Building for Growth 2013-14 VictoriaN Budget
Budget Overview The Secretary Department of Treasury and Finance 1 Treasury Place Melbourne, Victoria, 3002 Australia Telephone: +61 3 9651 5111 Facsimile: +61 3 9651 5298 Website: www.budget.vic.gov.au Authorised by the Victorian Government 1 Treasury Place, Melbourne, 3002 Print managed by Finsbury Green Level 9, 124 Exhibition Street, Melbourne, 3000 This publication makes reference to the 2013-14 Budget Paper set which includes: Budget Paper No. 1 – Treasurer’s Speech Budget Paper No. 2 – Strategy and Outlook Budget Paper No. 3 – Service Delivery Budget Paper No. 4 – State Capital Program Budget Paper No. 5 – Statement of Finances (incorporating Quarterly Financial Report No. 3) © Copyright State of Victoria 2013 This book is copyright. No part may be reproduced by any process except in accordance with the provisions of the Copyright Act 1968. ISSN 1440-6969 Published May 2013 Printed on recycled paper 2013-14 Budget Overview > 1
01 Budget at a glance 02 Budget outlook 04 Strengthening Victoria’s economy 05 Building for growth 06 Continuing to link up Melbourne – East West Link 08 Investing in roads 09 Improving public transport 10 Strengthening health care 12 Delivering better education 14 Key projects timeline – a snapshot 16 Boosting our regions 20 Protecting our community 21 Attracting business and investment 22 Delivering for Victorian families 23 Managing cost of living pressures 24 Supporting the arts and multiculturalism
Budget at a glance
Growing economy, growing employment, growing surpluses, major new infrastructure. Operating surplus of $225 million in 2013-14.
Government infrastructure investment program of $6.1 billion in 2013‑14, including transformational investments in East West Link – Stage 1, the Port of Hastings, road, freight and public transport.
Delivering the new Bendigo, Monash Children’s and redeveloped Royal Victorian Eye and Ear Hospitals with $197 million in 2013-14 and more than $1 billion in total. Additional $426 million in 2013-14 to Victoria’s hospitals and health system – $11.2 billion in total for acute health in 2013‑14.
Allocates $580 million in asset and output funding for the future of Victoria’s education system – $11.6 billion in total towards education in 2013‑14. Gross State Product to grow by 2.25 per cent in 2013‑14, rising to 2.75 per cent over the medium term. Net debt of 6.4 per cent of GSP in 2013‑14, falling to 5.4 per cent by the end of the forward estimates. 2 > 2013-14 Budget Overview
Government infrastructure investment Government infrastructure investment (excluding fiscal stimulus) Proportion of GSP rolling 5-year average (RHS) Infrastructure target (RHS) 8.00 2.5 7.00 2.0 6.00
5.00 1.5 4.00
$ billion 3.00 1.0 per cent 2.00 0.5 1.00 0.00 0.0 2006-07 2008-09 2010-11 2012-13 2014-15 2016-17 Source: Department of Treasury and Finance
Budget outlook
Strong and secure finances Without the Coalition Government’s decisive action, growth in government Medium-term fiscal The 2013‑14 Budget demonstrates the expenditure and net debt would have Coalition Government’s commitment parameters become unsustainable. Since coming to responsible financial management. to office, the Coalition Government > Infrastructure investment of In 2013‑14, the Coalition Government has implemented savings and new 1.3 per cent of GSP (calculated will deliver an estimated operating targeted revenue initiatives totalling as a 5‑year rolling average) surplus of $225 million. approximately $2.5 billion in 2013‑14. > Reduced general government net The Coalition Government’s These measures have reduced ongoing debt as a percentage of GSP over commitment to managing the budget expenditure growth, returning it to the period to 2022 to deliver operating surpluses has more sustainable levels, and in line with > Fully funded superannuation strengthened Victoria in challenging forecast revenue growth. The Coalition liability by 2035 Government has achieved this while economic times. It also supports a > Net operating surplus of at least ensuring that the quality of Victoria’s sustained program of infrastructure $100 million and consistent frontline services is enhanced. construction and continuing high with the infrastructure and quality public services for Victorians. Victoria is now one of only two states debt parameters This fiscally responsible approach (along with resource-rich Western