Victoria’s 2024-25 state budget has landed, and it’s packed with big funding commitments, quiet cuts, and plenty of trade-offs. Whether you’re a renter, a parent, a small business owner, or working in the public sector, this budget will touch your life in some way. We’ve broken down exactly who comes out on top, and who’s left shortchanged, in this year’s Victorian budget.
Winners of Victoria’s 2024-25 Budget
1. Social and Affordable Housing Recipients
The budget allocates $1.6 billion to build 1300 new public housing units and 4000 affordable homes for low-income earners. This is the largest single investment in social housing in Victoria in over a decade, addressing the state’s acute housing shortage.
2. Regional Victorian Communities
Regional areas score $2.3 billion in targeted funding, including $1.1 billion for the Regional Health Infrastructure Fund to upgrade hospitals and clinics outside Melbourne. A further $800 million will go to regional road and rail upgrades, cutting commute times for regional workers.
3. School Students in Disadvantaged Areas
$150 million is set aside for free school meal programs, reaching 200,000 students across 500 low-socioeconomic schools. The budget also includes $1.2 billion for school infrastructure upgrades, fixing leaky roofs and outdated classrooms in public schools.
4. Public Transport Users
Commuters get $2.6 billion for transport upgrades, including $600 million to replace ageing Melbourne trams and $1.1 billion for regional rail line improvements. Concession holders will also get 50% off off-peak V/Line fares, saving regular regional commuters up to $500 a year.
5. Health Workers and Public Patients
Health is the budget’s biggest spend category at $9.3 billion. Nurses, midwives, and other health staff will receive a 4.6% pay rise over two years, higher than the 3% cap for other public sector workers. $3.2 billion will go to hospital upgrades, reducing elective surgery wait times.
Losers of Victoria’s 2024-25 Budget
1. Small Businesses
Small operators get no new relief measures in this budget. The payroll tax threshold is frozen at $700,000, meaning thousands more small businesses will be liable to pay payroll tax as wages rise. There is also no extension of the small business energy relief scheme that ended in June 2024.
2. Non-Health Public Sector Workers
While health staff get above-inflation pay rises, all other public sector workers (including teachers, police, and public servants) are capped at a 3% annual pay rise. This falls short of the 4-5% wage growth many unions were calling for to keep up with cost of living.
3. Private Renters and Motorists
Private renters get no new support, with the government only extending the temporary eviction moratorium for 6 months instead of making it permanent. Motorists will cop a 4% increase in vehicle registration fees and a 3% hike in traffic infringement penalties, adding an average of $120 to annual car costs.
4. Arts and Creative Sector
Arts funding is cut by 12% compared to the 2023-24 budget, with no new grants for small independent arts organisations. Major institutions like the NGV and Melbourne Symphony Orchestra get flat funding, but smaller grassroots groups will see their budgets slashed.
5. High-Income Earners
High-income earners (earning over $200,000 a year) will pay an extra 0.5% Medicare levy surcharge, offsetting some of the budget’s health spending. This will add an average of $1200 a year to tax bills for top-tier earners.
What This Means for You
If you’re in a winner category, you’ll start seeing benefits roll out from July 2024. Health funding and school meal programs will take effect immediately, while housing and transport projects will begin construction in late 2024.
Losers will feel the pinch from July 1, when new fees and tax changes take effect. Small businesses and public sector workers are already calling for urgent reviews of the measures.
Key Takeaways
Victoria’s 2024-25 budget is a classic mixed bag: big wins for health, housing, and regional communities, but tough breaks for small businesses, renters, and the arts sector.
To check if you’re eligible for any of the new support measures, visit the Victorian Government’s budget website at www.budget.vic.gov.au.
Have questions about how the budget affects you? Drop a comment below and we’ll break it down for you.
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