Budget delivers record boost for frontline service delivery

The Victorian Budget 2025–26 delivers $11.1 billion to strengthen Victoria’s public health system - supporting frontline staff, expanding access to care, and improving health outcomes across the state. This includes a $9.3 billion boost for hospitals.

The additional funding means Victoria is investing a record $31 billion in our healthcare system this year.

The Budget focuses on delivering practical support for services that communities rely on, ensuring Victorians can access timely, high-quality care close to home.

Supporting hospitals and expanding capacity

The budget supports expanding and operationalising hospitals, and supporting workforce across Victoria to keep delivering world-class care. This includes:

• $634.3 million to open and operationalise nine new or upgraded hospitals, including the new Footscray Hospital, Frankston Hospital redevelopment, Maryborough and District Hospital, and community hospitals in Cranbourne, Craigieburn, and Phillip Island Community Hospitals.
• Additional investments to modernise and future-proof our hospitals include:
• $57+ million for essential building upgrades at the Royal Melbourne Hospital
• $61.8 million for the Engineering Infrastructure Replacement Program
• $52.3 million for the Medical Equipment Replacement Program.
• An additional $95 million will support nurses, midwives, and healthcare workers through clinical placements and professional development at all stages of their careers.

Better, faster care in an emergency

To help more Victorians access emergency care faster:

• $437 million to expand the Victorian Virtual Emergency Department, increasing its capacity to 1,750 calls per day by 2028–29
• $48.2 million will support Urgent Care Clinics and expand the Community Pharmacist Program, allowing pharmacists to treat a broader range of conditions for free.
• $84.2 million will strengthen rural and regional ambulance services through 15 dual paramedic crews, four peak-period units, and four 24-hour services
• $58.4 million will improve patient flow through emergency departments.

Expanding mental health and wellbeing care

Funding in this year’s Budget will give Victorian mental health services the resources they need to care for more Victorians and focus on prevention and early intervention, especially for young people and our regional and rural communities.

Key investments include:

• $34.5 million to expand Mental Health and Wellbeing Locals, with seven new locations joining the existing 15 sites. These services provide free care without a referral or Medicare card for all Victorians aged 26 and over
• $48.5 million for early intervention programs like the Perinatal Emotional Health Program, Rainbow Door, Responder Assist, Koori Mental Health Liaison Officers and more
• Over $300 million to maintain access to mental health beds, across emergency, hospital, and in-home settings
• Continued rollout of the Parkville Youth Mental Health and Wellbeing Service
• Opening of three Youth Prevention and Recovery Care (YPARC) services in regional areas from July 2026
• $47 million for workforce development including junior psychiatry rotations and registrar training
• $10.1 million to support lived experience and peer-led services, including young carers through the Satellite Foundation and consumer leadership through the Victorian Mental Illness Awareness Council
• $7.5 million for suicide prevention initiatives like HOPE, Yarning Safe n Strong, Strong Brother Strong Sister, and LGBTIQA+ aftercare services
• $10 million for the Mental Health Capital Renewal Fund to help services provide safe and therapeutic environments for recovery
• The Budget invests $44 million in alcohol and other drug services to expand the pharmacotherapy program, support outreach programs and strengthen residential rehabilitation services.

Strengthening specialist and community care

The Budget also supports Victorians with complex, chronic or long-term health needs by delivering services that help people live safely and independently in their communities. This includes:

• $22 million to support the Home and Community Care Program for Younger People and provide allied health assessments to support NDIS access
• $2.7 million to enhance the Victorian Aids and Equipment Program
• $34.6 million for public sector residential aged care services to continue delivering high-quality care and $7.5 million to improve facilities across the sector
• $7.6 million to support safer medication management in aged care
• $38.3 million to Local Public Health Units to maintain safe drinking water and operate the thunderstorm asthma early warning system
• $8.1 million to support our world-class cancer services, including the Victorian Cancer Biobank and Monash Partners Comprehensive Cancer Consortium.

Inclusive and culturally safe care

To ensure our health system supports all Victorians, the Budget includes:

• Funding of over $13 million will support Dandenong and District Aborigines Co-Operative Limited fund an upgraded, modern facility to deliver clinical, social and wellbeing services to Aboriginal and Torres Strait Islander people in Melbourne’s south east
• $15.8 million for ten Aboriginal Community Controlled Organisations to provide culturally safe pregnancy and postnatal care
• $15.3 million for targeted LGBTQIA+ health initiatives.

For more information, visit the Victorian Budget website or read the Premier’s media release.