The Victorian Budget Overview 2026 – 2027 with some key local highlights

Labor is about making life easier, safer, and more affordable. In times of pressure, we’ll always find more ways to support Victorian families.

Victorians are facing new cost of living challenges as war in the Middle East drives up fuel prices.

That’s why we’re delivering real help, right now with the cost of living.

• Free public transport for two months, and half-price for the rest of the year
• Reducing car rego by 20 per cent this year
• Cutting the fuel excise with the Federal Government

These are temporary measures that we have budgeted for and can afford.

Budget 2026/27 plans for the future, by investing in health, education and community safety.

• We’re delivering better healthcare with more hospitals and more nurses, and a new fast-track for kids to get access to specialists and surgery, sooner.
• We’re investing in our kids’ future by continuing Free Kinder, expanding Free TAFE and building more schools across Victoria.
• We’re keeping Victorians safe with more resources for Victoria Police, more funding for the Violence Reduction Unit, and Adult Time for Violent Crime.

Budget 2026/27 includes some key highlights for Southbank

South Melbourne Primary School will receive a share of $419.6 million for new schools’ construction to deliver a new campus opening in 2029.

Port Philip SES unit will receive a new VICSES facility

Route 236 Uplift, with an expanded weekday and Saturday span of hours and new Sunday services

Melbourne Arts Precinct Transformation will receive funding to support delivery, and this project includes 18,000 square metres of beautiful gardens.

Hamer Hall will receive infrastructure enhancements, including new acoustic reflectors to support more music events

We can afford to do this, because we’ve worked hard to create jobs and drive economic growth – and it’s working.

• Victoria’s economy has grown more than any other state in the past decade
• Over half a million Victorian jobs have been created in the past five years
• Business investment is up 44 per cent with 123,000 more businesses than in 2020

We have delivered a budget surplus this year, and we will again next year

We’re reducing the debt as a share of the economy while continuing to invest in the things Victorians need – like schools and hospitals, and continuing to grow the economy.

There’s always more to do. And Labor will always do what we can do make life easier, safer and more affordable for all Victorians. •