2024-25 Victorian Budget Highlights

The newly released Victorian Government budget reveals a focus on cost of living, education and healthcare. Here are some of the highlights from the budget:

Rural and regional Victoria

$2 billion regional package for housing, sporting infrastructure and economic development, including major upgrades for Bendigo Stadium, Bendigo Showgrounds and Bendigo Bowls and Croquet clubs in the Bendigo area.
$60.5 million over four years for the regional road upgrade program, including $28.4 million of Federal funding.
Bendigo has also been included in a $2 million package to help make sure food relief organisations can continue responding to local needs.
$2.2 million to continue joint land management of the Barmah National Park in partnership with the Yorta Yorta people.

Business

$40 million for LaunchVic to improve capabilities of future innovators, creators and entrepreneurs – with Victoria home to more than 3,400 startups.
$9.4 million for the Business Events Fund to attract more high-profile international business events to Victoria, and for implementation and enforcement of the Major Events Act 2009.
$2.3 million for small businesses to access business advisory services and capability building.

These investments are to be further supported by the Economic Growth Statement, to be released later this year.

From 1 July 2024, thousands of Victorian businesses will start saving from tax reforms announced in last year’s Budget:

$266 million over four years with the abolition of stamp duty for commercial and industrial properties
Gradual abolishment of business insurance duty over a 10 year period, saving businesses an estimated $516 million over the next four years
Lifting the payroll tax-free threshold from $700,000 to $900,000 from 1 July 2024, and then to $1 million from 1 July 2025 – around 6,000 small businesses will stop paying payroll tax altogether, and a further 22,000 will pay less
The Sick Pay Guarantee pilot will conclude on 30 June 2024.

Education workers

$139 million to get more teachers into schools.
$63 million for the mental health and wellbeing of school staff through early response and education programs.
$21 million to enable 100 primary school teachers to do 20 days of intensive training to strengthen their mathematical knowledge and coaching skills.
$16 million to roll out specialist training to help teachers manage student behaviour.
$10 million to continue funding for the Victorian Academy of Teaching and Leadership to deliver more advanced professional learning for teachers.

Workforce and training

$394 million to boost access to vocational training and Free TAFE, which now offers more than 80 courses.
$113 million for TAFEs, including funding to provide support services, training delivery, and help students get the most out of their training.
$32 million to support workers to quickly retrain or upskill with subsidised training and short courses.
$18 million for Jobs, Skills and Pathways Coordinators to provide dedicated support to vocational students in schools.
$16 million to deliver a new mental health graduate program.
$11 million to continue support for apprentices, trainees and their employers to meet Victoria’s workforce priorities.
$3.8 million to continue the Fair Jobs Code, which ensures suppliers and businesses benefiting from large government contracts treat their workers fairly.

Families – cost of living

$287 million to deliver $400 School Saving Bonus payment for families with children at government schools, and eligible families at non-government schools, to help with uniforms, camps, excursions and sporting events. To be made available prior to Term 1, 2025.
$6.8 million to expand the Glasses for Kids program to reach a further 74,000 Prep to Grade 3 students at 473 government schools across the state, providing free screenings and glasses to eligible students.
$6 million to expand the Get Active Kids Vouchers program to provide vouchers worth up to $200 to help eligible families cover the cost of sports.
$38 million for electric heat pumps and solar hot water system installation. By switching to a heat pump or solar hot water system, the average household will save up to $400 on their electricity bills each and every year.
$6.1 million for eligible households to take up interest-free loans so that they can install solar battery storage systems in their homes.
$5.9 million to improve the Victorian Energy Upgrades program to assist Victorians switch to energy-efficient products and reduce emissions.
$3.4 million to continue to support Victorians who are struggling to pay their energy bills to navigate the retail energy market through the Energy Assistance Program.

Homes

Planning improvements and strategic housing placement to facilitate the construction of 800,000 new homes over the next decade in areas close to jobs, education, and transport.
$107 million to further Victoria’s housing agenda, including:
- Enhancing the Victorian Building Authority with increased enforcement capabilities, more regulatory officers for building inspections, and technology upgrades for better intelligence and enforcement
- Measures to increase access to domestic building insurance for Victorians engaging in building or renovating activities.
An additional $19 million to improve public housing maintenance and repair response times through a modern, user-friendly system.
Funding will promote modern construction methods like modular or prefabricated builds, providing more options for home construction in Victoria.
$700 million is dedicated to extending the Victorian Homebuyer Fund.
A further $5 million is allocated to support local councils in Melbourne’s outer suburbs to enhance local infrastructure, including libraries, playgrounds, and community spaces.

Transport

$233 million for the Metro Tunnel and West Gate Tunnel project, for recruiting and training drivers, timetabling, completing final testing, preparing customer information and education, and training a dedicated customer service team.
$752 million allocated to switch on the “Big Build”, funding the operation to expand the transport network and new stations. It also funds additional network improvements, including:
- $214 million to maintain the Digital Train Radio System and plan for future upgrades
- $133 million to support the regional rail network, including operating newly-delivered train stabling yards, stations and VLocity trains, and upgrading the 150‑year‑old historic rail tunnel between Geelong and South Geelong
- $104 million for works to keep rail freight moving across Victoria
- $30 million for improved bus travel and continuation of ferry services.

Emergency response

$25 million to support the State Control Centre.
$9.5 million to ensure Victorians and emergency service organisations have the most up-to-date emergency information, advice and warnings.
$9.1 million for Life Saving Victoria to continue its water safety program, including rescue helicopter, watercraft and drone services.
$6.9 million for Victorian State Emergency Service.
$51 million for fuel management, firefighting activities and bushfire prevention across the state.
$34 million for new fire trucks for the Country Fire Authority and Fire Rescue Victoria, including those with specialist aerial capabilities for built-up areas.
$20 million to maintain critical bushfire response infrastructure, including replacing and renewing machinery and upgrading fire access roads.

Energy transition

$18 million to plan for offshore wind generation projects.
$17 million to continue planning and designing a renewable energy terminal at the Port of Hastings, where the infrastructure for offshore wind farms can be assembled.
$10 million to improve spatial risk mapping and guidance for future renewable energy projects, with an additional $7.3 million to make sure environmental assessments are finished on time.
$12 million will fund VicGrid to coordinate the planning and development of the state’s transmission infrastructure.

Tourism

$33 million to continue marketing Victoria as a leading tourism and events destination.
$11 million to support the work of the Great Outdoors Taskforce, which will work on developing future uses of state forests.
$4.5 million for the Victorian Festivals Fund.
$3.3 million to support Victoria’s regional tourism boards and visitor economy partnerships, backing their work to grow local tourism and local jobs.

You can read about the Budget in more detail on the Budget website, and if you have any questions on how the changes may affect you or your business, please contact your accountant.