Victoria's 2025-26 Budget: A Return to Surplus Amidst Fiscal Restraint
Treasurer Jaclyn Symes outlines a budget focused on essential services, healthcare, and infrastructure without introducing new taxes.
Victoria's government has unveiled its 2025-26 budget, marking a return to operating surplus for the first time since the onset of the COVID-19 pandemic.
This budget, introduced by the state’s first female treasurer, Jaclyn Symes, allocates almost a third of its total expenditures to healthcare and children's services while maintaining fiscal responsibility by not imposing new or increased taxes.
The projected operating surplus stands at $600 million, significantly lower than the initial forecast of $1.5 billion, although an increase to $1.9 billion is anticipated in the following financial year.
The state's net debt is projected to reach $155.5 billion by June 2025, with an expected rise to $194 billion over the next four years, leading to interest expenses of about $10.56 billion by 2028-29.
While the government’s taxation revenue is estimated to rise to $41.7 billion in 2025-26, with land tax contributing $7.6 billion, no new taxes have been announced, alleviating some concerns among taxpayers, particularly those in the agricultural sector.
Key investments in the budget include an allocation of $11.1 billion for healthcare, with $9.3 billion directed towards hospital funding and substantial amounts earmarked for mental health services and improving emergency response times.
This includes $643.3 million for the establishment and redevelopment of nine hospitals across metropolitan and regional Victoria.
The budget also invests $976 million in a "Better Roads Blitz" aimed at addressing road infrastructure issues, along with $727 million for the Metro Tunnel project, which involves the creation of five new underground stations.
In an effort to support families and children, the government will extend its Free Kinder program at a cost of $859 million, provide free weekend public transport for Seniors Card holders, and allocate $15 million for additional Get Active Kid vouchers to cover children's sports expenses.
Moreover, a significant investment of $1.5 billion is planned for new school constructions and upgrades.
Further measures include $1.6 billion to enhance bail laws, an investment of $727 million to augment capacities within prison and youth justice facilities, and initiatives to facilitate better access to public transport for children.
These financial commitments reflect a judicious approach to managing the budget while addressing essential services affected by cost-of-living pressures faced by many Victorians.
This budget, introduced by the state’s first female treasurer, Jaclyn Symes, allocates almost a third of its total expenditures to healthcare and children's services while maintaining fiscal responsibility by not imposing new or increased taxes.
The projected operating surplus stands at $600 million, significantly lower than the initial forecast of $1.5 billion, although an increase to $1.9 billion is anticipated in the following financial year.
The state's net debt is projected to reach $155.5 billion by June 2025, with an expected rise to $194 billion over the next four years, leading to interest expenses of about $10.56 billion by 2028-29.
While the government’s taxation revenue is estimated to rise to $41.7 billion in 2025-26, with land tax contributing $7.6 billion, no new taxes have been announced, alleviating some concerns among taxpayers, particularly those in the agricultural sector.
Key investments in the budget include an allocation of $11.1 billion for healthcare, with $9.3 billion directed towards hospital funding and substantial amounts earmarked for mental health services and improving emergency response times.
This includes $643.3 million for the establishment and redevelopment of nine hospitals across metropolitan and regional Victoria.
The budget also invests $976 million in a "Better Roads Blitz" aimed at addressing road infrastructure issues, along with $727 million for the Metro Tunnel project, which involves the creation of five new underground stations.
In an effort to support families and children, the government will extend its Free Kinder program at a cost of $859 million, provide free weekend public transport for Seniors Card holders, and allocate $15 million for additional Get Active Kid vouchers to cover children's sports expenses.
Moreover, a significant investment of $1.5 billion is planned for new school constructions and upgrades.
Further measures include $1.6 billion to enhance bail laws, an investment of $727 million to augment capacities within prison and youth justice facilities, and initiatives to facilitate better access to public transport for children.
These financial commitments reflect a judicious approach to managing the budget while addressing essential services affected by cost-of-living pressures faced by many Victorians.
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