The Albanese Government's Federal Budget has confirmed a significant boost to Victoria's infrastructure pipeline, with major commitments to road and rail projects that will support the state's growing population.
Key infrastructure investments in the Budget include:
- $1.2 billion for suburban road upgrades in Melbourne's north, western and southeast fringe to improve connectivity and safety.
- $7 billion for the Melbourne Airport Rail Link, including an additional $2 billion in federal funding to accelerate early works. This project will integrate airport services with the Metro Tunnel and regional rail network, delivering long-term benefits for passengers and businesses.
Victoria will also receive $26 billion in GST revenue in 2025-26, an increase of $3.7 billion, marking the first time the state will be a net beneficiary of GST distribution. This reflects Victoria's assessed needs, population growth and changes under the 2018 GST distribution legislation.
However, these commitments come at a significant financial cost with official estimates showing gross federal debt will rise from $906.9 billion in 2023-24 to $940 billion in 2024-25.
The Budget falls short in providing real measures for small business, with a missed opportunity to extend the instant asset write-off for SMEs that rely on it to invest in new equipment and to grow.
It also further fails to incentivise apprenticeships, leaving employers to shoulder the cost and will contribute to the ongoing decline in apprenticeship numbers.
In addition, the Government's plan to ban non-compete clauses for nearly three million workers raises concern among businesses. It will add costs as they protect their IP and will most likely see businesses limit employment which will impact the economic output.
We need a plan for growth, a review of our taxation system, support for skilled workers and urgent measures to address lagging productivity. And with federal debt continuing to climb to unsustainable levels, we need to see a plan on how that will be managed.
To be attributed to Victorian Chamber of Commerce and Industry Chief Executive Paul Guerra:
"While we welcome the investment in infrastructure in Victoria, this is clearly an election budget which stops short of providing support for small and medium business to ensure Victoria's future prosperity.
"This Budget provides major infrastructure commitments for Victoria—something our growing population desperately needs.
"It's encouraging to see the Federal Government step up to support vital transport links, as we know the Victorian Government cannot deliver these infrastructure projects alone.
"At a time when we needed a budget to set the nation on a clear path to economic growth, there needed to be stimulus for Victorian small, medium and family businesses. Instead, we got more workplace overreach in the form of banning non-compete clauses, and no money to incentivise business via instant asset write-offs or assistance to hire apprentices.
"This pre-election budget missed the opportunity to establish a vision for the future but instead saddles us with more debt that will limit our ability to invest in the future."
