Tuesday, 20 May 2025

Appropriation (2025-2026) Bill 2025

Appropriation

The SPEAKER (13:04): I have received the following message from the Lieutenant-Governor, accompanied by the estimates:

In accordance with the requirements of section 63 of the Constitution Act 1975 the Lieutenant-Governor, as the Governor’s Deputy, recommends to the Legislative Assembly that an Appropriation be made from the Consolidated Fund for the purposes of a Bill for an Act for the appropriation of certain sums out of the Consolidated Fund for the ordinary annual services of the Government for the financial year 2025/2026 and for other purposes, and hereby transmits to the Legislative Assembly estimates of the Expenditure requiring annual appropriation in the financial year 2025/2026.

Estimates tabled.

Introduction and first reading

Danny PEARSON (Essendon – Minister for Economic Growth and Jobs, Minister for Finance) (13:05): I move:

That I introduce a bill for an act for the appropriation of certain sums out of the Consolidated Fund for the ordinary annual services of the government for the financial year 2025–26 and for other purposes.

Motion agreed to.

Read first time; under standing order 61(3)(a), ordered to be read second time immediately.

Statement of compatibility

Danny PEARSON (Essendon – Minister for Economic Growth and Jobs, Minister for Finance) (13:10): In accordance with the Charter of Human Rights and Responsibilities Act 2006, I table a statement of compatibility in relation to the Appropriation (2025–26) Bill 2025.

In accordance with section 28 of the Charter of Human Rights and Responsibilities Act 2006 (Charter), I make this statement of compatibility with respect to the Appropriation (2025–2026) Bill 2025.

In my opinion, the Appropriation (2025–2026) Bill 2025, as introduced to the Legislative Assembly, is compatible with the human rights protected by the Charter. I base my opinion on the reasons outlined in this statement.

Overview of Bill

The Appropriation (2025–2026) Bill 2025 will provide appropriation authority for payments from the Consolidated Fund for the ordinary annual services of Government for the 2025/2026 financial year.

The amounts contained in Schedule 1 to the Appropriation (2025–2026) Bill 2025 provide for the ongoing operations of departments, including new output and asset investment funded through annual appropriation.

Schedule 2 of the Appropriation (2025–2026) Bill 2025 contains details concerning payments from the Advance to Treasurer in the 2023/24 financial year.

Schedule 3 of the Appropriation (2025–2026) Bill 2025 contains details concerning payments from advances made pursuant to section 35 of the Financial Management Act 1994 in the 2023/24 financial year.

Human Rights Issues

The Appropriation (2025–2026) Bill 2025 does not raise any human rights issues.

As the Appropriation (2025–2026) Bill 2025 does not raise any human rights issues, it does not limit any human rights and therefore it is not necessary to consider section 7(2) of the Charter.

Conclusion

I consider that the Appropriation (2025–2026) Bill 2025 is compatible with the Charter because it does not raise any human rights issues.

The Hon Danny Pearson MP

Minister for Finance

Second reading

Danny PEARSON (Essendon – Minister for Economic Growth and Jobs, Minister for Finance) (13:10): I move:

That this bill be now read a second time.

The SPEAKER: In accordance with the resolution of the house on 15 May 2025, I ask the Serjeant-at-Arms to admit the Treasurer.

Serjeant-at-Arms admitted Jaclyn Symes (Treasurer) to chamber.

Jaclyn SYMES (Northern Victoria – Treasurer, Minister for Industrial Relations, Minister for Regional Development) (13:11): I proudly begin my first budget speech by acknowledging the traditional owners and custodians of this land.

I pay my respects to elders, past and present.

The Allan Labor government is committed to truth, treaty and self-determination for First Peoples.

Speaker, around the world and here at home, families are making hard choices.

They’re weighing up what they can go without and holding tight to what matters most.

This budget meets them at that moment – with care, with discipline, and with determination.

It delivers real help with the cost of living. It invests in the services people rely on.

