State Budget critical as Gippsland looks to shift gears after MotoGP loss
As Victoria approaches the next state election, One Gippsland has highlighted the 2026 budget as a critical moment to shift gears and replace the Phillip Island Australian Motorcycle Grand Prix with a new event to save the region’s bottom line.
One Gippsland Chair and Mayor of South Gippsland Shire, Councillor Nathan Hersey, said a new plan was needed to maintain the region’s leading destination status.
“When an event of that scale is lost, we are not just losing bikes off a track, we are losing many economic multipliers that impact businesses, small and large and are facing a deficit of global attention that has drawn international visitors to Gippsland,” Cr Hersey said.
Mayor of Bass Coast Shire and Member of One Gippsland Councillor Rochelle Halstead said the loss of MotoGP has left a gap that will reverberate across the whole regional economy.
“For nearly 30 years, the MotoGP has been one of the biggest drivers of visitation and economic activity in Gippsland,” Cr Halstead said.
Independent analysis shows the event contributed $54.6 million in economic benefit to Victoria, including $29.4 million in direct local expenditure, supporting 284 jobs and generating $37.1 million in global media exposure.
With more than 10.5 million visitors annually and a $2.5 billion visitor economy, Gippsland is a powerhouse of regional tourism, but Cr Hersey said the region is now entering a phase where new interventions are needed.
“For a region that plays a critical role in keeping Victoria fed and powered, the loss of an event with this level of economic reach has consequences well beyond the track. Gippsland deserves a serious plan to replace what has been taken,” Cr Hersey said.
“This is the last state budget before the election, and State spending decisions today can absolutely shape what the next few years will look like for the Gippsland economy,” Cr Hersey said.
“There’s an opportunity here to respond to the loss of MotoGP with a clear plan for what comes next, and Gippsland is well placed to work with the government on solutions.”
One Gippsland has prepared a pre-budget submission for consideration by the State Government and Opposition.
A key plank in the submission is ‘The Destination Gippsland: Tourism, Culture & Country Investment Package’, which sets out a pathway to activate major events, cultural tourism and nature-based experiences into a unified growth strategy. Key priorities include:
Securing a new major, internationally recognised anchor event for Phillip Island;
Expanding the Gippsland Regional Events Fund (Stage 2) to drive year-round visitation and overnight stays;
Investing in First Nations cultural tourism, including the Nanjet Gunaikurnai Cultural Tourism Project (Gunya Yanakie – Nanjet Brataualung); and
Strengthening nature-based tourism infrastructure to improve the visitor experience.
The package is designed to grow visitation, extend length of stay and support regional jobs while promoting and protecting the natural and cultural assets that underpin Gippsland’s appeal.
The package is designed to grow visitation, extend length of stay and support regional jobs while promoting and protecting the natural and cultural assets that underpin Gippsland’s appeal.
“We’re not starting from scratch, Gippsland has all the fundamentals to continue to be a world-class destination,” Cr Hersey said.
“This Budget is an opportunity to make sure regional economies like ours are well-positioned for the next lap around the sun.
“With the right investment, Gippsland can not only recover from this loss, but come back stronger.” Cr Hersey concluded.
The One Gippsland 2026–27 Pre-Budget Submission outlines coordinated investment priorities for the region. Other key priorities include:
● Gippsland Renewable Energy Transition Package: a package designed to ensure the region will benefit from the transition as well as become a centre for renewables and new energy excellence;
●. Freight Connectivity & Safer Roads: a package for freight and supply chain resilience and a regional roads maintenance package to improve safety. This includes $60 million for the Sale Alternative Truck Route, $35 million for the San Remo Infrastructure Improvements, $1.2 million for planning and design of the Leongatha Heavy Vehicle Alternative Route Stage 2 and $2 billion for the Regional Roads Maintenance Package.
●. Destination Gippsland: Tourism, Culture and Country: investment in tourism infrastructure, events and cultural connection and natural asset protection.
●. Housing and Liveability: investment in unlocking housing supply and community infrastructure through enabling infrastructure, acceleration of social and workforce housing solutions and unlocking of residential land supply.
