_Victoria State Budget and Planning Related Implications

The Victoria State 2024-25 budget was handed down by the State Treasurer on Tuesday 7May 2024.  The annual budget, together with the federal budget due next week, is a significant socio-economic blueprint for expectations in the next twelve months in particular but with possible implications over the longer term. 

The 2024-25 Victoria State budget addresses the Victorian Government view on State economic needs and strategic priorities.  It proposes specific matters affecting planning and development in that State. 

Some of the more significant aspects of the 2024-25 Victoria State budget include:

• a forecast continuing growth in State debt at least over the next three years, to nearly $188 billion – to add some context, the equivalent State debt in 2016-17 was less than $16 billion;
• a reduction in spending on State infrastructure projects such as a further four years delay in the provision of the Melbourne Airport rail link; the abandonment of the previously announced new hospital in Arden (North Melbourne); a delay of at least six years to the Upfield rail line level crossing removal; the delay or abandonment of previously announced new community hospitals; the construction of 35 new mental health and wellbeing clinics;
• but new projects in education (sixteen new State schools, predominantly in new growth areas);
• and new health projects (hospital upgrades at the Austin, Northern and Monash Medical);
• a one year increase in the funds allocated under the existing Victorian Homebuyer Fund, to assist homebuyers by offering that funding for shared equity (home buyer and government) new home purchases;
• further funding for renewable energy uptake with continuing assistance with household installation of electric heat pumps, solar hot water systems and solar batteries. 

The Federal budget next week will provide a further impact on various State planning projects, with ‘leaked’ comments already suggesting some new planning and development infrastructure funding – but we wait to see the detail.