Victorian Budget 2026/27: Health and transport focus strengthens inclusion

The Brotherhood of St. Laurence (BSL) welcomes the Victorian Government’s 2026/27 State Budget and its focus on health, disability inclusion, cost of living and public transport. It is incumbent on Australian governments to find ways to support those who need it most, particularly during difficult times such as the present, and work towards a fairer and more just society.

BSL commends the Victorian Government’s investment of $2.4b over five years towards the establishment of Foundational Supports, which includes setting up Thriving Kids. We look forward to seeing how the Victorian Government undertakes implementation. We also note the importance of the further $2.2b commitment to disability inclusion in schools for children with complex needs.

BSL applauds the Victorian Government’s prioritisation of Treaty, truth telling, and embedding First Nations history and culture into the school curriculum.

BSL also welcomes the ongoing investments in the VET Educator Academy and Turbocharging VET workforce to support Victorians to train for the jobs of the future. We would like to see these investments also used to grow the capability of teachers, trainers and institutions to provide equitable and inclusive training opportunities and outcomes for under-represented learners and jobseekers. 

An additional two-years of funding for the Victorian Pill Testing Service, including strengthening the prominence and impact of the Fitzroy fixed site at 95 Brunswick Street, supports BSL’s commitment to this critical harm reduction service delivered in its current location. Other important announcements to reduce cost-of-living pressures are:

• Reducing car registration costs and extending free public transport, providing a direct benefit for Victorians this year, particularly those who must commute for work.

• $28m to help households to install an energy efficient hot water system, with up to $1400 rebates through the Energy Assistance Program (originally developed and piloted by BSL) and the Solar Homes Program’s hot water rebates and electrification training.

• $860m investment into the Social Housing Growth Fund which will provide an additional 7,000 social housing properties built in Victoria within the next decade.

BSL Executive Director Dr Travers McLeod said this State Budget offers welcome support, but many people living in Victoria continue to face deep and persistent disadvantage: “Progress on reducing poverty requires investing in more than health, transport and education alone - it requires fair, secure, long-term funding that reflects the true cost of delivering essential and high quality services.”

“The community sector can’t be expected to respond to rising and increasingly complex need when funding is short‑term and largely unchanged. Reducing poverty requires long-term investment and prioritisation,” McLeod said.