08.05.2024Federal and Victorian Budget 2024-25 Responses

We encourage you to read our full response to the Victorian Government State Budget 2024-25 here.

In the latest budget 2024-2025, the government has a clear focus on helping Victorian families doing it tough in challenging economic conditions. Its marquee $400 School Saving Bonus initiative will help cover the costs of children’s schooling, while further initiatives that help keep school children engaged and active, will help parents save time and avoid incurring additional out-of-pocket costs.

Victoria’s healthcare system has also been given a boost with a $11 billion multi-year injection, plus an extra $1.8 billion to be spent on our hospitals and health facilities.

Questions remain as to whether enough is being done to help Melbourne prepare for an anticipated population of 9 million by mid-century. Our pre-budget submission highlights the range of challenges Melbourne faces as it welcomes more residents.

As the government tightens the purse strings on transport infrastructure spending to help stabilize rising public debt, as well as respond to the challenging economic conditions, we need to consider ways to further optimise the city’s existing transport infrastructure. The Committee was disappointed to see that the Melbourne Airport Rail project has been delayed for four years. We have been advocating for a train link from the CBD to the airport for many years and we will continue to strongly advocate for a train link that complements the existing SkyBus offering.

The Big Housing Build continues apace, but with suboptimal market conditions for private developers, delivering the targets outlined in the government’s Housing Statement may prove difficult to achieve. More work is needed to turbocharge medium-density housing throughout the city.

These challenges could be effectively addressed with the help of a comprehensive, strategic plan that has appropriate enforcement mechanisms. With the Committee’s Benchmarking Melbourne 2024 report showing that Melbourne is sprawling faster than its peer cities and its footprint is the fourth largest amongst that group, preventing further urban expansion will deliver substantial economic, financial, connectivity, environmental and social benefits. The Plan Victoria process presents a great opportunity to this end.

Federal Treasurer, Jim Chalmers, handed down the Albanese Government’s third budget last month, describing it as a “budget for every Australian.”

The Treasurer walked a tightrope, attempting to help ease the cost-of-living challenge facing many Australian households, while keeping inflation in check. A $300 electricity bill rebate for every household – equating to $3.5 billion – is the key relief measure, with other initiatives designed to ease the challenges facing businesses and rent-payers also announced.

The cornerstone of this budget however is the $22.7 billion ‘Future Made in Australia’ (FMIA) project. Signifying a major shift in industrial policy, the government will take a more direct role in Australian priority industries, including clean energy technologies, critical minerals and green hydrogen.

The government also set its sights on addressing Australia’s housing crisis with $6.2 billion worth of new commitments. A significant proportion of this funding will go towards much-needed social housing.

It remains to be seen how much Melbourne will benefit from this budget. While the government’s FMIA policy, along with its continued investment in the housing market, will likely deliver some benefits, questions remain as to whether enough is being done to support Melbourne’s long-term challenges.

With the city’s population growing, and with the freight task and visitor arrivals also growing steadily, a raft of measures is needed to manage this growth and ensure that the city continues to prosper.

While another $3.25 billion was allocated for the North East Link, no other major transport infrastructure funding was provided. This may be prudent given the inflationary pressures and high public debt, but the Committee would welcome a comprehensive plan to guide transport infrastructure investments into the future.

Measures that support the city’s freight and logistics sector would also be welcome in the future, with efficient and timely movement of the city’s freight task crucial to maintaining competitiveness and high living standards, attention is needed in this area.

More than ever, Melbourne needs a comprehensive, strategic plan to manage its growth. Such a plan would prioritise transport and land use integration, and economic development planning. It would also contain mechanisms that enforce its implementation, guiding governments on what infrastructure is needed and when. The Plan Victoria process offers an excellent opportunity to deliver such a vision and should not be wasted.

Visit the websites of some of our members for extensive analyses on the Federal Budget 2024-25:

Bastion Reputation

Corrs Chambers Westgarth

Deloitte

EY

GHD

Hall & Wilcox

SEC Newgate