allows for investment in infrastructure, Australia) forecasting consistent while avoiding excessive levels of debt. operating surpluses over the next Over the past decade, the State four years. saw considerable revenue growth, Net debt is estimated to be 6.4 per cent which was outpaced by increases in of GSP at June 2014, and begins to government expenditure, creating decline on this basis after June 2015. a structural deficit. The sources of The Coalition Government is on track to revenue that fuelled this growth meet the medium‑term fiscal parameter have now softened. to reduce general government net debt as a percentage of GSP over the period to 2022. The Coalition Government’s medium‑term fiscal strategy delivers prudent budget management, while strengthening investment in productivity‑boosting infrastructure and high quality public services. The 2013‑14 Budget is a balanced, responsible budget, which strengthens key service offerings to Victorians, while preserving budget surpluses and modest levels of borrowing. 2013-14 Budget Overview > 3
(24.375/20) x A = answer Operating surpluses as a share of total revenue by state (a) (b) 2012-13 2013-14 2014-15 2015-16 10
5
0
-5 per cent -10
-15
-20 VIC WA NSW TAS SA QLD
Sources: Victorian State budget papers and other state budget papers and budget update papers Notes: (a) Operating balances from other jurisdictions are based on the previous Australian Accounting Standard AASB 119. The extent to which changes to AASB 119 will impact on the operating balance of each jurisdiction is not publicly available. (b) To enable a like with like comparison, Victorian figures used are the Government fiscal result, which adds an expected return on superannuation assets in excess of AASB 119 discount rate.
Fiscal parameters
2013-14 2014-15 2015-16 2016-17 Net result from transactions ($m) 225 399 1 928 2 547 Net debt (% of GSP) 6.4 6.6 6.1 5.4 Government infrastructure investment ($b) 6.1 6.6 4.0 3.5
Source: Department of Treasury and Finance
LEFT: (31.592/80,000) x A = answer RIGHT: (31.592/20) x A = answer Net debt with and without government action (a) (b) Improving our public services Net debt Net debt no action The community expects and deserves Net debt to GSP Net debt no action to GSP high-quality, responsive government services. Meeting this expectation in an 80 000 20% environment of lower revenue growth 70 000 will require governments to implement 60 000 15% smarter and more efficient ways of 50 000 doing things. 40 000 10%
% GSP The Coalition Government is
$ million 30 000 20 000 5% developing innovative, modern service delivery models – for example, in 10 000 human services, including disability, 0 0% housing and youth – and improving how the public sector operates.
2012-13 2013-14 2014-15 2015-16 2016-17 The public service restructure Source: Department of Treasury and Finance announced in April 2013 is designed to Notes: (a) Expenses assumed to grow at 7.3 per cent a year (this corresponds to the average annual further sharpen the focus on securing historical growth from 2000-01 to 2010-11) from 2011-12 to 2016-17. investment and jobs, and provide better (b) Revenues, capital expenditure, finance leases, other investment activities and non-cash income and services to Victorians. expenses are assumed to be the same as in the 2013-14 Budget. 4 > 2013-14 Budget Overview
TOP: (16.747/2.5) x A = answer BOTTOM (line): (18.757/.459) x A = answer General indicators of the Victorian economy
2.5 Victorian GSP: contributions to growth in 2011-12(a) 2.0 Household GSP consumption 1.5 Balancing 1.0 item (b) Business Public Net Net 0.5 investment Dwelling demand investment export export Percentage point Percentage 0.0 goods services
106.0 Total employment growth 104.8 Victoria All other jurisdictions 103.6 (excluding WA) 102.4 101.2 100.0 Index 2008-09 = 100 Index 2008-09 2009-10 2010-11 2011-12
Sources: Australian Bureau of Statistics, Department of Treasury and Finance Notes: (a) The contributions to growth of the components of GSP do not always add exactly to the growth in GSP. This can happen as a result of rounding and the lack of additivity of the chain volume estimates prior to the latest complete financial year. (b) The balancing item reflects changes in inventories, total net interstate trade as well as other miscellaneous items such as the balancing item discrepancy and adjustments for balance of payments trade.
