Regional Victoria gets bare minimum from 'sensible' state budget

Treasurer Tim Pallas made significant investments to the areas he had to, but housing was a surprising omission as the state's housing crisis deepens.

The Victorian health system received $11 billion, by far the biggest investment in the sector in the state's history, in an attempt to repair historic hospital deficits.

Nearly $1 billion will be spent in 2024-25 to repair the crumbling road network, following a year when repairs dropped by 96 per cent.

The treasurer has also given a nod to young families, with a $400 bonus per child for parents of school-aged children, but parents of children in childcare were given little relief.

The state's health system has received an unprecedented $11 billion over five years, with nearly $2 billion annually over the next four years.

Victoria's public hospitals will receive $8.8 billion of that funding, in a bid to restore a hospital system that is tracking towards a $3 billion deficit in 2023-24.

The huge investment reflects the rising costs of healthcare, but ACM understands it is also an attempt by the Health Department to provide hospitals with the long-term security to hire the front line staff they need.

Victorian Healthcare Association chief executive Leigh Clarke said the money was a much needed cash injection into the system.

"When it comes to hospital services we see this as a re-basing of the funding we provide for healthcare," Ms Clarke said.

"There have been increases in the basic costs of health care that are outside the control of the services and the indexation hasn't kept pace.

"This really addresses the structural deficit that has emerged."

The two-year, $1.5 billion COVID Catch Up funding for elective surgery wasn't renewed and will lapse on June 30.

But the government said the Rapid Access Hubs and Patient Support Units set up under the plan will continue to operate, and said it was confident the funding expiry wouldn't cause elective surgery wait lists to blow out.

The government will spend $964 million on road repair and maintenance over 2024-25, with money brought forward from the $6.6 billion 10-year commitment made in last year's budget, as well as $105 million in new money.

Victoria's road network was extensively damaged by flooding and extreme weather in 2022 and 2023, with the government responding by ditching its repair targets in 2023-24.

Tuesday's budget revealed repairs in 2023-24 dropped by a staggering 96 per cent, from more than 9 million square metres refurbished, to just 343,000 square metres.

That figure is expected to grow again to more than 3 million square metres in 2024-25, but the budget papers showed number of regional roads meeting cracking, roughness and rutting standards were all set to decline over the coming year.

There was also just $60 million allocated to new road projects in regional Victoria, with a minimal $6.6 million in new funding to be spent in the coming year.

The government said it had recognised the cost-of-living pressures facing young families, dedicating $287 million to give parents $400 per school-aged child.

Education Minister Ben Carroll said the one-off payment would ease the cost of essentials like uniforms, books and equipment.

"It's tough for a lot of families right now. That's why we'll give families one less thing to worry about," Mr Carroll said.

There was an extra $129 million for free kinder kits for three-year-old kinder students, but nothing to address the broader workforce problems facing early childhood education.

The $14 billion plan to make three and four-year-old kindergarten free has been pushed back, with the government's pre-prep program to cover all students in 2036, rather than 2032.

But the budget didn't offer any short-term help to regional parents who are struggling to find childcare for their children.

After postponing several of its biggest Melbourne-based infrastructure projects, the government was widely expected to reinvest the savings in housing, but it didn't happen.

There was no new money for social and affordable housing, with the number of available social housing dwellings falling 2000 houses short of its 2023-24 target. The budget did include $197 million over the next four years to bolster frontline homelessness services across the state.

Housing Minister Harriet Shing said the government was "determined to make sure that more Victorians have safe, accessible [housing]", but the Victorian Greens criticised the lack of support.

Deputy leader and regional affairs spokesperson Dr Sarah Mansfield said country areas were sorely overlooked.

"There is no new money for homes and nothing for renters," Dr Mansfield said.

"One quarter of Victorians live outside of Melbourne, but the budget does not reflect our contribution and does not meet our basic needs."

The government committed $211 million to women's safety, with $30 million for refuges and emergency accommodation for families escaping violence.

ACM asked the Premier's office whether there would be any measures recognising higher rates of violence in regional Victoria, but understands there are no current plans for regional-specific investment.

There will be $38 million to deliver specialist case management for women and children, and $6.8 million for financial counselling for victim-survivors.

A spokesperson said there would be further measures announced in coming weeks to combat issues like toxic masculinity and women's safety.