be 24.9 per cent in 2026–27, easing slightly to 24.4 per cent by 2029–30.
GRACosway portfolio summaries
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- Department of Treasury and Finance
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