Victoria’s 2025–26 State Budget delivers a promising $600 million surplus alongside increased investment in health, education, and infrastructure. This budget reflects a steady financial recovery and a commitment to supporting essential services. While the headlines are encouraging, there are some important details for taxpayers and business owners to consider.
You probably noticed the biggest topic this morning was not the budget itself, but the Fire Services Property Levy.
Partner Max Basile says it’s important to note “this levy isn’t technically part of the budget. It was passed through State Parliament last week, just before the budget was handed down.” The levy will be collected through council rates, and is expected to bring in around $600 million, roughly matching the budget’s headline surplus. So, while the government is keen to say no new taxes were introduced in this budget, property owners including farmers and businesses with commercial properties will still feel the impact.
We’re keeping a close eye on this levy and will share a detailed update once the finer details become available.
No new taxes announced in the 2025–26 Budget
The government confirmed that no new taxes were introduced as part of this year’s budget. This means there are no additional tax rates or new tax categories for individuals or businesses. However, the previously mentioned Fire Services Property Levy, which is separate from the budget, will still affect property owners’ expenses.
$150 million Business Investment Fund
The budget includes a $150 million Business Investment Fund intended to encourage innovation and economic growth. The fund includes a $50 million regional stream to support economic growth and job creation across regional Victoria. Additionally, the government has reiterated plans to reduce red tape affecting businesses, though detailed timelines and measures have not yet been specified. We look forward to providing more details on what this fund looks like for business owners once those details have been released.
Cost of Living Measures
The Victorian Government has introduced several initiatives aimed at easing the financial pressures faced by families and individuals, the highlights being:
- Continuing the Energy Assistance Program to help Victorians reduce their energy bills.
- Free public transport for all kids under 18, saving families up to $755 a year per child.
- $100 Power Saving Bonus for eligible Victorian concession card households.
- $859 million to continue Free Kinder, saving families up to $2,600 a year – per child – on fees, and helping more women return to work.
Big Spend on Infrastructure
There’s a solid focus on transport projects, like $727 million for the Metro Tunnel and $4.1 billion to upgrade Sunshine Station. This could open opportunities for businesses in construction, logistics and supply chains.
Final Word
Overall, the 2025–26 Victorian State Budget highlights a positive financial position with a focus on essential services and supporting economic growth. While there are no new taxes within the budget itself, property owners should be aware of the separate Fire Services Property Levy and its potential impact. Businesses may also benefit from new investment funds and regulatory reforms as more details emerge.
We will continue to monitor developments and provide updates to help you navigate these changes. If you have any questions about how the budget may affect you or your business, please do not hesitate to get in touch.
