The Victorian government has unveiled its 2026-27 state budget, emphasizing school and road infrastructure, technological upgrades, and cost-of-living relief. Measures include free public transport until the end of May, followed by half-price fares until 2027. The budget aims to make life 'easier, safer, and more affordable' amid rising inflation linked to global tensions.
Winners
Motorists
The government allocates $750 million for a 20% rebate on vehicle registration from 1 June to 31 July, saving drivers $186 each. An additional $1.04 billion is earmarked for road repairs and resurfacing, with 70% directed to regional Victoria. The 'Servo Saver' feature on the Service Victoria app will allow users to compare fuel prices.
Public Transport Users
Free public transport is extended until the end of May, costing $432 million, followed by half-price fares from 1 June to the end of 2026. Investments include $100 million for bus routes, $76.35 million for Melton line electrification design, $14.8 million for Wyndham Vale line capacity, and $76 million for tram upgrades with accessible stops.
Melbourne's Western Suburbs
The budget addresses neglect concerns with $249 million for maternity services, $95 million for Werribee Mercy hospital ED upgrade, $2 million for Melton hospital, and $7 million for police prosecutions at Wyndham law courts. Train line upgrades to Melton and Wyndham Vale are also included.
Families with Children
Education spending totals $19 billion, including $5.5 billion in new investment. Programs include $16 million for free eye tests and glasses for children, $15 million for free zoo entry for under-16s on weekends and holidays, and $11 million for 55,000 Get Active Kids vouchers. Funds are allocated for 27 new kindergartens, five early learning centres, and $441 million for school construction. The Thriving Kids program receives $2.4 billion over five years for NDIS children with autism.
The Lottery Corporation
The ASX-listed operator receives a 40-year licence extension to 2068. Gambling tax revenue is expected to grow 0.4% annually, with lottery sales offsetting poker machine declines.
Tech Companies
The government supports data centres with $5.5 million in 2026-27 to attract private investment and $3.2 million for a strategy team on energy needs. Cybersecurity receives $154 million, including $37 million for healthcare data protection. Police information systems get $38 million for integration with a national firearms register.
Losers
Future Generations
Despite a $727 million operating surplus in 2025-26, state debt is forecast to rise from $165.3 billion in June 2026 to $199.3 billion by 2029-30. Interest payments will reach $11.82 billion annually, or $32 million per day, with no significant debt reduction planned.
Young People on the Wrong Side of the Law
The budget allocates $397 million for stricter bail laws and $117.5 million for County court hearings for young offenders, compared to $81 million for youth intervention programs.
Poker Machine Venues
Gambling tax revenue from electronic gaming machines is expected to decline as harm minimization measures take effect in hotels and clubs.
Airport Rail Users
The Sunshine Station Superhub, initially part of the Melbourne Airport Rail project, is not expected until 2030. The airport rail line's completion date and remaining expenditure remain unconfirmed.
