Officially announced earlier this morning, the Victorian Government’s 2026/27 Budget centres on easing everyday expenses—with a move that will see public transport fares slashed in half across the state for the remainder of 2026.
That means cheaper trips on trains, trams and buses, both metro and V/Line, at a time when rising fuel and household costs continue to bite.
It comes as Victoria positions itself as the only state on the east coast forecasting an operating surplus, with projections of $700 million in 2025–26, climbing to $1 billion the following year and $2 billion by the end of the forward estimates.
Cost-of-living front and centre
The half-price public transport initiative targets households immediately, while broader measures also ease pressure on families, particularly in education and early childhood.
Free Kinder remains a cornerstone, saving families up to $2,700 per child, while additional funding will support school upgrades, breakfast programs and cheaper uniforms. The budget also commits more than $5.5 billion to education, including upgrades at 31 government schools and new campuses in Melbourne’s growth corridors.
Healthcare is another major focus, with $1.6 billion allocated to stabilise hospital funding and expand access to services. This includes more paediatric appointments and surgeries, alongside continued investment in urgent care clinics and virtual emergency services.
Jobs, growth & future industries
Despite global uncertainty—from high interest rates to ongoing geopolitical tensions—Victoria’s economy continues to expand, now sitting nearly 15% larger than it was pre-pandemic in real terms.
Employment growth also remains a key talking point. More than 26,000 jobs have been added over the past year, driving a post-pandemic surge of more than 646,000 jobs—marking the strongest growth nationally.
Business activity is also on the rise, with more than 123,000 new businesses launched since mid-2020. The government says it will continue cutting red tape and investing in workforce skills, while also targeting emerging sectors like clean energy, data centres, mRNA manufacturing and critical minerals.
“By targeting priority sectors and the industries of tomorrow… our economy continues to grow,” Minister for Economic Growth and Jobs Steve Dimopoulos said.
Moreover, the government has earmarked a $12 million fund to attract global talent into these industries and will tighten local procurement rules to keep more government spending within the state.
Safety, housing & infrastructure
Community safety is another major pillar, with more than $1 billion allocated to policing, the justice system and emergency services. The funding includes support for a Violence Reduction Unit and initiatives designed to shift administrative work away from frontline officers.
On housing, the budget expands investment in social housing through an $860 million boost to the Social Housing Growth Fund, expected to deliver more than 7,000 new homes. The government has also extended stamp duty concessions for off-the-plan properties through to April 2027, aiming to lower entry costs for buyers.
While the budget leans heavily into spending, Victoria Government says it has offset costs through targeted savings—including more than $4 billion identified through an independent efficiency review.
Melbourne households will likely feel the most tangible change at the myki gate, where getting around the city becomes noticeably cheaper for the rest of the year.