And it does so with a clear and steady focus: backing Victorians not just through the challenges of today but for the opportunities of tomorrow.

We’ve been able to do that because we’ve made responsible choices, carefully weighing every decision and making sure every dollar goes where it matters most.

It means that with this budget, Victoria returns to surplus. We’ve done it while delivering record cost-of-living relief and backing the people who carry our state forward, because we know what nurses mean for a family waiting in emergency, what a good teacher can unlock in a Victorian child, what it means to see the police out in your community or to get an ambulance when you need it most – because these aren’t just services; they’re the building blocks of a fairer and stronger state.

It’s why the Allan Labor government is focused on the things that matter most: real help with the cost of living, good hospitals, great local schools, safe communities, decent jobs, and opportunity wherever you live.

Our economy is strong. Over the past decade, Victoria has led the states in real economic growth, creating over 900,000 jobs and adding $138 billion to Victoria’s economy.

This budget continues to back Victorian business, with $240 million to support further growth and investment, including the new $150 million Victorian Investment Fund, with $50 million dedicated to supporting jobs and investment in regional Victoria, and an additional $35 million to deliver one-to-one advice and help more Victorians take their products to the world.

Speaker, in the last five years, more than 113,000 new businesses have been created in Victoria, the largest percentage growth of any state.

And that’s absolutely something to celebrate.

But we also know that numbers like these don’t tell the full story, because behind every job created and every dollar added are real people, and right now too many of them are doing it tough.

Families are counting every dollar. Parents are watching the price of groceries, petrol, rent, and bills inch higher week by week.

The cost of living has hit hard. And higher interest rates have only made it harder. That’s why this budget delivers targeted, meaningful cost-of-living relief, because good governments don’t look away when times get tough. They show up. In my first budget as Treasurer, I want Victorians to know this: we see you, we hear you, and we’re doing something about it – because building a fairer Victoria starts with backing its people, and that’s exactly what this budget is about.

Speaker, I was the first in my family to finish high school and go to university.

It wasn’t easy – four of us, uni students from Benalla, crammed into a tiny unit in Burwood, working part-time jobs, eating noodles, studying together late into the night. Those years taught me something that I’m now extremely grateful for: that education opens doors. And importantly, it gives people the chance to imagine a bigger future.

And that belief – that every Victorian deserves hope and to dream big about their future – is at the heart of this budget.

It’s why we’re building and upgrading and planning new schools across our state, because every family should be able to rely on a great local school.

But we’re not just building new classrooms; we’re focusing on the learning inside of them too.

We’ve supported teachers to lift year 12 completion rates dramatically – from 92 per cent in 2021 to 97 per cent today – because we know finishing school sets people up for life.

The VCE vocational major is central to this. It mixes practical job skills with traditional subjects, giving students more choices about their future and more reasons to stay in school and have grand plans.

And we’re taking that even further, investing $27 million in dedicated pathway coordinators at government high schools.

These coordinators will help students find the right course, apprenticeship, or career, ensuring young people don’t feel lost when planning their future.

We’re helping more young Victorians discover a love of learning, including maths: upskilling maths teachers, introducing a new year 1 numeracy check and, for kids who really love maths, advanced maths camps free of charge.

We’re completing the statewide rollout of our disability inclusion reforms, making sure every child is supported to be their best.

And we’re continuing to expand free TAFE through 2026, making sure that Victorians can learn new skills or refresh old ones without worrying about money.

The Allan Labor government has not only made our public transport system stronger. We’ve made it cheaper for Victorians – not just for us out-of-towners but for those in Melbourne to get out of town to see and experience everything that regional Victoria has to offer.

Passengers have saved well over $100 million since the introduction of our fairer regional fares.

But we can do better, and in this budget we are.

It’s why we’re making public transport completely free for every Victorian under the age of 18.

It’s a huge help for families, saving them upwards of $700 a year. And it doesn’t stop there.

We’re also expanding free weekend public transport for every seniors card holder in Victoria, allowing grandparents to enjoy time with family, or to get out and explore the state, without worrying about how much it might cost.

