2026/27 State Budget Re-Cap

The 2026/27 Victorian Budget has been delivered.

Under the title of Easier. Safer. More affordable, the Victorian Government has leaned into budget initiatives aimed at easing cost of living pressures and promoting health and safety.

Coming off the first operating surplus in seven years, there are net surpluses forecast over the next 5 years (averaging $1.7b per year, reaching $2B by FY30). 

Debt as a share of GSP will decrease from next year, decreasing from 24.7 in FY27 to 24.4 by FY30. Despite this decrease, net debt at will continue to grow, increasing to $165.3b in FY27 and up to $199.3b by FY30.

Over that period, Government infrastructure investment will continue to reduce, down from the forecast $21.4B in FY27 to $15.3B by FY30. While this is in line with the Government’s COVID debt recovery plan, it raises questions about Geelong’s ability to tap into a reducing infrastructure spend; something that is critical in attracting federal funding.

What’s in it for Geelong?

Healthcare

• Operational funding ($20.3M) for the Paediatric Emergency department at University Hospital Geelong. This is great for Geelong as it recognises the growth in the size of our community and that Government is continuing to support growth in health services. The Geelong community is looking forward to the opening of the new Barwon Women's and Children's currently under construction.

• Continuation of the operation of 9 mental health Hospital in the Home beds operated by Barwon Health.

• Funding provided for the transition of palliative care beds from the McKellar Centre to Anam Cara House.

Education

• There were a small number of Primary and Secondary school upgrades, program funding and future growth announced:

  • School upgrade at Surfside Primary School in Ocean Grove (larger capital works);

  • Drysdale Primary School will have access to the Capital Works Fund (small scale capital upgrades);

  • The Farm My School program at Bellarine Secondary College; and

  • Geelong was identified as a priority area for land acquisition for future school sites.

• Continuation of funding for high-quality career education and work-based learning for secondary students, including Skilling the Bay through the Gordon.

• While there was more good news for The Gordon with continuation of free TAFE, it was disappointing to see no operational funding for the Disability CoE at the Gordon, despite some other Centres of Excellence in the TAFE network receiving funding.

Transport and Planning

• Public transport users across Geelong will benefit from the continuation of half price PT through end of 2026.

• Electrification of the Melton line is a significant investment, that will have some positive knock-on effects to improving user experience on the Geelong line. This does, however, highlight the need for further investment into electrification of the services through to Wyndam Vale; particularly with the introduction of the West Tarneit station onto the Geelong line.

• A range of other smaller road, rail and bus network upgrades were also announced including:

  • Safety improvements at Little River station;

  • A new bus route connecting Drysdale and Ocean Grove;

• Re-coordination of buses along the Warrnambool and Geelong lines to align to new rail timetables to be delivered with the opening of the new West Tarneit Station;

• Bus route realignment for Lara West route 12;

  • Barwon Heads Rd pedestrian crossing at Connewarre; and

  • Pedestrian safety improvement on Corio-Waurn Ponds Rd

• $3.9m has been allocated for the continuation of passenger services for the Portarlington Ferry.

• From a planning perspective, continuation of funding for the Geelong Authority to support housing delivery

• $79.4m is going towards the Victorian Renewable Energy Terminal at the Port of Hastings, part of a $124.5m commitment over three years. This is a timely reminder that the announcement of a multi-port strategy by the Government will unlock $1b in private sector investment at the Geelong Renewables Terminal at GeelongPort.

Energy, Environment and Climate Action

• Funding is provided to the Great Ocean Road Coast and Parks Authority for critical asset renewal works, including the Cape Otway lightstation.

Jobs, skills, industry and regions

• With its opening just weeks away, it was pleasing to see funding again provided to operationalise and attract events to Nyaal Banyul.

• Funding is also provided to support the Kardinia Park Stadium Trust to continue community access to sporting facilities. This is critical in seeing this vital community asset maximised, however there is more to be done in leveraging the Stadium through a broader redevelopment of the entire Kardinia Park precinct.

Justice and community safety

• Completion of new Surf Lifesaving facilities at Bancoora and Point Lonsdale.

Other

There was more support announced for food relief, and Geelong Foodshare will again be supported in providing their vital service.

Finally, it was pleasing to see more funding committed to the Wathaurong Dreaming Project. After an initial $4.2m in FY26, further funding of $12.7m in FY27 and $13.7m in FY28 has been allocated to support the construction of a new, purpose-built facility for the Wathaurong Aboriginal Cooperative in North Geelong.

What’s next?

In delivering the budget, Premier Jacinta Allan said “budgets are about choices”.

The choices we make today will affect the future of our city. The choices made through this year’s election campaign will also affect the future of our city.

This is why the Committee will continue its staunch advocacy for our region. As the voice of Future Geelong, we will continue to work with the Government, and all sides of politics, in ensuring the choice for investing in growth is clear.

The choice is Geelong.