Victorian Treasurer Jaclyn Symes hands down the 2026-27 State Budget on 5 May. Photo: VIC Parliament YouTube Screenshot.
The Victorian Government has handed down its last budget before November’s state election, one it says will deliver a surplus of $1 billion this year and $2 billion in the forward estimates.
The Government says it has delivered a budget focused on Victorians’ priorities, with a growing economy, more jobs, and greater investments in health and education. It says it has kept the economy resilient over the past decade, and that it is now 15 per cent larger than in 2018-19.
But despite delivering a surplus, the budget does little to address the state’s growing debt which is estimated to grow to $194 billion by 2030.
The budget will see $1.6 billion in public hospital funding, with the Government also supporting the establishment of affordable Urgent Care Clinics, the Virtual ED and Chemist Care Now. An additional $109 million will also be invested in 45,000 more specialist paediatric appointments and 4000 additional planned surgeries for children.
There will also be $67.4 million to support hospital-level care at home, and an increase of $25 million in funding for Ambulance Victoria.
Cost-of-living relief will be provided through an extension of half-price public transport on trams and metro and V/Line trains and buses until the end of 2026, and an extension of the 20 per cent discount on car registration costs beyond 1 July.
Some $5.5 billion will be invested into education, including $295 million to upgrade 31 government schools, the Affordable School Uniforms program, an expansion of the Glasses for Kids program, and funding of School Breakfast Clubs.
An initial $250 million will be allocated for its planned $2.2 billion disability inclusion program to provide individualised disability support in government schools, while free kinder will also continue at a cost of $552 million, saving an estimated $2700 per child.
Victoria’s emergency services and justice system will receive more than $1 billion on 2026-27 allocations, including support for the Violence Reduction Unit which frees up frontline police by recruiting police reservists for administrative work.
For housing, Victoria will invest $860 million into a Social Housing Growth Fund designed to deliver more than 7000 social housing homes, and an extension to stamp duty concessions for buying off-the-plan units, townhouses and apartments until 21 April 2027.
Treasurer Jaclyn Symes said the Government is delivering real cost-of-living help right now and a surplus every year.
“This is a responsible Budget that is able to afford real cost-of-living relief for Victorians now,” she said.
“We are delivering the only operating surplus on the east coast – while growing faster than any other state over the decade.”
Minister for Economic Growth and Jobs Steve Dimopoulos said Victoria is growing faster than any other state, and 300,000 more Victorians are in jobs over the past three years.
“By targeting priority sectors and the industries of tomorrow like data centres, mRNA manufacturing facilities, and critical minerals, our economy continues to grow,” he said.
“We are setting up Victorians for the future – backing industries that will create jobs for the next generation of Victorians.”
But Victorian Liberal Leader Jess Wilson described the budget as one of higher debt, higher taxes, and higher interest repayments, and one that lacks any plan to grow the economy or provide meaningful support to Victorians.
“This budget fails the basic test,” she said. “It spends big, plans little, and leaves the next generation to pick up the bill.
“You can’t run a household like this, and you certainly can’t run a state. The enormous and growing interest bill is making life harder for every Victorian – we cannot continue on this path,” she added.
“Victoria needs a new approach to managing the books – one that is honest about the challenges we face and clear about how we will turn things around together.”
Victorian Nationals leader Danny O’Brien added, “The Allan Labor Government’s cuts to regional development and agriculture show that Labor continues to ignore the needs of regional Victorians.
“At the same time, Victorians are hit with a $6.87 billion bill for the emergency services tax – double what they used to pay under the Fire Services Property Levy.
“This is a bad Labor government which should tell the truth: every unfunded promise today is a tax hike or a service cut tomorrow,” he said.
“The only way regional Victorians can get their fair share is with The Nationals and Liberals elected to government this November.”
