Victorian budget 2025: Top things you need to know, sectors that were winners and losers

The 2025-26 Victorian state budget, delivered by Australian treasurer Jaclyn Symes , promises to deliver on “what matters most” with sweeping investments in health, schools and public transport. Some sectors, however, are left out in the cold.

Symes revealed a massive $11.1 billion boost to health, a $5 billion public transport blitz, and a landmark commitment to free travel for young Victorians, as per the Guardian.

Here are the winners and losing sectors of the 2025-26 budget
Winners
School goers and senior citizens

From 2026, all Victorians under 18 will be able to travel on public transport for free, using a new $5 youth Myki card. The $318 million program is expected to benefit over one million children and save families up to $755 per child each year. Alongside children, seniors will also enjoy free public transport on weekends.

School-aged children will see an increase in support for camps, sports and excursions, with eligible students receiving $400, up from $154 for primary and $256 for high school students. More than 65,000 Get Active Kids vouchers will be available for concession card holders.

Additionally, $1.5 billion has been allocated for new and expanded schools, and lower-income households will get a $100 energy rebate.

Health sector

The budget delivered a major $11.1 billion health funding boost, including $9.3 billion for hospitals and $634 million to open or upgrade nine hospitals across Victoria, among them Footscray, Craigieburn, Cranbourne and Phillip Island.

Meanwhile, paramedics will receive $84 million in support, while emergency departments will benefit from $58 million aimed at cutting waiting times.

A trial allowing pharmacists to treat UTIs and reissue contraceptives without a doctor’s script will be expanded and made permanent. Pharmacists will now also be able to prescribe for allergies and high blood pressure.

Travelling

An almost $5 billion investment will see the Metro Tunnel "switch on" by the end of the year with $727 million committed, and $98.7 million will boost frequency on seven regional and metro train lines.

Sunshine Station will receive a $4.1 billion upgrade as part of the Melbourne Airport Rail project, while $1 billion will go towards fixing roads and potholes in a “better road blitz”.

However, a planned upgrade to Myki is $136.76 million over budget and running 18 months late.

Businesses

There are no new taxes on businesses this time, with the government committing hundreds of millions to boost business capacity and investment.

This includes a $150 million Victorian investment fund, a third of which is reserved for regional areas, $4 million to develop entrepreneur skills, and $240 million tied to economic growth strategies, such as red tape reduction and workforce training support.
Losers
Public service

Treasurer Jaclyn Symes said the budget plans for 1,200 less full-time public servants, and that number could grow to around 3,000 after the government finishes its review of the public sector by 30 June. While Symes said these won’t affect frontline services and are partly due to natural attrition, the cuts represent a significant downsizing of the bureaucracy.

Homeowners

Despite previous promises to help millennials into the housing market, there’s no bold new housing vision in this year’s budget.

There’s a modest $249 million joint spend with the federal government for infrastructure to support 4,000 new homes, and stamp duty concessions for off-the-plan homes are extended to October 2026 and expanded to more buyers.

But Victoria’s target of building 800,000 new homes by 2034 still feels out of reach.

While the state is forecast to post a $600 million operating surplus in 2025-26, its first since the pandemic, the story lies in the $12.2 billion overall deficit once infrastructure spending is included.

The government is sticking to its promise to keep net debt below 25% of state output, but the actual debt level continues to climb now forecast to hit $194 billion by 2029, well up from the $155.5 billion projected for mid-2024.