Share

Local Government reply to State Budget: a missed opportunity to invest in local communities

Publish date:

Today the State Government delivered its 2026/27 budget, and it's a budget that misses the opportunity to invest in initiatives that empower councils to deliver on shared state priorities that deliver immediate community benefits for Victorians.

In the lead up to state election, the MAV will continue to call for sustained state investment in essential enabling infrastructure to support housing delivery and community wellbeing, community cohesion initiatives, and funding to secure the financial future of Victoria’s local government sector.

The MAV welcomed the previously announced uplift in spending on State Government-owned roads, in alignment with our election campaign ask. However, councils across the state know it won’t be enough to improve the safety and productivity of the state’s arterial road network.

While the budget has delivered some important funding to local government programs, it leaves big questions about important policy areas – and does not address the fundamental financial constraints facing the local government sector, including funding for services like maternal and child health and kindergarten infrastructure.

As a key delivery partner, the local government sector is pleased to see a number of other commitments, including:

  • $48.1m to boost child safeguarding: answering recommendations from the MAV’s submission to the Government’s Immediate Review into Child Safety
  • $16.8m for 26/27 for the School Crossing Supervisors program: though we continue to call for an ongoing commitment, beyond year-by-year announcements
  • $13m to triple number of Tobacco Inspectors and support tough new shop closure powers: continuing this important work
  • $5.4m across two years for the Multicultural Seniors Support program: a specific advocacy ask of the MAV.

In the area of planning reform, the State Government appears to expect faster planning decisions on technology it hasn't budgeted to upgrade - how will the $11m investment (over 2 years) to implement the Government's planning reforms stretch to either deliver a centralised planning permit system, or fund expensive planning system upgrades across 79 councils?

Over the coming days the MAV will do a deep dive into the state budget to further interrogate the impact on local communities and the local governments that support them.

Further resources:

For more: Sean Rogasch | 0497 808 421 | srogasch@mav.asn.au