Health wins big in Victorian state budget

The Victorian state government has released what is is calling a “responsible budget focused on what matters most.”

Treasurer Jaclyn Symes’ first budget has projected a $600m operating surplus, which is about $1bn less than its forecast last year.

Net debt is forecast to grow and hit a record high of $194bn by June 2029, with the state’s forecast debt of $167.9m in 2025-26 sitting at 25.1 per cent of Victoria’s economy.

However, it is the first operating surplus since the Covid-19 pandemic, a feat Ms Symes said demonstrated the government could “service that debt while delivering the infrastructure and services that Victorians need”.

“From here, net debt will continue to fall as a share of the economy, and we will see continued surpluses in the years to come, allowing us to continue to provide services and infrastructure that Victorians need,” Ms Symes said.

$11.1bn for healthcare

The State’s budget follows the Federal budget example with a heavy focus on reducing the cost of living.

The plan includes savings on energy bills, free public transport, first-home buyer concessions and subsidised TAFE courses.

Minister for Health and Ambulance Services Mary-Anne Thomas said that this budget will be injecting an additional $11.1bn into health, on top of the $31b that has already been allocated this year.

“We’re focused on what matters most – opening new hospitals, delivering better care and backing our health workforce – because free, accessible and lifesaving care is what every Victorian deserves,” she said.

Aged care

This Budget delivers an additional $50m for public aged care, funding new beds and nurse‑to‑patient ratios, including $7.6m for the improvement of medication management in residential aged care homes.

“We are continuing to reform the mental health system and support our public sector aged care services – to make sure all Victorians can access the care they need, when and where they need it,” the Minister for Mental Health and Ageing Ingrid Stitt said.

Another $25m has been allocated to help Victorian residents live at home for longer, aimed at delivering equipment and supports to people wishing to maintain their independence as they age, and with the government’s $1.2bn investment into public transport, seniors will also benefit from free public transport on weekends.

Council on the Ageing (COTA) Victoria and Seniors Rights Victoria (SRV) have welcomed the introduction of “several commendable initiatives”, but argue that systemic challenges vital to the health and wellbeing of older Victorians remain largely unaddressed.

“We welcome the tangible supports included in this budget and are hopeful these measures will help to ease cost-of-living pressures, improved access to healthcare, and strengthened aged care and justice responses across the state,” COTA Victoria and SRV chief Ben Rogers said in a statement.

“This is a please-all budget that runs the risk of blunting its impact.

“While older people will benefit from today’s announcements, this budget is unlikely to change the experience of ageing in Victoria.”

The peak bodies have called for further investment into the issues disproportionately affecting older Victorians, including housing security, elder abuse prevention and support, and healthcare equity for an ageing population.

“It is crucial that we acknowledge that family violence affects people of all ages and backgrounds. We hope that investment in family violence broadly, will also apply to the many Victorians living with, or recovering from elder abuse,” Mr Rogers said.

“We’re keen to continue to work with government and others in the sector so all older Victorians can age with dignity, security, and equal opportunity.”

Workforce

The state government has shown its support for nurses, midwives and carers with a $95m investment into creating 1100 more positions for nursing and midwifery students, supporting nurse practitioners in high‑demand areas – such as aged care, mental health primary care, and urgent care settings – and providing more opportunities for enrolled nurses to train as practising nurses within their workplace.

Following the successful trial of the Community Pharmacy Pilot, $18m will be invested into enabling pharmacists to treat more people.

This pilot expanded the role of appropriately trained community pharmacists, allowing them to provide certain Schedule 4 medications without the need for a prescription, including the resupply of the contraceptive pill, treatment for uncomplicated urinary tract infections, and access to travel health advice and vaccinations.

Associate Professor Steven Walker, director of Experiential Development and Graduate Education at Monash University’s Faculty of Pharmacy and Pharmaceutical Sciences, supported the extra funding for the program.

“We very much welcome this announcement, which is both a significant and appropriate development for the pharmacy profession in Victoria. As the medicine experts, pharmacists are well positioned to make person-centred prescribing decisions, which ultimately benefits patients.

“Education is central to expanding the conditions pharmacists can treat. As a world leader in pharmacy education, Monash University is well placed to deliver comprehensive post-graduate education to support pharmacists to take on this prescribing role.

However, the Royal Australian College of GPs (RACGP) has issued a warning that expanding pharmacy prescribing powers may become a threat to patient safety. 

“Patient safety must come first ahead of pharmacy owner profits,” RACGP Victoria chair Dr Anita Munoz said.

“[Tuesday’s] announcement is deeply disappointing and a step backwards in achieving the best care outcomes for patients across Victoria.”

Dr Munoz said the program is “a cheap, easy fix,” and that patients are better off consulting with their regular GP. She urged the Victorian government to instead invest in better access to medical care in all communities.

“Expanding pharmacy prescribing powers also fragments care, leading to a less well-connected health system and poorer patient health outcomes,” Dr Munoz said.

“GPs value the work of pharmacists in communities across Australia, and the College has consistently backed measures such as funding for practices to add more non-dispensing pharmacists as part of a sensible, GP-led multidisciplinary care approach. However, pharmacists don’t have the training required to properly diagnose medical conditions, and this raises the risk of inappropriate treatment, as well as misdiagnosis.”

Hospitals

The Victorian government is investing $9.3b into the state's hospital system, with $634.3m to build or expand nine new hospitals including Footscray Hospital, Frankston Hospital, and Maryborough and District Hospital.

There will also be a $48.2m investment into expanding the network of state-run Urgent Care Clinics and Community Pharmacy programs across the state.

The budget has allocated $57m for upgrades to the Royal Melbourne Hospital, with funding also invested to redevelop regional emergency departments, including Swan Hill District Health, Albury Wodonga Health, and University Hospital in Geelong.

Finally, three new Community Hospitals will open in Craigieburn, Cranbourne and Phillip Island for the delivery of day surgery, dialysis, chemotherapy, dental, allied health, mental health, medical imaging, pathology, urgent care and women’s and children’s health services.

Emergency care

The capacity of the Victorian Virtual Emergency Department (VVED) will “almost” triple with a $473m investment.

The program, a first of its kind in Australia, delivers free urgent care to more than 600 Victorians per day. This latest investment is set to dramatically increase capacity, enabling the service to handle 1,750 calls a day by 2028‑29, or more than 600,000 calls every year.

Premier Jacinta Allan called the VVED a “miracle.”

“It has helped more than half a million people, and we’re almost tripling its capacity so more families can get free, 24/7, world-class health care,” she said.

“We’re focused on what matters most: a health system that’s free and easy to access, a public service that you and your family can rely on.”

Alongside the VVED boost, the budget included $167 million to improve the state's ambulance response times.

This will be achieved with funding for the improvement of patient flow in EDs, $28m for more beds at high‑demand hospitals and $27m to expand and upgrade Short Stay Units.

Mental health

The budget has zeroed in on mental health with a $7.5m investment into the Hospital Outreach Post-Suicidal Engagement program, LGBTIQA+ Aftercare support, and Strong Brother Strong Sister and Yarning Safe N Strong for Aboriginal Victorians.

A further $34.5m will be invested in the state’s network of Mental Health and Wellbeing Locals, which provides free mental health care without a referral or Medicare card.

Twenty-five million will support suicide prevention programs for Victorians disproportionately impacted by suicide, including LGBTIQA+ communities, young people who identify as trans or gender diverse, people in regional areas, and a $1m investment into the Victorian Equal Opportunity and Human Rights Commission to help eliminate harmful practices such as conversion therapy.