No shocks from 2025/26 Victorian Budget in Australia
Victoria’s investment pipeline remains modest, with major project funding increasingly reliant on Federal contributions.
There was not much to note in the 2025/26 Victorian Budget, which does little to shift the outlook for building and civil engineering construction in the state.
Victoria currently has the biggest relative debt load of the major states. This is limiting its ability to press ahead on major new investments, with some of the larger announcements in this budget having a Federal co-funding component.
Outside of new and upgraded stations as part of the $4 billion Sunshine Station Transport Superhub and the prison bed expansion program, there were few big-ticket reveals for building. Instead, most of the flagged project funding was to enable the completion of already underway developments (particularly hospitals), or for early stage enabling works on already announced projects, such as the New Royal Melbourne Hospital at Parkville.
Chart 1: A decline in store for Victorian government infrastructure investment
