Victoria State Budget 2006-07

The Victorian Economy is forecast to grow by 3.25 per cent in 2006-07, continuing the State’s strong record of growth.

This budget forecasts an operating surplus of $317 million in 2006-07 and surpluses averaging $316 million over the following three years, maintaining Victoria’s triple-A credit rating.

Infrastructure

This budget includes a $4.9 billion capital works program, including;

  1. $200 million to renew the Regional Infrastructure Development Fund.
  2. $737 million over four years to improve the Monash-West Gate corridor
  3. more than $850 million to extend and improve bus, train and tram services, improve rail safety and upgrade rail stations.
  4. $345 million to upgrade arterial roads across the State.
Tax

In the interests of further reducing the cost of business, this budget outlines measures worth $1.4 billion over the next four years, including;

  1. payroll tax cut from 5.25 per cent to 5 per cent over three years
  2. land tax relief worth $167 million over four years
  3. reducing the middle rates of land tax by 20 per cent
  4. reducing the top land tax rate to 3 per cent from 2006-07
  5. increases in land tax liabilities capped for a further year
  6. indexation factors eliminated
  7. WorkCover premiums reduced by 10 per cent, saving business $170 million a year.
Tourism

The budget allocates $73 million in funding to boost the Victorian tourism and events industry.  This includes;

  1. $52 million to attract new events to Victoria
  2. $8 million to attract major business events to the new Melbourne Convention Centre
  3. $12 million to market Melbourne and Victoria in interstate and international markets.
Schools and Skills

This budget announces an investment of more than $1 billion in schools and skills.  This includes;

  1. a new $300 School Start Bonus for every Victorian child starting Prep or Year 7
  2. an additional $448 million in education and training infrastructure, including nine new and replacement schools and $58 million to buy land for 11 new schools in Melbourne’s growing outer suburbs
  3. $20 million to commence major regeneration projects across 25 school sites
  4. $50 million to fast track school maintenance
  5. a new $500 Trades Bonus to encourage young people to finish their apprenticeships
Water

This budget provides an additional $160 million for vital water projects, including;

  1. $30 million towards building a new pipeline to secure Bendigo’s water supply and the future of surrounding irrigators
  2. $50 million in contributions to the Gippsland Water Factory
  3. $50 million to the Wimmera Mallee Pipeline
  4. an extra $25 million for the Murray Darling Basin Commission.
Health

Funding for health in this budget include;

  1. $87 million to fight obesity, promote health and fitness, and tackle chronic conditions, such as diabetes.
  2. funding for the redevelopment of the Royal Children’s Hospital.
  3. $498 million to treat an additional 37 000 hospital patients in 2006-07 with a focus on areas under the greatest strain, such as intensive care, maternity services and neonatal care.
  4. $10 million to reduce waiting lists
  5. $114 million to extend diversion programs to reduce hospitalisations for people with chronic and complex conditions.
A Fairer Victoria

The 2006-07 budget provides a further $818 million for A Fairer Victoria – with a strong emphasis on giving Victorian children the best start in life.  This includes;

  1. $268 million to protect vulnerable children, improve the wellbeing of children in care, deliver more early intervention services for families and employ more than 100 extra child protection workers.
  2. $10 million to provide greater support for disengaged young people
  3. $25 million to boost services for children in Melbourne’s fastest growing areas
  4. $170 million to improve mental health services
  5. $67 million for additional disability support services
  6. $62 million to continue to work with Indigenous Victorians to tackle disadvantage and strengthen local communities.
Community safety

The budget’s community safety program includes;

  1. $53 million to continue the upgrade of police stations and courts
  2. $109 million to fight terrorism and organised crime
  3. more than $520 million for the next phase of the road safety strategy.
Provincial Victoria

The budget provides more than $800 million for provincial Victoria, including new investment in schools, roads and health and community services and to support regional industries.  This includes;

  1. $100 million for a new Provincial Victoria Growth Fund
  2. an $11 million package of support for the dairy industry
  3. $27 million for the energy and resource sector
  4. a $27 million boost for regional tourism
  5. an extra $1.5 million to support Victoria’s horticulture industry
Other
  1. $230 million to support growth in Victorian medical research and life sciences through the Healthy Futures statement (released in April)
  2. $8.9 million in increased funding to Victoria’s film, TV and digital media industries
  3. $15 million to boost research in information and communications technologies
  4. $1.4 million for the APEC Regional Finance centre