The Victorian Government has handed down its 2025/26 State Budget, which outlines $15.9 billion in infrastructure funding by 2027-28.
Regional drivers will benefit from $976 million in total investment in 2025-26, which will support the delivery of the State Government’s ‘Better Roads Blitz’ program to fix potholes and resurface roads across Victoria.
This program also supports the rebuild, repair and resurfacing of arterial roads, as well as maintenance on vital transport infrastructure such as bridges and traffic lights.
The Metro Tunnel project has received $727 million to switch on and run services, with an additional $46 million helping to deliver additional services on the Sandringham, Craigieburn, Upfield and Werribee lines. Another $52 million will go to supporting regional train services.
The Victorian Government has also committed $4.1 billion to rebuild Sunshine Station into a ‘transport superhub’, one of the first milestones required of the delivery of the Melbourne Airport Rail. This project will improve the efficiency of more than six kilometres of track from West Footscray to Albion. The project will also deliver extra regional platforms at Sunshine, a brand-new station at Albion and the essential first step to enable the electrification of the Melton Line.
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Victoria’s bus network will benefit from $162 million in funding that will go to new and extended bus routes in growth areas, new and upgraded services for the new West Tarneit Station, as well as additional and upgraded services for a number of other stations and suburbs.
Additional funding will see $270 million go to increasing the reliability of the regional rail network, $72 million for safety upgrades and infrastructure of the next generation of trams and $27 million to deliver improved accessibility for trams stops along Droop Street, Footscray including outside the new Footscray Hospital.
This is on top of $250 million in funding (in conjunction with the Federal Government) to deliver major improvements to Werribee Main Road – improving safety and reducing congestion. This project will upgrade four intersections and the Princes Freeway on-off ramps, as well as adding an additional lane to the existing Werribee Main Road bridge crossing the Princes Freeway.
Funding of $81 million will deliver improvements for roads and bridges in regional Victoria, including in San Remo, Terang and Lakes Entrance.
This Budget also invests an additional $412 million to roll out safety upgrades across the state. This includes installing road safety barriers and adding more cameras that detect mobile phone use and people not wearing seatbelts.
Industry reaction
Civil Contractors Federation (CCF) Victoria has “expressed deep concern at the sharp and sustained decline in infrastructure investment” revealed in the State Budget.
CCF Victoria CEO Lisa Kinross described the Budget as a missed opportunity to invest in Victoria’s long-term prosperity and a failure to recognise the critical role civil construction plays in driving economic growth, employment, and regional development.
“This is a Budget for voters, not builders,” Kinross said. “The continued decline in infrastructure investment sends the wrong signal to industry at a time when we should be reinforcing – not retreating from – our commitment to a resilient and future-ready Victoria.”
Master Builders Victoria (MBV) CEO Michaela Lihou said while she appreciated the Government’s deliberately conservative fiscal approach, the organisation had also hoped for broader stimulus for the building industry, particularly in the face of extreme housing shortages across Victoria.
“We understand that any Budget is by definition a juggling act and certainly understand the difficult financial position the Government is currently facing,” she said.
“However, while the significant shortage of housing in Victoria has also been a primary focus for the past few years now, we had hoped the Government would have seen the value in a significant stimulus injection to get the industry and homes moving for deserving Victorians.”
To view the Victorian Budget 2025/26 priorities, click here.
