Victorian budgets provide cost-of-living relief amid the surge in $200 billion in national debt

Families and vulnerable groups feel that the pressure on the cost of living has already soared debt in the deprived state budget.

In the Victorian Budget debut on Tuesday, titled “The Most Important Things,” Treasury Secretary Jaclyn Symes mined the national vault with a $2.3 billion cost-of-living package.

While Victoria’s state debt is expected to hit a record $200 billion by 2029, the budget issuance amounts to $71,000 per household.

Net debt forecasts are $194 billion by mid-2029, and by then, interest payments will increase to $29 million per day.

This will leave less money for critical services and infrastructure such as hospitals, roads and schools.

Swinburne finance expert Jason Tian said interest expenses have about 18% of state tax revenue, effectively swallowing up all stamp duty.

Ms. Symes will travel to the U.S. to meet with credit rating agencies in the coming weeks, calling on the state to demonstrate “financial discipline.”

The state received $3.7 billion in GST revenue from the Commonwealth Grants Commission for 2025/26, $1.5 billion higher than the forecast.

Ms Sims said the government decided to provide a smaller forecasted operating surplus in the next fiscal year to fund more cost-of-living measures and service delivery, including a record $31 billion in health.

The budget does not include the exact amount of work losses caused by a review led by Helen Silver of Victoria Public Services.

However, it saved $3.3 billion from the stop and redesign program, reducing duplication and reducing about 1,200 full-time equivalent positions.

“Redundancy will come, but they won’t be as high as the final number,” Ms. Sems said.

More savings will be saved after leaving Ms. Silver’s final report to the government in June.

Ms. Sems said: “What I found in Helen’s original work was that Victoria had over 500 entities and 3,400 public boards and committees.”

“You can’t tell me there is no fat there.”

Infrastructure spending is expected to slide over the next four years, but the total amount of new projects is as high as $8.1 billion to $213 billion.

The estimated cost of the suburban rail cycle east of Cheltenham to Box Hill remains the same, reaching $30 billion to $34.5 billion.

Ms. Symes insists on her taxes or increased taxes, although planning emergency services taxes for firefighters and farmers will increase by $1.8 billion per year by 2026/27.

What is your budget?

Another round of power bonuses will be launched in August for $50 million, but limited to $100 discounts for franchise card holders.

Homeowners will distribute an additional 27,000 discounts to install electric heat pumps and solar water and solar water heating systems, and allocate $18 million so that pharmacists don’t have to see a doctor to treat more Victorians.

The package includes $1.3 billion to help schools’ families and children, as well as Kinder and TAFE students, including moving ahead ahead of schedule, the state transitions to free Kinder.

This large item – free public transportation for children under 18 years old, unveiled by budget day for seniors over 60 from January 1.

Prime Minister Jacinta Allan has called for millennials to be brought into her life war, but there is no fresh housing to help over $61 million to reduce stamp duty on unplanned apartments, units and townhouses for another 12 months.

Ms. Symes described the budget as “responsible” and fulfilled the government’s fiscal plan and provided real help at the cost of living.

She will tell the council: “This is something you can feel – at the kitchen table, at the school gate, at the railway station.”

Key Points of Victorian Budget 2025/26

* $2.3 billion in cost-of-living relief

* $3.3 billion will be cut from public services, with 1,200 full-time equivalent positions expected to be lost, but details of the cuts and changes are not known yet

* Net operating surplus in 2025/26 was $600 million, but net debt reached $194 billion in mid-2029 as interest payments increased to $29 million per day

*The government says health and well-being account for one-third of expenditure

Key cost of living measures

*New $100 Save Bonus for Families with Chartered Card Holders, costing $50M

* Camp, sports and tour funds for students living with charter holders will jump to $400 per child to $152.3 million

* An additional 65,000 get active kid coupons for families to spend on school uniforms, fees and equipment for each child in 2026, for $15 million

* Rebates for electric heat pumps and solar water heater systems cost $30 million

* $18 million for food relief charities and support organizations

*Camping fee will stay for another two years, costing $10.5 million

* For weekends under 16, you can continue to visit the zoo for free

Key health expenditures:

*Record $31B Health Fund

*The additional $11.1 billion includes $9.3 billion in hospitals and $497 million in mental health

* $437 million is triple the capacity to go to the Victorian virtual emergency department, which provides free consultations to doctors and nurses

* $167 million to improve ambulance response time, including recruiting more zero Victoria staff

* $18 million permanently allows pharmacists to provide certain medications that do not require doctor scripts (including birth control pills) and expand their treatment conditions

Key Education Expenditures:

* $4.9 billion in education discovery, including $1.5 billion in new and existing schools upgrades

* $859 million to continue to offer free Kinder program for 160,000 children

* An additional $133 million is spent on core topics, including an additional $47 million to improve mathematics education, provide arithmetic checks for first-grade students, and improve skills for math teachers

*$27 million pathway coordinator for Highway High School

* $319.8 million is used to launch inclusive reforms for people with disabilities

Critical infrastructure and transportation expenditures

* Free public transportation for weekends for $318 million and $2.2 million for free public transportation

* $727 million is used to open a new subway tunnel under the CBD, the last opening date is still unknown

* Expanded $4.1 billion in Sunshine Station, which will connect to future airport rail lines and suburban rail cycles

* $976 million to upgrade roads and bridges across the state in 2025/26, including repairing pot holes

* Additional $270 million to improve regional rail v/line network and $52 million to add three lines of service

Major Justice Expenditures

* $1.6 billion is used to introduce a new bail law, including $727 million to create an additional 1,088 prison bed

* $287 million is used for new financial aid programs to support crime victims and through medical expenses, emergency financial assistance and consultation

* $65 million is spent on tobacco and alcohol regulators, touted as a way to combat the illegal tobacco trade to exacerbate criminal gang conflict

Main investment expenditure:

* $240 million to boost business growth and investment in the state, including the new $150 million Victoria Investment Fund

Critical emergency and disaster funding

* $40 million is used to replace fire rescue Victoria Trucks, the group is $17.4 million to improve cybersecurity, following a cyberattack in 2022

* $10 million so the National Control Center can run 24/7

Main housing expenditure:

* $61 million to expand stamp duty concessions for unplanned townhouses, units and apartments until October 2026

* $4 million to expand mortgage pressure Victoria

Critical Environmental Expenditures:

* $32.6 million to maintain the health of creeks and rivers, including Murray Dear Basin

*$21.1 million to protect parks, bushes and coastlines

* Victorian agriculture is $16.6 million to provide emergency situations and support animal welfare

Expenditures for major indigenous affairs:

* Additional $167 million for cultural responsiveness and self-determined services for health, education and housing