A Budget with welcome regional investment, but cost-of-living relief depends on where you live

One Gippsland has welcomed initiatives in the Victorian Government's 2026—27 State Budget that align with our advocacy and aim to improve education and health outcomes across the region.

Chair of One Gippsland, Cr Nathan Hersey, said the investments were encouraging for a region that is central to Victoria's food production, that is leading the energy diversification for the state and home to some of the Victoria's fastest-growing communities.

“The announcement of the TAFE Gippsland Centre of Excellence in Morrell is a major step forward. It will ensure our local workforce and young people are equipped with the skills needed for the jobs of the future,” Cr Hersey said.

“We welcome investment in the existing West Gippsland and Wonthaggi Hospitals at a time when the region is facing growth pressures,” Cr Hersey said.

“We are also pleased to see funding allocated for regional roads, including planning for problematic bottlenecks particularly in South Gippsland and Baw Baw shires,” Cr Hersey said.

“One Gippsland is disappointed however that there was no tourism package to replace the loss of the Moto GP, an event which brought significant economic value to the whole region,” Cr Hersey said.

“This is a clear oversight for our region,”Cr Hersey said.

The State budget outlined a range of state wide initiatives aimed at addressing cost-of- living pressures including free public transport and registration discounts, support for energy bills, free kinder, urgent care clinics and social housing.

“These cost of living initiatives will be welcomed by many families doing it tough, but if you live in a regional community, cost-of-living relief will depend heavily on where you live,” Cr Hersey said.

“If you do not have reliable public transport nearby, if you cannot access childcare, if there are limited housing options, or you cannot get a timely Medicare-rebated GP appointment, then statewide relief measures do not reach you in the same way,” Cr Hersey said.

“With interest rates rising again yesterday and regional households already carrying higher transport and service-access costs, the budget needed to address this service gap,” Cr Hersey said.

“As we move to the state election, One Gippsland will continue our pitch to the Government and Opposition for the remaining investment outlined in our pre budget submission that will get our regional economy and Victoria back on track,” Cr Hersey concluded.

Key Budget Announcements

Roads

Gippsland

  • Planning funding for the Leongatha alternative freight route and Strzelecki Mirboo North and Leongatha (Boorool) and upgrades to Princes Highway East/Davey Drive/Waterloo Road in Trafalgar.

  • Funding to improve roads and bridges in regional Victoria including rehabilitation of the San Remo Bridge (continuation of 25/26 budget) and safety upgrades on the Princes Highway East in Lakes Entrance and Mallacoota- Genoa Road.

Statewide

  • $1.04 billion to rebuild, repair and resurface roads across Victoria with with 70% of the funds going to the regions.

Skills and Training

Gippsland

  • Funding for the Morwell Renewable Energy TAFE Centre for Excellence, including a renewable energy digital training facitlity.

Statewide

  • Up to 80 priority courses including 15,000 free TAFE places.

  • Improving the skills and capacity of the VET workforce in clean energy, manufacturing and the construction sectors.

Schools

  • Funding to upgrade Warragul North Primary School.

  • Targeted works for Stratford Primary School.

Transport

Gippsland

  • A boost regional train services including a 40-minute interpeak services to and from Traralgon.

Statewide

  • A 20% rebate on registration costs of up to $186 for people with one car and $372 for people with two cars.

  • Halving the price of public transport until 1 January 2027.

Disaster and Resilience

Gippsland

  • New Country Fire Authority Station at Mirboo North and plan and funding for a station design at Lakes Entrance.

Regional Health

Gippsland

  • $65 million in upgrades to the exisitng West Gippsland Hospital and the Wonthaggi Hospital.

  • Funding for the second stage of the Phillip Island Community Hospital.

  • Continued funding for Urgent Care Clinics in Baw Baw and La Trobe.

Housing

Statewide

  • $860 million across the state for 7,000 additional social housing homes over the next decade.

  • $88 million for housing enabling infrastructure to increase housing supply by 1300 houses in regional Victoria.

 

Audio Grab - Energy & TAFE Gippsland - Cr Nathan Hersey - One Gippsland Chair and Mayor of South Gippsland Shire Council

Audio Grab - Housing - Cr Nathan Hersey - One Gippsland Chair and Mayor of South Gippsland Shire Council

Audio Grab - MotoGP gap - Cr Nathan Hersey - One Gippsland Chair and Mayor of South Gippsland Shire Council

Collective Position