On Tuesday Night, Jaclyn Symes delivered her first State budget as the Treasurer of Victoria, with a focus on relieving the cost-of-living pressure and investing in infrastructure and services that benefit Victorian families.
Cost of Living Measures
Included as a highlight of the budget is a number of measures that have been designed in order to provide relief from cost-of-living pressures. Some key highlights announced are as follows:
- $230 million to boost performance in emergency departments and ambulance response times
- Budget to spend $320 million to make public transport free for Victorians under 18 every day, and for seniors every weekend across our state
- $18 million to enable pharmacists to treat more Victorians and more conditions
- $50 million to deliver a new $100 Power Saving Bonus
- $859 million to continue Free Kinder, saving families up to $ 2,600 per child a year.
- $11.1 billion to open and operationalise nine new or expanded hospitals
Victorian Businesses
- The Budget delivers $627m to help businesses find new opportunities to expand and attract investment.
- A dedicated $50m regional stream will make sure that Victoria’s economic growth and secure jobs reach every corner of the state.
- $35m will help deliver programs including one-to-one facilitation and advice for small and medium-sized businesses to boost exports and help them navigate the challenging international trade environment.
- Between 2025‑26 and 2028-29, businesses are expected to pay $457m less in stamp duty, as this regime is gradually phased out for commercial and industrial properties.
The Silver Review
An independently run review of Victoria’s public service is currently being undertaken, led by Helen Silver AO, in an attempt to identify areas of inefficiency or low-priority programs.
The results of this review are expected to be delivered to the Government in June 2025. The budget paper also expands on steps the Victorian government have already taken to reduce inefficient government spending, such as implementing automation of certain activities and services, combining various departmental functions where there is a duplication of activities and winding down activities that have already achieved the desired outcome or are no longer a priority.
Taxation Revenue
The budget outlines a number of areas of taxation revenue and how much they are projecting to collect over the coming years. Revenue from taxation is set to be $41.7 billion in FY26, which will then increase by an average rate of 4.7% per year moving forward.
The key areas in which the Government expects to generate this revenue are by taxing employers and the labour force (Payroll Tax), land transfer duty, land tax and the newly introduced Emergency Services and Volunteers Fund (ESVF).
Land Tax & COVID Debt Levy
Land Tax will continue to increase as the government continues to target owners of multiple investment properties and those with vacant residential properties.
The budget includes a forecast of revenue expected to be generated by Land Tax – this is forecasted to generate $6.4 billion in FY26, then growing annually at an average rate of 5.7% per year.
In addition, the COVID Debt Levy continues to apply to landholdings until 2033 – the revenue generated from this levy is forecasted to be $1.2 billion in FY26, then increasing by an average rate of 5.6% over the years ahead.
Stamp Duty
Concession for Off-The-Plan apartments to Oct 2026:
In the 2025-26 Budget, the Government has announced new measures to support Victorians, including extending the temporary land transfer duty concession for off‑the‑plan apartments, townhouses and units for 12 months so that it applies to contracts signed on or after 21 October 2024 and before 21 October 2026.
New transfer duty system
More than 3,700 commercial and industrial properties have been transferred to the Government’s new land holding duty – this means that these properties won’t be liable for stamp duty the next time they are sold, but will eventually enter into the Property Tax regime after the initial 10-year ownership period has lapsed.
Emergency Services & Volunteers Fund levy
The Victorian government have introduced a new levy known as the Emergency Services and Volunteers Fund levy (ESVF) – this will be imposed on landholdings commencing from 1 July 2025 and will be collected via local councils.
The intended effect of this levy is to provide funding for emergency services within Victoria, including fire rescue services, Country Fire Authority and Triple Zero Victoria. It has been introduced as a replacement for the existing Fire Services Property Levy (FSPL) and is expected to provide additional revenue for the government through increased variable rates.
This new levy is expected to collect $1.6 billion in revenue in FY26 and $1.8 billion in FY27.
Forecast Government Debt & Interest Expenditure
The budget also provides a financial forecast of the State over the next five financial years. Victoria’s debt is forecast to continue to climb in the future, with interest payments being a significant cost to the State.
Whilst government investment into infrastructure is planned to reduce from $24.2 billion in FY24 to $15.6 billion in FY29, the amount of debt that the government has taken on is set to continue to rise into the future. The expected net debt for the state at the end of June 2025 will be $155.5 billion, with this budgeted to increase each year to be $194 billion in June 2029. This translates to a budgeted interest expense in FY26 of $7.6 billion, which is estimated to increase to $10.6 billion in FY29.
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Contact us
If you have any questions or concerns about how this budget may affect your business or personal tax matters, please don’t hesitate to contact your BKM representative.
For further information on the Victorian State Budget, please visit the full budget overview: https://www.dtf.vic.gov.au/2025-26-budget-overview
Read the full Statement of Finances here: 2025-26 Statement of Finances