Speaker, budgets are about choices.

And in this budget, we have chosen to back Victorians with the services they need now, while planning for the kind of future Victorians want and deserve.

This budget represents a profound commitment to the people who keep our state safe, strong, and moving: our nurses, police, teachers, train drivers, apprentices and so many others.

With this budget, we’re continuing to deliver the biggest investment in frontline staff and services as a share of workforce investment since 2019.

That’s not just a percentage; it’s a statement of our values.

It means $203 million for self-determined health, education, employment, culture and other services for First Nations Victorians; another $172 million to help victim-survivors of family violence with one-on-one support, for specialised legal services, and to back Respect Victoria to help prevent gendered violence before it begins.

It means looking after farmers, with $900,000 to support the work of the National Centre for Farmer Health.

It means bigger, better care in Maryborough and Geelong.

It means real investment in emergency departments, mental health care, and faster ambulance response times.

It means a lot to me personally.

Last year, my mum spent five months in the public hospital system – in and out of the ICU and various medical wards at Royal Melbourne, as well as the medical and rehabilitation units at Northeast Health Wangaratta.

I want to take the opportunity to acknowledge and thank our amazing healthcare workers. Because of them, and supported by our investments, we have a world-class health system.

I am incredibly proud that this budget reflects and builds on our track record, with funding for new hospitals and community hospitals across Footscray, Frankston, Craigieburn, Cranbourne and Phillip Island, ensuring more patients get the care they need sooner.

In fact, almost a third of this year’s expenditure is dedicated to the health and wellbeing of Victorians and their kids, invested in our hospitals and healthcare workers.

We’re also making it easier to access treatments normally only available through a visit to the doctor, by expanding the role of our pharmacists and making those consultations free.

It’s cost-of-living relief that eases pressure on GPs and emergency departments and saves families both time and money.

Speaker, I want my first budget to give people hope.

For our youngest Victorians, that begins with opportunity, like the opportunity to join their classmates on camp, to play in a team, to feel like they belong.

These things should be a rite of passage, not a privilege.

But for too long, too many kids have missed out not because they didn’t want to go but because their families simply couldn’t afford to send them.

That’s why this budget boosts our camps, sports and excursions support for eligible students to $400.

This is what fairness looks like. That’s what dignity feels like.

And it’s the same principle behind our $2 billion investment in early childhood education, delivering free kinder statewide for every three- and four-year-old, saving families around $2600 per child.

It’s about giving every child the best start in life and giving every parent the support they need to offer it, because when a child is welcomed, encouraged, and included from the very beginning they don’t just learn, they grow. They thrive, and so does our state.

Just as we’re backing our future generations, we’re building for a growing state: a $4.1 billion investment in the Sunshine station superhub; opening the West Gate Tunnel and Metro Tunnel, transforming travel across Melbourne and cutting commute times.

And with $727 million, we’ll be ready to run services through five new underground stations, with more services on the Sunbury, Pakenham and Cranbourne lines.

And because we’ve freed up the city loop, we can deliver more services on other lines, from Werribee to Sandringham, all while boosting V/Line trains to Bendigo, Traralgon and Seymour.

Building a livable Victoria isn’t just about construction; it’s about connection.

No family should ever have to choose between getting where they need to go and getting there safely.

Last year, the Labor government delivered one of Victoria’s biggest single-year investments in road maintenance.

This year’s budget goes further with a massive $976 million to fix potholes, upgrade road surfaces and keep bridges and roadsides across Victoria safe.

We’re also delivering a $1.2 billion road blitz and improving safety with $412 million for the next phase of our road safety action plan.

But it’s not just how we move around the state that matters; it’s where we live and how we live.

It’s why we’re cutting red tape, unlocking vacant government land and fast-tracking the renewal of public housing, to build more homes where people need them.

The Suburban Rail Loop is Australia’s largest housing project. With Melbourne expected to reach the size of London by the 2050s, it will deliver 70,000 more homes on the doorstep of health care, education precincts and jobs.