Strengthening Victoria’s economy
A resilient economy > The Coalition Government is ensuring Further boosting productivity Victoria is a competitive and low‑cost Victoria’s economic outlook is positive. place to do business – this includes in the 2013‑14 Budget The economy is proving resilient in a focus on streamlined, flexible The 2013‑14 Budget builds on the the face of a strong Australian dollar planning and land development Coalition Government’s productivity and global uncertainties, particularly approaches, and minimising red tape agenda with a raft of initiatives. in Europe. Victoria’s economy has to allow Victorian businesses to get performed well in difficult times > The $6-8 billion East West Link on with the job. and is well placed to capitalise on (Stage 1) project – a whole new way emerging opportunities. to move people around Melbourne Positive signs for the future and link up Victoria, greatly reducing Improving productivity is the key Growth in real gross state product in congestion and improving travel times to growing the standard of living for both families and business. for current and future generations 2013‑14 is expected to be a healthy of Victorians, and the Coalition 2.25 per cent. The continued low > $515 million for new trains, Government is taking action to boost interest rate environment is encouraging infrastructure and station productivity across the state. spending, and household consumption upgrades and early works on level should increase solidly in 2013‑14. crossing removal. > The Coalition Government’s fiscal In line with this, Victoria’s property > A $110 million plan to expand the strategy allows it to advance major, Port of Hastings – a game‑changing transformational infrastructure market is displaying signs of improvement after slowing in 2011‑12. investment in the future of projects, as well as the ongoing road, Victorian trade. rail and other infrastructure required Consumer sentiment has strengthened, to keep pace with population and there are indications of solid > $170 million in additional funding growth – importantly, the Coalition increases in retail sales. for arterial road maintenance and restoration, augmenting VicRoads’ Government’s approach is Many industries have posted growth base road maintenance budget. sustainable, and on track to fully in employment in the past year, fund the infrastructure program underscoring the benefits of Victoria’s > Establishing a $200 million TAFE without additional borrowing broadly based and adaptable economy. structural adjustment fund to support by 2015‑16. The unemployment rate is expected innovation and structural reform in > The Coalition Government is to ease to 5 per cent over the forward Victoria’s TAFE institutes. improving the way it delivers public estimates period. > A $112 million suite of initiatives to drive Victorian business services to provide better government In recent years, Victoria’s economic innovation and international services at lower cost. performance has compared engagement in the tourism, > The Coalition Government is favourably to all other Australian international education, health continuing to build the skills and states, except Western Australia, exports, aviation, and screen sectors. capabilities of the Victorian workforce when comparing growth in gross state with an increased focus on promoting product and employment. > Significant investment in the future trade skills and competencies of the Macalister Irrigation District that match industry needs and through $16 million in support, to employment opportunities. be matched by irrigators, for on‑farm infrastructure upgrades. 2013-14 Budget Overview > 5
Victorian economic projections (a)
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 Actual Forecast Forecast Forecast Forecast Forecast Real gross state product 2.3 1.50 2.25 2.75 2.75 2.75 Employment 0.8 0.50 1.50 1.75 1.75 1.50 Unemployment rate 5.4 5.75 5.50 5.25 5.00 5.00 Consumer price index(b) 2.3 2.25 2.50 2.50 2.50 2.50 Wage price index (c) 3.5 3.50 3.50 3.50 3.50 3.50 Population 1.6 1.70 1.70 1.70 1.70 1.70
Sources: Australian Bureau of Statistics, Department of Treasury and Finance Notes: (a) Year-average per cent change on previous year, except for the unemployment rate which is a year-average per cent and population which is year‑ended per cent change on the previous June quarter. (b) All references to the consumer price index refer to the Melbourne consumer price index. (c) Total hourly rate excluding bonuses.
