Victorian Treasurer, Tim Pallas, delivered the Victorian State Budget on 20 May 2021, describing his budget as a “road to recovery” after multiple COVID-19 lockdowns severely impacted the State’s economy during 2020-21.
The budget sets out a long term plan to address budget blow-outs in major infrastructure projects and ballooning debt, while at the same time investing in jobs creation and metal health initiatives as part of the state’s recovery from COVID-19.
Key initiatives were announced as part of the 2021-22 state budget include:
JOBS AND RECOVERY
- $431m to support businesses and creating new jobs, including $250m in wage subsidies to help at least 10,000 jobseekers
EDUCATION
- $1.6b to build 13 new Melbourne schools and upgrade 52 others
- $380m for TAFE and training providers, including campus upgrades and new equipment
- $277m for mental health and wellbeing programs for students, including therapy dogs and mental health aid training
- $167m for continued roll out of free three-year-old kindergarten
TRANSPORT
- $3.2bn for public transport services and infrastructure, including $986m for 25 new trains to be built in Ballarat, $613m to improve reliability of V/Line train services and $368m to get the new fleet of Next Generation Trams onto tracks
- $386m for a new Road Safety Strategy to deliver new safety technologies and infrastructure upgrades.
- $265m to plan, upgrade and maintain suburban, rural and regional roads across the state
SMALL BUSINESS/TAX
- Payroll tax-free threshold to be lifted to $700,000 a year ahead of schedule, helping 44,000 businesses
- A lower payroll tax rate of 1.2125 per cent for regional employers will also come into effect a year ahead of schedule
HEALTH
- A new levy on businesses with national wages in excess of $10 million will fund a record $3.8bn spend on mental health
- $954m for community-based care, establishing 22 reformed mental health and wellbeing services to replace current services
- $196m towards a new and dedicated support service for infants, children and families across Victoria.
- $1.3bn to continue the state’s pandemic public health response
- $759m to tackle the state’s ambulance crisis with more paramedics, triage care and support staff for Ambulance Victoria
- $556m to build and expand 10 community hospitals at Craigieburn, Cranbourne, Pakenham, Phillip Island, Sunbury, Torquay, Mernda, Eltham, Point Cook and the inner-south of Melbourne
- $70m for public IVF services from next year for 4000 Victorian families
WOMEN AND CHILDREN
- $354m to support family violence victim survivors and address the overall issue, including $97m to improve information sharing, $78m to expand the network of specialist family violence courts, $49m for more 24/7 crisis services, and $44m to support children and young people impacted by violence and sexual assault
AGRICULTURE
- $12m to promote Victorian produce and make its origins easier to trace
- $12m to tackle roadside weeds and pests
TOURISM
- $288m for Victoria’s creative industry, including $121m to attract international productions
- $43m to attract global business events
ENVIRONMENT
- $250m to protect environment and improve health of waterways and Port Phillip Bay
- $46m for Australia’s first zero emissions vehicle subsidy program
- $20m to make Victoria a leader in low-emissions agriculture and combat drought
- $8.4m water infrastructure to optimise efficiency
BUSHFIRES
- $788m to reduce the impact of bushfires on Victorian communities
- $104m to help bushfire ravaged communities recuperate and move forward
- $384m for more skilled firefighters and high-tech gear
For further information in relation to the above initiatives, and others that were announced as part of the budget, please visit the website of the Victorian Department of Treasury and Finance: www.dtf.vic.gov.au/state-budget