In this budget, we’ll encourage more new apartments, units, and townhouses by extending the stamp duty concession, slashing stamp duty on eligible off-the-plan homes until October 2026.

And wherever people choose to live, we’re helping them save even more with our Solar Homes program.

Already, 300,000 homes have installed solar panels, saving up to $750 a year.

This budget extends that success with rebates for electric heat pumps and solar hot-water systems, cutting energy bills by up to $400.

And we’re delivering a $100 power saving bonus for households on a concession card, helping cover the cost of winter bills for those who really need it.

As a Labor government, it is in our DNA to support the most vulnerable in our community.

Hunger doesn’t always look like what you expect.

Food relief agencies are seeing more full-time workers, people juggling rent and bills, needing help for the first time, so we’re stepping up.

We’re doubling our community food relief program.

It’s an $18 million investment that means more support for regional food shares in Albury–Wodonga, Geelong, Bendigo, Shepparton, Mildura and Warrnambool; additional grants to neighbourhood houses, community groups and volunteer-led organisations across Victoria to provide meals to families doing it tough; and a $3 million boost to Foodbank’s Grow program, making sure surplus farm produce that would otherwise go to waste supports Victorians experiencing food insecurity.

We’re backing Good Shepherd and its Good Money program with another $5 million, providing interest-free loans when life throws you a curveball, because a broken fridge or a surprise bill shouldn’t push a family to the edge.

This budget adds $61 million to our investments in homelessness support to give more Victorians the safety and security of a home.

We’re also supporting Mortgage Stress Victoria with an extra $4 million so their team of lawyers, social workers, and financial counsellors can continue their quiet, vital work, because when a family is at risk of losing their home, it’s not just about finances. It’s about everything that home represents: the roof over your head, the school down the road, the place where your kids feel safe at night.

This support isn’t about charity. It’s about fairness, because dignity shouldn’t come with conditions. And security shouldn’t be reserved for the few.

It’s something we all deserve and something good governments help protect.

We can deliver these investments because of our responsible approach to financial management.

With my first budget, we are firmly on track to deliver on the government’s fiscal strategy.

The budget delivers an operating surplus in 2025–26 – the first since before the pandemic – with average surpluses of $1.9 billion over the forward estimates.

By the end of the forward estimates, net debt is declining as a proportion of the economy.

These fiscal outcomes and our economic plan will help to ensure Victoria’s economy continues to grow strongly and creates good secure jobs.

This is the beginning, not the end.

Families and businesses are carefully considering every dollar. They rightly expect their government to do the same.

It’s why we commissioned an independent review of Victoria’s public service, led by Helen Silver AO, to ensure spending is aligned with the needs and priorities of Victorians.

The final report will be received in June, but we’re already acting. By stripping back inefficiency in government spending, reducing duplication and winding back non-priority programs, we have been able to invest in what matters most.

Speaker, this is a responsible budget. It delivers on our fiscal plan.

It returns Victoria to surplus.

It reduces net debt to GSP over the forwards.

And most importantly, it is focused on the core services that Victorians rely on.

It backs the state government’s front line and helps them deliver excellence to the community.

And it provides real help with the cost of living: a cheaper power bill that brings some breathing room; a hot meal that reminds someone they are seen, cared for and important; a free V/Line trip that keeps a family close.

This is support you can feel – at the kitchen table, at the school gate, at the train station.

It’s a budget delivered by a government that is on Victorians’ side, because every choice in this budget is shaped by a deeper truth about the kind of Victoria we believe in, where opportunities are not limited by circumstance but expanded by choice – a fairer, stronger, more connected Victoria.

That’s what we’re building, and that’s what this budget delivers. I commend this bill to the house.

Serjeant-at-Arms escorted Jaclyn Symes from chamber.

James NEWBURY (Brighton) (13:30): I move:

That the debate be now adjourned.

Motion agreed to and debate adjourned.

Ordered that debate be adjourned until tomorrow.