FAMILIES and vulnerable people feeling the pinch of cost of living have been offered a small boost in a stripped-back state budget reeling from soaring debt.<\/p>\n
In her Victorian budget debut today (Tuesday, May 20) titled “Focused on What Matters Most”, Treasurer Jaclyn Symes dug into the state coffers for a $2.3 billion cost-of-living package.<\/p>\n
Another round of the power saving bonus will be rolled out in August at a cost of $50 million but it is limited to a $100 discount for concession card holders.<\/p>\n
An extra 27,000 rebates will be handed out for home owners to install electric heat pumps and solar hot water and solar hot water systems and $18 million set aside for pharmacists to treat more Victorians without a trip to the doctor.<\/p>\n
Premier Jacinta Allan has called getting millennials into homes the fight of her life but there wasn’t fresh housing help beyond $61 million to reduce stamp duty for off-the-plan apartments, units and townhouses for another 12 months.<\/p>\n
Ms Symes described the budget as “responsible”, delivering on the government’s fiscal plan and providing real help with cost of living.<\/p>\n
“This is support you can feel – at the kitchen table, at the school gate, at the train station.”<\/p>\n
Net debt projections came in at $194 billion by mid-2029, with interest payments to service it rising to $29 million a day by that point.<\/p>\n
Victoria’s debt as a share of the economy is expected to peak at 25.2 per cent in 2026\/27 before falling ever so slightly.<\/p>\n
Ms Symes will travel to the US in coming weeks to meet with credit rating agencies after they called for the state to demonstrate “fiscal discipline”.<\/p>\n
The state was gifted an extra $3.7 billion in GST revenue from the Commonwealth Grants Commission for 2025-26, $1.5 billion higher than forecast.<\/p>\n
Ms Symes said the government decided to deliver a smaller forecast operating surplus next financial year to fund more cost-of-living measures and service delivery, including a record $31 billion for health.<\/p>\n
The budget does not contain an exact number of job losses stemming from a review, led by Helen Silver, of the Victorian public service.<\/p>\n
But it banks on $3.3 billion in savings from ceasing and redesigning programs, reducing duplication and cutting about 1,200 full-time equivalent positions.<\/p>\n
“Redundancies will be to come but they’ll not be as high as the ultimate number,” Ms Symes said.<\/p>\n
More savings will follow after Ms Silver’s final report is handed to the government in June.<\/p>\n
“What I found pretty compelling in Helen’s initial work was Victoria have over 500 entities and 3400 public boards and committees,” Ms Symes said.<\/p>\n
“You can’t tell me there’s not some fat in there.”<\/p>\n
Infrastructure spending is forecast to slide over the next four years but the total for new and existing projects has jumped $8.1 billion higher to $213 billion.<\/p>\n
Ms Symes stuck to her word of no new or increased taxes, although the Emergency Services Volunteer Fund levy that has rankled firefighters and farmers will add $1.8 billion a year to the budget bottom line by 2026\/27.<\/p>\n
Key forecasts in the 2025-26 Victorian budget:<\/p>\n