By STEFAN BRADLEY

 

AN operating surplus, with a mountain of debt – it’s a challenging story for the state government’s 2025/26 State Budget.

While Treasurer Jaclyn Symes for her first budget was keen to emphasise the state’s first surplus in a decade, the size of Victoria’s debt incurred and the interest that has to be paid has proven to be a massive challenge for the state government.

At the 2025/26 State Budget lock-up in Melbourne – attended by the Latrobe Valley Express and other media organisations – Ms Symes said there was “no new taxes” revealed in the budget. And that’s because a new tax was previously announced, which was of course the emergency services levy, which has been known about for months, and recently passed in state Parliament.

Protests against this new levy took place at state Parliament and a bit closer to home in Morwell. The tax is possibly the most controversial measure in a state budget for Gippslanders since the closure of the timber industry was moved forward.

There’s also an increase to the congestion levy imposed on parking in parts of inner Melbourne to encourage public transport use. Nearly every major thing in this budget was previously announced.

The two previous state budgets under Ms Symes’ predecessor, Tim Pallas attempted to rein in spending with cuts and taxes; this one appears to have partly moved away from that, which may be because an election is next year and the government is down in the polls.

“I want my first budget to give people hope,” Ms Symes said, which is a sharp contrast from the doom and gloom of the last two budgets.

The slogan they chose is ‘Focused On What Matters Most’, and it’s possible the state has taken cues from federal Labor’s successful election campaign that culminated in a landslide victory on May 3. What the state government is focusing on is similar issues of cost-of-living relief, healthcare and education.

“We want young Victorians to have everything they need to succeed. It’s why this Budget invests more than $44 million to upgrade schools across the Eastern Victorian Region, including more than $500,000 for upgrades at Araluen Primary School in Sale,” Member for Eastern Victoria Tom McIntosh said in a media release.

Mr McIntosh was keen to talk about public transport, a key issue for those in the Latrobe Valley.

“In Gippsland, this budget will invest $42.8 million to deliver a regular 40-minute interpeak service across the day, between Traralgon and Southern Cross – realising the benefits of the Gippsland Line Upgrade,” he said.

“But for parents in the region, every dollar counts. It’s why we’re making public transport free for Victorians under 18, delivering savings of up to $755 a year – per child. ”

The scheme begins January 1, 2026.

“Costs can also add up for seniors. It’s why with this budget; we’re also making statewide public transport free for Victorians aged 60 and over on weekends,” Mr McIntosh said.

“From January 1, 2026, this change will help Victorians with a Seniors Card in eastern Victoria visit the grandkids or experience even more of our state – without the extra expense.”

The Community Pharmacy Pilot has become a permanent investment; $18 million has been budged for pharmacists to treat Victorians without needing to see a GP.

Leader of the state Nationals and Member for Gippsland South, Danny O’Brien, said the budget ignored the cost-of-living crisis and inflicted further pain on regional Victorians.

“Labor is whacking us with a great big new emergency services tax that the budget now shows will cost us all an extra $3 billion in coming years,” Mr O’Brien said.

“The Nationals and Liberals will scrap this tax if elected next year to ease the burden on regional Victorians.

“Debt gets worse and we will be paying $28.9 million per day in interest – money that could be going to boosting regional hospitals, investing in schools and fixing our roads.

“This budget yet again shows that Labor can’t manage money and regional Victorians are paying the price.”