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New funding targets soaring living costs

As the cost of living continues to put pressure on families across Victoria, the 2025 State Budget has delivered a message of hope, with a record $2.3 billion in relief aimed directly at easing financial stress, Premier Jacinta Allan said the focus is on what matters most.

“This Budget is focused on what matters most – delivering real help with the cost of living, backing frontline services and staff, and ensuring that every dollar makes a real difference to Victorian families,” she said.

One of the biggest announcements is free public transport for children under 18, set to begin from 1 January, 2026. The change will save families up to $755 a year per child and will make Victoria the first state in Australia to introduce this measure. Seniors will also benefit, with free public transport on weekends for all Victorians with a Seniors Card.

The Budget includes new investments in healthcare, including $18 million to allow pharmacists to treat more conditions without needing a GP appointment. This includes asthma, ear infections, smoking cessation, and more, with all consultation costs covered by the government.

Dandenong Ranges Emergency Relief Service chief executive officer, Tania Bevan said these kinds of support measures are desperately needed, as more people turn to emergency services just to get by.

“The thing that we noticed over the last few years is that we have many more people seeking assistance where there’s actually two income households,” she said.

“Once upon a time, the clients that we saw were mainly Centrelink recipients or people who had just lost a job. But now we’re seeing people with two full-time jobs who just can’t make ends meet.”

Ms Bevan said people are struggling most with the rising cost of food, utilities, and high rent.

Insurance is another growing issue, particularly in disaster-prone areas like the Dandenong Ranges.

“Many people don’t insure their cars, and people who own houses are no longer keeping them insured,” she said.

“It’s a very big risk, especially in areas like ours where storms and bushfires are real threats.”

The Budget provides a $100 Power Saving Bonus for concession card holders, just in time for winter bills.

There’s also $30 million to help 27,000 homes install electric heat pumps and solar hot water systems, which could save up to $400 annually. An extra $12 million will go towards insulation upgrades to help households reduce heating costs.

Food relief services will see a boost, with $18 million supporting organisations that help feed Victorians in need. That includes regional FoodShares, the Community Food Relief Program, and Foodbank’s GROW program, which redirects surplus farm produce to families doing it tough.

To help with kids’ costs, the government is increasing the Camps, Sports and Excursions Fund from $154 to $400 for primary students, and from $256 to $400 for secondary students. The Get Active Kids vouchers will also continue, providing up to $200 for sport-related expenses for eligible families.

Free kinder for three- and four-year-olds will continue, saving families up to $2600 a year per child.

Ms Bevan said the growing number of working families needing support is one of the most worrying signs of how deeply the crisis is affecting Victorians.

“If a double income household is not making ends meet, what hope do people have who are on Centrelink?” she said.

“It’s not getting better, it’s getting worse.”

On some days, the Dandenong Ranges Emergency Relief Service sees up to 12 people come through their doors for help, many of them new to needing support.

Premier Allan said this Budget is about delivering real and timely help.

“From free PT for kids to help for those doing it hardest – this is a Budget that delivers cost of living help when it matters most,” she said.

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