Building for growth
Transforming Victoria’s The East West Link will better connect Increasing our trade capacity the state to Melbourne Airport, The 2013‑14 Budget provides economic connections the Port of Melbourne and freight $110 million to develop the This budget delivers major, generators and will provide a bypass of Port of Hastings. The Port of Hastings transformational projects to secure Melbourne for regional freight, reducing development is critical for the Victoria’s economic future and benefit costs for regional exporters. all Victorians today through better future of our growing freight trade, connectivity and liveability. Stage 1 of the East West Link will well beyond the next decade, connect CityLink at Parkville to the providing a significant expansion to The significant infrastructure Eastern Freeway at Hoddle Street. Victoria’s container freight capacity. investments funded in this budget The East West Link will be delivered The $110 million initiative in the increase Victoria’s capacity for trade and as a public private partnership (PPP), 2013‑14 Budget provides for a capital create better linkages across the state, including some private sector financing. injection in the Port of Hastings improving productivity and driving As a nation-building piece of major Development Authority to progress future economic growth across Victoria. infrastructure, a $1.5 billion funding planning and approvals to develop this contribution from the Commonwealth critical infrastructure. Improving connectivity will be required to ensure the timely for the future delivery of this transformational Planning for the construction of infrastructure project. a second Victorian container port with land-side transport connections Stage 1 of East West Link It is expected that the Eastern Section will meet expected demand for The Coalition Government has allocated of the East West Link will create containerised shipping well into the funding in the 2013-14 Budget for approximately 3 200 jobs during the future, providing enhanced certainty for Stage 1 of the East West Link as the construction phase. Victorian imports and exports. first step towards its longer-term commitment to the project as a whole. Melbourne Metro This initiative complements the The East West Link will ultimately Planning and development of the Port of Melbourne redevelopment, transform the way people move around Melbourne Metro Rail Tunnel will be which is undergoing a $1.6 billion Melbourne, linking the Eastern Freeway progressed in 2013-14. This project is expansion of container and automotive to CityLink, CityLink to the Port of crucial to meeting increasing demand capacity at Webb Dock. Melbourne, and the Port of Melbourne for train services in Melbourne’s growth to the Western Ring Road, alleviating areas, enabling the creation of four congestion and ensuring travel-time independent rail lines. The project will reliability for families and freight. create the capacity needed for future The East West Link will promote expansion of Melbourne’s rail network, Victoria’s liveability and productivity. future‑proofing the system. The project will substantially enhance $10 million will be spent in 2013‑14 cross‑city capacity and reduce to progress detailed planning on reliance on the West Gate Bridge Melbourne Metro. and M1 Corridor. 6 > 2013-14 Budget Overview
Continuing to link up Melbourne – East West Link
Ormond Rd
Mount Alexander Rd Brunswick Rd
Epsom Rd
High St
Duke St Holden St Ballarat Rd Victoria Rd
Ascot Vale Rd Westgarth St Forrest St Ballarat Rd Anderson Rd Rosamond Rd Heidelberg Rd Racecourse Rd Lygon St
Nicholson St South Rd Flemington Racecourse Queens Pde Flemington Rd Wright St Eastern Fwy Macaulay Rd
Hampshire Rd
Gordon St
Royal Pde Johnston St Sunshine Rd Barkly St Kensington Rd
Dynon Rd Studley Park Rd
Hoddle St Victoria Pde Geelong Rd
Fairbairn Rd Footscray Rd Eastern Section Somerville Rd Stage 1 – Eastern Section Whitehall St
CityLink
Western Ring Rd Ring Western CBD Stage 1 – Eastern Section (tunnel) Eastern Section
Western Section Princes Hwy Western Section
Millers Rd West Gate Fwy Lorimer St Cemetery Rd Western Section (tunnel)
Map not to scale City Rd Western Section – additional roadworks
Why East West Link? Investment > Melbourne’s cross-city connectivity is constrained. > Total capital cost of the program of works for the first stage > The only major east-west route across the city, the M1 is estimated at between $6-8 billion. corridor, is operating at or close to capacity. > The 2013-14 Budget makes provision for delivery of > Daily queues and congestion where the Eastern Freeway the first stage, allowing for some private financing and terminates at Hoddle Street. $1.5 billion of Commonwealth funding. > East-west traffic is forced onto residential streets in the > Funding of $294 million has been released over the next inner north and inner west. 2 years to complete detailed planning, and commence procurement and early works construction. > The city’s busiest tram routes through the inner north to the CBD are becoming less reliable due to congestion > The project road will be tolled, however tolling revenue caused by east-west traffic. will not recover the full cost. Therefore, significant investment is required by the State, Commonwealth and > Constrained connections to and from the city’s major private sector. economic gateways and freight destinations (such as Melbourne Airport and the Port of Melbourne) restrict > The Coalition Government will engage with communities business and freight movements. regarding the preferred corridor and the needs and concerns of local communities. > Population growth in Melbourne, in particular in the west and north, will continue to place pressure on cross‑city routes. 2013-14 Budget Overview > 7
