This morning, I sat at my kitchen table, coffee in hand, scrolling through the latest news on my laptop. The 2025–26 Victorian State Budget had just been released, and like many, I was eager to understand what it meant for everyday people like me.
Premier Jacinta Allan described it as “a budget firmly focused on helping families… making life that little bit easier”. At first glance, it does seem designed to offer some breathing room. But as with all budgets, once you dig beneath the headlines, things get complicated. There’s a tangle of figures: a promised $600 million surplus next year, net debt pushing towards $194 billion by 2028–29, and new levies to fund it all.
Still, the headlines will sit well with many families. One of the most talked-about measures is the $400 School Saving Bonus. From next year, every child in a government school will receive the money on a card, which parents can use to buy essentials like uniforms, laptops or even pay for school camps. There’s no need for receipts, no bureaucratic hoops—just a practical cashless card. In times like these, that matters.
Then there’s public transport. From January 2026, every Victorian under 18 will travel for free. That means families could save hundreds of dollars a year. Treasurer Jaclyn Symes called the budget “real money in real pockets at a time families need it most” , and she’s not wrong. The cost-of-living package adds up to $2.3 billion and is largely funded by an unexpected $4.6 billion boost in GST revenue from Canberra.
Health is another major focus. With $11.1 billion set aside, we’re told to expect shorter waits in emergency departments, new wings at regional hospitals and a general lift in healthcare services. On the education front, the government is pouring $1.5 billion into upgrading schools, aiming to modernise every state school by 2028. Given how many classrooms are still using ageing portables with patchy heating, that investment is sorely needed.
All of this will bring some relief. But, of course, relief costs money.
The most controversial part of the budget is a new levy—called the Emergency Services and Volunteers Fund. It’s essentially a property-based charge expected to raise over $2 billion across three years. Farmers, already dealing with rising land valuations, say it triples what they paid last year. The Premier, meanwhile, emphasised the importance of the Emergency Services and Volunteers Fund levy in ensuring that vital services—like firefighters and SES volunteers—have the resources they need to respond effectively when disaster strikes. Both have a point, but for many in regional Victoria, it’s a bitter pill.
Then there’s the state’s growing debt. Victoria now pays $28.9 million every day in interest alone. That’s more than the state spends running its entire court system. The Opposition was quick to attack, with Liberal MP Brad Rowswell declaring Victoria “the debt and tax capital of the nation”. He warned of “a tidal wave of debt still coming”. In response, Symes insisted it’s “manageable”, pointing out that debt remains under 25 per cent of Victoria’s GDP and is going towards infrastructure “our kids will thank us for”.
That infrastructure includes the still-contentious Suburban Rail Loop. Once sold as a $125 billion transport project, it’s now being pitched as a housing strategy, with claims it will “unlock 70,000 new homes” near train stations. The Australian called this rebranding “dodgy”, and the Opposition has accused the government of spin. But to be fair, building homes around public transport hubs is a smart idea. It’s been done in cities like Sydney for decades. The issue is whether the promised housing will appear fast enough to justify the staggering cost.
The savings side of the budget doesn’t get quite the same fanfare. At least 1,200 public sector jobs will go this year, and potentially up to 3,000 more once a review is completed in June. Unions are understandably unhappy. They say the government is sacking the same people it praised during the pandemic. The Premier insists they’re targeting “duplication, not frontline services”, but those who lose their jobs are unlikely to take comfort in that distinction.
Still, there are a few sensible measures worth noting. The payroll tax-free threshold is rising to $1 million, which means around 6,000 small businesses will no longer need to pay it. For many, that’s the difference between hiring an apprentice or not. There are no new taxes this time—something the Treasurer was keen to highlight—and there’s a final $700 million boost to the shared equity Homebuyer Fund, which helps people buy homes with smaller deposits. Add to that targeted spending on mental health and homelessness, and there’s a sense the government hasn’t completely taken its eye off those doing it toughest.
So what does it all mean for the average Victorian?
In the short term, many people will feel better off. A family with two kids in public school will receive $800 towards school costs next year. Free public transport for kids will help ease the weekly budget. If you run a small café and your payroll just passed $1 million, you’ve now got one less tax to pay. If you’ve been stuck in hospital corridors waiting for care, maybe—just maybe—things will start to improve.
But the longer-term picture is more uncertain. Every dollar borrowed comes with an interest bill. And if rates go up or federal support drops off, the state might struggle to meet all its promises. Treasury’s own graphs show that by 2029, Victoria could be spending more on interest repayments than on the police.
Still, budgets are about choices. And this one makes a deliberate choice to cushion families now, while banking on future growth to cover the cost. Some will call that brave; others will call it reckless. The truth probably sits somewhere in the middle.
Reflecting on the budget, I think of the families who are quietly struggling. Parents skipping meals so their kids don’t go without. Young people losing hope about ever owning a home. For those people, this budget offers something more than spin. The $400 bonus isn’t flashy, but it’s real. Free travel might not solve everything, but it chips away at daily stress. That matters.
No budget can fix every problem. And this one has its flaws—rising debt, clever accounting, painful job cuts. But it also has heart. It tries, within real limits, to give people a hand. That may not make for soaring headlines, but in a world where cynicism comes easy, small steps towards fairness deserve to be noticed.
In the end, this budget feels like a patchwork quilt—some bold colours, some worn edges. If the economy holds and the spending is smart, it may well keep us warm. If not, we’ll be reaching for the thread and needle sooner than we’d like. But for now, it’s a gesture of comfort—and in times like these, we’ll take it.
