Victoria’s Treasurer Jaclyn Symes has unveiled her first Budget, putting cost of living, healthcare and transport at the forefront of the Allan Government’s agenda, funded by rising debt and swelling property taxes.
Debt will rise to $194 billion by 2028/29, but the new Treasurer hopes to claw back $3.3 billion over the next three years through public sector savings following a review by former senior Victorian public servant Helen Silver due in June.
Symes has shown political savvy through a $2.3 billion cost-of-living package, a new power saving bonus of $100 and free public transport for under 18s and on weekends for seniors.
Victoria has avoided new taxes, but there is no relief from land taxes on business and investment properties, and the State has baked in what it expects will be $10 billion in windfall gains as property prices soar on the back of interest rate cuts.
The costs of servicing the State debt has risen annually to $10.6 billion.
The Allan Government will also stick with its big-spending infrastructure program, remaining committed to the Suburban Rail Loop after letting out $9 billion in contracts (that are yet to be funded) a few days before the State Budget.
The question remains whether a lid has been put on the runaway growth of Victorian state debt, and whether any public concern ahead of an election in late 2026 can be sated by fresh cost-of-living outlays.
Notably, the Budget was delivered to the backdrop of a major protest on the steps of Parliament House over the doubling of its new $700 million fire services property levy that has angered rural firefighters and landowners, highlighting the political challenges ahead.
The next step will be with the credit rating agencies – whether they believe there is sufficient political will to avoid any new credit downgrade.
Replacing longtime Treasurer Tim Pallas last December, Jaclyn Symes inherited the mammoth task of turning around the State’s dire financial position. Today, Symes has announced a $600 million operating surplus for 2025-26 – Victoria’s first “back in the black” budget since the COVID-19 pandemic.
The Treasurer was eager to point out this had been done with no new taxes, but instead ‘responsible decisions’ about where every dollar goes. However, the surplus is significantly lower than the $1.5 billion originally forecast, and while Symes noted debt was down as a proportion of the economy, it is still forecast to reach almost $200 billion in the coming financial year.
In terms of where the money is coming from, both the Premier and the Treasurer spoke today to the independent review of the Victorian Public Service that will aim to save billions by stripping inefficiencies, duplications and non-priority programs. Deep in the budget papers state revenue is broken down – with the government expecting $41.7 billion revenue from taxation in 2025-26, and $857 million from fines, mostly speeding and redlight camera penalties.
Addressing stakeholders – including our team – in the annual budget lock up on Tuesday morning, Premier Allan started her speech with anecdotes of the sacrifices her parents made during her childhood in Bendigo. Allan noted a lot of families are having to make similar sacrifices at the moment and that when times were tough, ‘Victorians deserve a government that is on their side’.
This was the Premier’s segue to a ‘record’ $2.3 billion funding in cost-of-living support, including free public transport for kids, more power saving bonuses and rebates on solar, doubling support for foodbanks, and the continuation of free kinder and free TAFE programs.
Healthcare was also front and centre, with an $11.1 billion package for the sector, with the lion’s share ($10 billion) going to boosting hospitals across the state and support for the nine new and redeveloped hospitals set to open in the coming months. The remainder of the package will go towards Urgent Care Clinics (UCCs), paramedics, and mental health initiatives.
Transport infrastructure, now overseen by Minister Gabrielle Williams, has been somewhat of a sore point for the Allan Government due to the controversial Suburban Rail Loop (SRL) project. While the SRL was mostly absent from the 2025-26 budget, the Metro Tunnel project was named ‘the biggest transformation of our rail network’ in over 40 years. The Sunshine train station redevelopment also received $4 billion in preparation for the much-awaited Melbourne Airport Rail Link.
Reach out to our Victorian team if you would like to discuss the new Victorian Budget and what it means for you.
Feyi Akindoyeni, Founding Partner and Melbourne Office Head, SEC Newgate Communications – [email protected]
Nick Maher, Partner, SEC Newgate Communications – [email protected]
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