Ormond Rd
Mount Alexander Rd Brunswick Rd
Epsom Rd
High St
Duke St Holden St Ballarat Rd Victoria Rd
Ascot Vale Rd Westgarth St Forrest St Ballarat Rd Anderson Rd Rosamond Rd Heidelberg Rd Racecourse Rd Lygon St
Nicholson St South Rd Flemington Racecourse Queens Pde Flemington Rd Wright St Eastern Fwy Macaulay Rd
Hampshire Rd
Gordon St
Royal Pde Johnston St Sunshine Rd Barkly St Kensington Rd
Dynon Rd Studley Park Rd
Hoddle St Victoria Pde Geelong Rd
Fairbairn Rd Footscray Rd Eastern Section Somerville Rd Stage 1 – Eastern Section Whitehall St
CityLink
Western Ring Rd Ring Western CBD Stage 1 – Eastern Section (tunnel) Eastern Section
Western Section Princes Hwy Western Section
Millers Rd West Gate Fwy Lorimer St Cemetery Rd Western Section (tunnel)
City Rd Western Section – additional roadworks
Delivering on the first stage of East West Link > The Coalition Government is committed to delivering the full East West Link, which is an 18 kilometre freeway- standard road from the Eastern Freeway to the Western Ring Road. > The scale and complexity of the project means it will be delivered in stages. > The first stage of the project is the Eastern Section, a 6 kilometre link from the Eastern Freeway in Clifton Hill to CityLink in Parkville. > The section will be predominantly in tunnel to minimise social, visual, noise and other environmental impacts. > The first stage will also provide for transport and urban amenity improvements along the corridor, including public transport initiatives and initiatives to address congestion on adjoining roads. > Main construction on the first stage is expected to commence in late 2014 with the construction period of approximately 5 years. 8 > 2013-14 Budget Overview
Investing in roads
The Coalition Government continues Removing railway level crossings to make significant investments in Victoria’s road network. These South Morang investments will meet the demands of Craigieburn Hurstbridge a growing population and improve the Upfield safety and reliability of the State’s roads.
Flemington Coburg Maintaining our Racecourse road network Sunbury The 2013‑14 Budget provides over $280 million in additional funding Main Road St Albans Clifton Hill for the restoration, maintenance and upgrade of key sections of Victoria’s Lilydale Melton City road network. These projects include: Sunshine Footscray BlackburnMitcham/Rooks Road Roads Loop Camberwell Ringwood Anderson Road > $90 million for targeted road Newport Mountain Highway restoration, focusing first on high Burke Road Scoresby Road Williamstown priority roads on strategic economic Alamein Caulfield routes. Restoring these roads will Belgrave Murrumbeena Road improve their safety and reduce Werribee PORT North Road Glen Waverley ‘whole of life’ costs involved in PHILLIP
maintaining the State’s road network Springvale Road into the future. Sandringham > $80 million for arterial road maintenance, adding to VicRoads’ The removal of railway level crossings Improving safety and Cranbourne base road maintenance budget. reduces traffic delays and congestion, efficiency by removing improves road network efficiency,Pakenham and > $32 million to repair fatigue defects delivers safer conditions for road users, on the West Gate Bridge, ensuring the railway level crossings NORTH pedestrians and cyclists. The funding longevity of this important road asset. A $52 million package of early works Stony MAP NOT TO SCALE Frankstonannounced in this budgetPoint builds on Effective 28 April 2013 > $53 million for the upgrade of will progress the removal of railway $350 million in works announced in the Cardinia Road, High Street Road, level crossings at: last budget to eliminate level crossings Omeo Highway, implementation of > Main Road (St Albans). at Springvale Road and Mitcham a managed motorway system on the and Rooks Roads. In addition, the > North Road (Ormond). Monash Freeway, and planning for Coalition Government has committed the Kilmore-Wallan Bypass. > Blackburn Road (Blackburn). to removing two level crossings on > $28 million for targeted road upgrades > Mountain Highway and Scoresby Anderson Road, Sunshine, as part in regional Victoria to address key Road (Bayswater). of the Regional Rail Link project. transport bottlenecks. > Further planning and business case Construction is underway or about to development for the Burke Road commence on the Springvale, Mitcham (Glen Iris) and Murrumbeena Road and Anderson Road projects. This is in (Murrumbeena) level crossings. addition to the $17 million provided in the 2011-12 Budget. 2013-14 Budget Overview > 9
Improving public transport
