Federal budget delivers Victoria's largest ever Commonwealth allocation of $18.6 billion

Victoria has received its largest ever federal budget allocation of $18.6 billion, spanning the Suburban Rail Loop co-investment, the Housing Australia Future Fund delivery program, defence infrastructure, and expanded health and education funding that represents the single largest Commonwealth-state financial partnership in Victoria's history.

Treasurer Jim Chalmers said Victoria's exceptional allocation reflected both the state's project pipeline and the Commonwealth's recognition that the nation's most populous state had significant unmet infrastructure investment needs after a period of state-financed mega-project delivery that had stretched the state budget. "Victoria has been building its own future with its own money for too long. The Commonwealth is stepping up," he said.

The Suburban Rail Loop commitment of $5.6 billion from the Commonwealth marks the federal government's largest single infrastructure co-investment in the project, bringing the total government funding commitment to $31 billion and providing the financial certainty needed for the construction contract awarded this year to proceed without disruption. Victorian Premier Jacinta Allan said the commitment locked the loop in as a certainty that no future government could walk away from.

Housing programs account for $2.8 billion of the Victorian allocation, the highest state share of the national housing investment program, reflecting Victoria's above-average housing affordability stress and the state government's advanced project pipeline through Homes Victoria. The Commonwealth funding is tied to delivery milestones, with quarterly reporting to the National Housing Finance and Investment Corporation.

The Victorian allocation has been welcomed across party lines in the state parliament, with even the opposition acknowledging the federal investment represented a significant positive for the state budget position.

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