2026-27 Victorian Budget Highlights

Victorian Treasurer Jaclyn Symes has handed down the 2026–27 Victorian Budget, delivering a return to surplus while continuing to prioritise cost-of-living support and investment in essential services.

Key fiscal and economic forecasts include the following:

	2025-26 Forecast	2026-27 Forecast
Net surplus/deficit from transactions	$0.7b	$1.0b
Infrastructure investment	$21.4b	$19.4b
Net debt	$165.3b	$175.6b
Unemployment rate	4.75%	4.75%
Melbourne CPI	3.50%	3.50%
Vic Wage price index	3.25%	3.25%
Population growth	1.7%	1.7%

Key areas of focus from the budget are listed below:

Cost of living

$99 million for food relief, financial support and homelessness services.
$566 million in concessions for energy, rates, water and sewerage, saving eligible households an average of around $629
$2.7 million to expand financial counselling services
$1.1 million for the Energy Assistance Program to support households with bill relief and better energy deals
$45 million in targeted community support, including:
- $26 million for additional emergency accommodation and outreach support for rough sleepers
- $15 million for long-term supportive housing across five sites
- $6.1 million to support vulnerable renters to maintain tenancies.
Midday Power Saver to provide 3 hours of free electricity during the day for eligible households
Estimated savings of up to $300 per year, or up to $1,070 for households with solar and battery systems.

Transport

$759 million to deliver a 20% registration rebate for light vehicles, saving up to $186 for one vehicle or $372 for two
$278 million to halve public transport fares across trains, trams and buses until 1 January 2027
Free public transport for under 18s continues across the Victorian network
Fuel price reforms introduced, including a daily price cap and mandatory reporting to help motorists find the cheapest fuel
$5 million to support the Fair Fuel Plan, including monitoring fuel prices and maintaining the Servo Saver app.

Families with kids

$28 million for the Affordable School Uniforms Program, saving families an average of $93 per application
$24 million for outside-of-school-hours care for young Victorians with disability
$16 million to expand the Glasses for Kids program, providing free vision screening and glasses
$15 million for free zoo entry for under 16s on weekends, public holidays and school holidays
$14 million for School Breakfast Clubs to provide free, healthy meals for students in need
$11 million for approximately 55,000 additional Get Active Kids Vouchers
$7.4 million for Kinder Kits to support early learning at home.

Business, jobs and the economy

$12 million to increase opportunities for Victorian businesses through government procurement
$3.3 million for Skills Solutions Partnerships to pilot training in priority areas including AI and technology adoption
$1.6 million to support the local beverage sector through the Drink Victorian program
$1.2 million for the Small Business Activation Fund, including grants between $5,000 and $100,000 to local business organisations and councils
$400,000 to improve dispute resolution services for small businesses.

Investment in emerging industries

$3 million to support development of Victoria’s mRNA industry
$2.1 million to support the Critical Minerals Roadmap and resource development
$2.4 million to strengthen international trade relationships and attract investment
$14 million AI Investment Package, including $8.2 million for Digital Jobs, AI Career Conversion Support.

Skills and training

$459 million investment in skills and training
$244 million to deliver government-subsidised training, including Free TAFE places
$87 million for the TAFE Services Fund to improve completion rates and upgrade facilities
$6.4 million to strengthen the VET workforce in clean energy, manufacturing and the construction sectors
$5.8 million to improve safety and support for apprentices and trainees
$5.4 million to establish a VET Educator Academy in partnership with the Commonwealth.

Regional Victoria

Regional education

$112 million to support education across regional Victoria
$95 million to upgrade 9 regional schools
$6.3 million to continue the VET transport fund for regional students
$5 million to deliver hydrogen and battery electric vehicle training at Wodonga TAFE
$2.7 million to pilot blended learning for VCE students
$1.2 million for youth education support officers in regional areas
$1.2 million to support the Shepparton Education Plan
$792,000 to continue the Skilling the Bay program
$355,000 to support the Education Benalla program.

Regional healthcare

$75 million for the Regional Health Infrastructure Fund
$10 million to support Hospital in the Home services
$7.1 million to operate a new PET scanner at Goulburn Valley Health
$4.2 million for group-based parenting supports in mental health services
$1.1 million to support chronic disease prevention programs
$985,000 to continue regional mental health support services.

Regional transport

$481 million to improve regional transport connections, including:
- $318 million for upgrades to improve reliability on regional passenger rail
- $127 million to improve freight rail infrastructure
- $30 million for additional services on the Shepparton line
- $3.9 million to continue Portarlington Ferry services
- $2 million for safety improvements at regional train stations
$73 million for regional road upgrades.

Regional development

$23 million for the Future Regions initiative
$909,000 to support the Office of the Cross Border Commissioner
$800,000 to support tourism in the High Country
$450,000 for community education and employment programs
$279,000 to continue the Rural Women’s Network Leadership and Mentoring Program.

Stronger regions

$13 million to support the Nyaal Banyul Geelong Convention and Event Centre
$4.3 million to maintain state-owned cultural facilities
$4 million for the Rochester Aquatic Facility
$2 million to continue the QHub program
$1.5 million for the Regional Business Events Program
$1.2 million to support access to regional creative venues
$600,000 for upgrades at the Regional Community Vet Clinic in Castlemaine
$480,000 for Basketball High Performance Hubs
$150,000 to support the Country Women’s Association of Victoria.

Regional tourism and the environment

$43 million to renew infrastructure in the River Murray catchment
$7.9 million to restore the Cape Otway Lightstation and upgrade the Great Ocean Road precinct
$5 million to continue fish stocking programs
$1.5 million for surf life saving club facilities
$10 million to continue the Future Forests program.

Agriculture and farmers

$84 million to support farmers and agricultural industries including:
- $62 million for bushfire recovery support for primary producers
$5.9 million for farmer health, safety and wellbeing programs
$5 million to improve energy efficiency on farms
$2.2 million to extend the Fox Bounty program
$7.6 million for biosecurity initiatives.

Housing and energy affordability

$860 million investment into the Social Housing Growth Fund to deliver more than 7,000 additional social housing homes
$207 million to support housing affordability and reform
$97 million to continue housing reform and improve confidence in the building industry
$37 million to unlock land and improve planning processes, including:
- $16 million to support new housing in greenfield areas
- $11 million to update planning legislation and systems
- $9.8 million to fast-track significant housing projects.

Home buyers and renters

Continued $10,000 First Home Owner Grants and stamp duty concessions for eligible buyers
Extension of off-the-plan concessions to support affordability and housing supply
Reforms to improve transparency in the property market, including requirements to publish reserve and sale prices
Changes to building and pest inspection requirements, shifting costs from buyers to sellers.

Energy affordability and transition

$90 million investment to support the transition to renewable energy
$28 million to support installation of energy-efficient hot water systems, with rebates available
$10 million to support energy efficiency upgrades in community housing
$2 million to support community education on energy and climate action
$1.3 million to streamline environmental approvals for renewable energy projects
$10 million to train plumbers and gas fitters in renewable energy skills
$5 million to extend Solar Victoria training programs.

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.