Victoria’s Budget 2025/26 Overview

Treasurer Jaclyn Symes delivered the Victorian Budget 2025/26 on 20 May 2025, achieving a $600 million operating surplus, the first since the COVID-19 pandemic.

The budget delivers targeted cost-of-living relief and funds key sectors like healthcare and infrastructure. However, it falls short in addressing Victoria’s escalating debt, providing meaningful tax relief for businesses, or introducing robust incentives to boost private investment. While short-term relief is prioritised, the high cost of conducting business and long-term fiscal sustainability remain significant concerns for our clients.

The fire services levy, a property-based charge funding Victoria’s fire and emergency services, remains a point of contention. Supporters argue it ensures stable funding for critical services, while critics highlight its impact on property owners, particularly in regional areas, and question its fairness compared to alternative funding models.

KEY BUDGET MEASURES

Cost-of-Living

• $2.3 billion package: $318 million for free youth public transport, saving $755/child annually; $167.3 million for school costs
• Energy rebates: $50 million Power Saving Bonus ($100 for concession holders); $30 million for energy upgrades, saving up to $400/household

Health & Justice

• $11.1 billion: Funds hospitals, upgrades, and pharmacist consultations
• $1.6 billion for justice: $727 million for bail reforms; $176 million for rehabilitation

Education

• $2 billion: Expands free kinder, saving $2,600/child annually
• $1.5 billion: Funds new school facilities, no tax impact

Infrastructure

• $976 million: Improves roads, may lower business logistics costs
• Suburban Rail Loop: $9 billion contract, increases public debt

Housing & Economics

• $407 million: Boosts housing supply, may affect property markets
• Fiscal projections: $167.6 billion debt in 2025/26, $194 billion by 2028/29; $7.6 billion interest in 2025/26; $1.9 billion average surplus to 2027/28

Public Sector

• $3.3 billion savings: Independent review to find efficiencies, excludes frontline roles
• Business support: $150 million Investment Fund; $34.9 million for exports, aids business growth

View the Victorian Government Budget Guide

To discuss how this State Budget may impact your circumstances, contact your PPT advisor at (03) 5331 3711 or ppt@ppt.com.au.