Wednesday, 13 May 2026


Statements on tabled papers and petitions

Department of Treasury and Finance


Ryan BATCHELOR, Wendy LOVELL

Proof only

Please do not quote

Department of Treasury and Finance

Budget papers 2026–27

 Ryan BATCHELOR (Southern Metropolitan) (17:37): I rise to make a statement on budget paper 2 from the 2026–27 budget, which was tabled yesterday, particularly to look at what the budget paper tells us about the state of the Victorian economy. We know that there are many on the other side who like to talk down Victoria and like to talk down the Victorian economy, but if you actually read what is written in the budget papers on the outlook for the Victorian economy, you can see some pretty remarkable facts. The Victorian economy continues to grow and our outlook is positive. It is not something that has happened by accident and it is not something that has happened by chance. It has happened because Labor have a plan that is investing in our economy and that is investing in jobs. As a result our economy continues to grow, our labour market is resilient, we have got a low unemployment rate, there is growth in household incomes, we are building more homes than any other state and business investment growth remains strong.

The budget papers do present some of the challenges that we are facing, particularly the challenges that many households are facing at the moment because of the impact that the war in the Middle East is having on global supply, particularly fuel but also fertiliser. We know that war has put up petrol prices. It has put pressure on households, and households are feeling that pressure. That is why the budget delivers support to households through things like a 20 per cent rebate on car registration and free public transport, which has been extended until the end of the month and public transport is then half price for the rest of the year. We have got a midday power saver coming in in a couple of months. We have delivered and continue to provide free kinder. We have delivered and continue to provide free TAFE, and there is extra support for families to help with the costs of their kids’ schooling, whether that is through free dental check-ups, free glasses or free breakfasts. The list goes on.

Labor is helping families where we can. We are providing help, whether it is a cheaper commute to work, helping you realise the dream of buying your first home, getting a job, getting skills to get a job or coming home from work that little bit earlier. We are doing what we can to support families.

The resilience of the Victorian labour market is something that I think many, particularly those opposite, continue to talk down. One of the things I want to just briefly mention in the budget papers – if you look at page 27 of budget paper 2 – is you will see a quite remarkable analysis of the growth in female labour force participation that we are seeing here in the state of Victoria. The budget paper says:

Victorian employment has grown strongly in recent years, rising by more than 8 per cent over the three years to 2025. Solid economic growth, together with an increase in labour supply aided by strong population growth and rising workforce participation, have supported this outcome.

Victoria’s total participation rate remained near record levels during 2025, driven by a large increase in female participation. Participation of women in the workforce has risen significantly compared with pre-COVID levels … This rise in female participation, coupled with strong demand for workers, has led to a significant rise in the share of Victorian women in employment to historically high levels.

The rise in female labour force participation in Victoria is no accident. It has been supported by a government that has been deliberately investing in support programs to make sure that women can get into the workforce and stay in the workforce – things like our Best Start, Best Life reforms, including free kinder; things like our free TAFE helping skill development, skill acquisition, which are critical elements on the path to jobs; and, of course, our support for work from home. All of these measures are deliberate decisions of this Labor government to support female labour force participation. What this budget shows us is that those policies are delivering that support, and female labour force participation is at record levels. This budget tells a lot of good stories. It tells a story of an economy continuing to grow and a resilient labour market and that the future is bright here in the state of Victoria.

 Wendy LOVELL (Northern Victoria) (17:42): I rise to speak on the 2026–27 budget, which raises the funding for rail services across Victoria. On page 88 of budget paper 3 it says:

Funding is provided for train services across metropolitan Melbourne and regional Victoria, including … nine weekday return services for the Shepparton Line.

I am pleased to finally see some funding in this budget for additional train services between Shepparton and Melbourne. But let us be clear: these extra services are three years overdue now and will probably be four years or more overdue before they are finally delivered, because there is no timeline for the delivery of them. In 2021 the then Minister for Transport Infrastructure Jacinta Allan promised that by 2023 there would be nine return weekday services between Shepparton and Melbourne, and additional services have also been promised to bring the number of weekend services to five, but none of these have been delivered in 2026. Labor has continually delayed and delayed this project, and even now has not given a clear timeline for the commencement of the full delivery of the promised service uplift. Page83 shows that funding for this line item, which covers the Shepparton services as well as other rail services, provides just over $20 million a year for the next four years. However, on page 155 of the budget, in budget paper 4, it says that stage 3 of the Shepparton line upgrade has a financial completion date of quarter 4, 2027–28, with a footnote stating that:

The TEI has decreased by $5.408 million due to budgeted amounts being reclassified as operating instead of capital expenditure …

These changing figures and completion dates are causing confusion for Shepparton residents, who deserve clarity from the government about when the services they deserve will actually start. It is vital that train services are expanded for Shepparton residents and other commuters along the line as soon as possible, and I have written to the minister to demand a timeline on when these urgently needed additional services will actually begin running

I note that the government’s policy of free travel on public transport in general for the months of April and May has caused a significant surge in patronage, placing already crowded V/Line services under further pressure. There has been severe overcrowding occurring on the Bendigo line trains, which has prevented locals who rely on those services from boarding and in some cases has left mothers with prams and small children stranded on the platform. Commuters also report that V/Line staff have announced over the speaker that people in wheelchairs would not be able to board packed trains as there was no room for them. This issue is particularly acute in smaller towns that are missed by express services or have shorter platforms that only allow boarding in the front three carriages instead of all six carriages. Being unable to board a train could mean missed appointments or travel connections, with significant knock-on effects for those who are left stranded on the platform. If the government decides to make train travel free or reduce the price, it must take responsibility for the anticipated increase in demand. I have written to the minister asking for the government to put more carriages on popular services.

Another rail line I want to talk about is the Wodonga rail line, which is suffering severe overcrowding on the trains. This is due to the government’s cap on fares for regional travel and free travel as well. The free travel policy has compounded this problem, making the overcrowding worse and taking away the need for a ticket – which the government has done; you cannot book a ticket – has prevented people from being able to book a seat on the train, leaving them unsure if they will be able to sit down for their 3-hour journey. Steve Martin, the Liberal candidate for Benambra, tells me he has heard from many Wodonga locals about the stress of not knowing whether they or their family members will actually be able to get a seat when travelling to and from Melbourne. The government has completely mismanaged the free travel policy for regional rail services, and we need the booking system back now for Wodonga for those who are unwell or older and need assurance that they can travel safely and in comfort.

The final disappointment in this budget is that there is no funding for the Wollert rail extension. Extending the Mernda rail line from Lalor to Wollert is essential within the next 10 years, as Whittlesea council expects the local population to almost triple, with the number of people in Epping North and Wollert going from 35,000 in 2019 to 95,000 in 2041. These missed deadlines have caused delays on this rail line, and people need to know when these services will be delivered.