Victorian 2010 Budget Overview

3rd May 2010

Victorian Treasurer John Lenders delivered his government’s 11th budget today.

Victoria’s economy is forecast to grow by 3.25 per cent in 2010/11, while the Treasurer announced a surplus of $872 million in 2010/11.  This is forecast to average $1.2 billion over the next three years.

Further information is available at http://www.budget.vic.gov.au 

Major tax and spending announcements are set out below.

Tax cuts

§  Payroll tax rate will be cut from 4.95% to 4.9%, effective from 1 July 2010.  This is forecast to result in a $193million saving for business.

§  WorkCover premiums will be cut by 3.5% -- a forecast saving of $240million for business.

Health

§  $407.5 million to redevelop Box Hill Hospital, with more than 100 extra operating theatres and a new, expanded emergency department;

§  $33.6 million for expanded capacity at the Geelong Hospital and to commence planning and purchase land for a community hospital in Geelong’s southern suburbs;

§  $25.8 million for the redevelopment of Coleraine Hospital;

§  $25 million for Stage 2 of the redevelopment of Leongatha Hospital;

§  $13 million towards the new $55 million Ballarat Regional Integrated Cancer Centre, funded in partnership with the Commonwealth;

§  $10.9 million to expand acute and intensive care services at Monash Children’s;

§  $9.1 million to redevelop and relocate the MonashLink Community Health Service branch in Glen Waverley;

§  $7.4 million for two additional catheterisation laboratories at Northern Hospital;

§  $10 million to redevelop allied health facilities at Royal Melbourne Hospital and $5 million to support increased surgical capacity and open 10 new Intensive Care Unit beds at the Alfred, Austin, St Vincent’s, Northern, Frankston and Geelong Hospitals;

§  $90.5 million to complete the Sunshine Hospital expansion and redevelopment;

§  $68.9 million for Stage 2 of the Olivia Newton-John Cancer & Wellness Centre at the Austin Hospital, providing a clinical services building and consolidating radiation and oncology services and additional cancer research floors;

§  $35 million to replace essential medical equipment in hospitals, and a further $20 million for critical hospital and health infrastructure projects.

Industry

§  $16.4 million over four years for the Transition to a Global Future initiative, including a new Competitive Business Fund, new investment attraction initiatives and a short-term assistance package to help Victorian exporters manage a high Australian dollar; and

§  $2 million to continue planning for the Metropolitan Freight Terminals Network servicing current and future freight areas of intensive industry and related freight and logistics activity. 

Transport

§  $807.6 million of funding for 50 new trams and the establishment of a new tram maintenance and storage depot at Preston announced earlier this year;

§  $129.2 million to upgrade regional roads, including $76.9 million to continue the Geelong Ring Road project (Section 4C Surf Coast Highway Connection);

§  $37.7 million towards the total project cost of $188.5 million for four new train stations in growth areas, with construction to start on all stations before the end of this year;

§  $66.5 million to upgrade key routes in Melbourne's outer suburbs;

§  $83.7 million for 20 metropolitan train stations to be upgraded to Premium status. This includes funding for 100 staff to be at Premium Stations from first to last train seven days a week, making the system safer and easier for approximately 250 000 passengers per week;

§  $19.3 million for noise walls along the Monash Freeway;

§  $759 million construction cost of Peninsula Link;

§  $230.6 million in Commonwealth and Brumby Labor Government funding for the duplication of Clyde Road, adding an extra lane in each direction between High Street and Kangan Drive, and the upgrade of 22 kilometres of Princes Highway East between Traralgon and Sale. The State share is $60.6 million; and

§  $4.3 billion for the Regional Rail Link, the biggest addition to the rail network since the City Loop – a brand new rail line through Melbourne’s growing west, two new stations at Wyndham Vale and Tarneit and stand-alone tracks for trains from Geelong, Ballarat and Bendigo to improve capacity and reliability.

Roads

§  $129.2 million to upgrade regional roads, including $76.9 million for Geelong Ring Road (Section 4C Surf Coast Highway Connection);

§  $66.5 million to upgrade key routes in Melbourne's outer suburbs;

§  $230.6 million program of major projects being delivered in partnership with the Commonwealth Government. The State share is $60.6 million;

§  $22.6 million for additional maintenance for roads across the State;

§  $19.3 million for noise walls along the Monash Freeway; and

§  $21 million for planning and early works on the Truck Action Plan and WestLink from the Brumby Labor Government’s $38 billion Victorian Transport Plan as announced last year, including a $6.2 million Commonwealth contribution.

Education

§  $64.3 million for 11 school modernisation projects – including new libraries, gymnasiums, classrooms, multi-purpose science and ICT centres;

§  $107 million for nine school regeneration projects to revitalise school communities and provide modern facilities for new and better teaching and learning;

§  $10.5 million to help secure the future of six small rural schools;

§  $34 million to construct a new Year 10-12 school in Tarneit and continue the construction of three other new schools.

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