Expanding rail capacity > A $64 million upgrade to the Ringwood Station precinct on top of Response to the Taxi The 2013‑14 Budget provides the $2 million previously provided. $179 million for eight new X’Trapolis Industry Inquiry > $25 million for additional train trains and associated infrastructure and The Taxi Industry Inquiry was services on the Dandenong rail line planning for future train acquisition. established as an independent to support growing demand. This adds to the seven trains funded body to undertake a review by the Coalition Government in the into all aspects of the taxi 2011‑12 Budget. Safe and modern and hire car industry, and This funding delivers stage two of the transport hubs recommend a set of reforms to the Coalition Government. Coalition Government’s commitment The $66 million upgrade to the to acquire 40 additional commuter Ringwood Station precinct will deliver The Taxi Industry Inquiry’s final trains for Melbourne during its first a modern, integrated transport hub report was tabled in Parliament on and second terms. The trains will be for commuters. The project will 12 December 2012. fitted out by Ballarat train manufacturer revamp pedestrian amenities and Alstom, securing jobs in the region. includes a larger bus interchange, The report recommends The trains are expected to commence leveraging $500 million in private sector comprehensive structural and running on the network by 2015. investment at Eastland Shopping Centre, regulatory reform of the taxi generating 2 000 construction jobs industry, including a reform to The Coalition Government has ordered and 2 000 ongoing retail jobs. licensing arrangements which 40 new V/Line carriages to meet would remove the quantitative Funding of $14 million has been increased services when the Regional provided to the transit interchange restriction on taxi licences. Rail Link opens in 2016, and also has precinct in central Frankston to upgrade on order 50 new trams. These new Since the release of the final report, lighting, shelters and amenities, the community has been provided investments will build network capacity improving safety and comfort for for years to come. with an additional opportunity travellers. Redesigned traffic flows will to provide comment through a Around $300 million in other initiatives encourage movements between the public submissions process, which funded in the 2013‑14 Budget to interchange and core business precinct. concluded at the end of January. enhance safety and performance on The project forms part of a staged the public transport network include: revitalisation of central Frankston, The Coalition Government will which builds on the $5 million provided consider the submissions received > $100 million to improve passenger in 2011-12 Budget to support the and expects to provide a final services on the Frankston line, and renewal of the Frankston town centre. response to the Inquiry in the first provide infrastructure to enable half of 2013. X’trapolis trains to be deployed Better bus services on the Frankston, Werribee and Williamstown lines. Supporting the increased investment in the train network, this budget provides > $78 million to build and maintain $25 million to enhance bus services. facilities for Protective Services The initiative will increase the number Officers at railway stations. of bus services in key growth areas, > $32 million to build and operate improving transport coordination for a new station at Grovedale commuters. Precincts include St. Albans, and additional car parking at Caroline Springs, Wyndham, Bacchus Syndal Station. Marsh and Warrnambool. 10 > 2013-14 Budget Overview
Total acute health budget 2010-11 to 2013-14
Total budgeted acute health asset spend in that year Total budgeted acute health output spend
14 000
12 000
10 000
8 000
$ million 6 000
4 000
2 000
0 2010-11 2011-12 2012-13 2013-14
Source: Department of Treasury and Finance
Strengthening health care
Building up our In total, the 2013-14 Budget provides health infrastructure an additional $629 million to improve High quality, modern the condition of hospital infrastructure. health infrastructure High quality, modern hospital Other key projects funded in this assets are crucial to driving service budget include redevelopment of The Coalition Government is improvements and meeting the Werribee Mercy Hospital mental funding key hospital infrastructure future needs. health facilities, constructing 54 new works across Victoria. hospital beds, and expansion of the Projects already underway include: Monash Children’s Hospital Northern Hospital inpatient capacity, Funded in the 2012‑13 Budget Update, through 32 additional beds and > Monash Children’s Hospital the new Monash Children’s hospital will support areas. > V ictorian Royal Eye and Ear deliver 230 paediatric beds to service The Coalition Government is Hospital redevelopment growing populations in south east committing $78 million of this capital Melbourne, the Mornington Peninsula > The new Bendigo Hospital investment towards rural and regional and south east Victoria. areas, ensuring proximate access to > V ictorian Comprehensive Cancer Centre Royal Victorian Eye high quality health services for all Victorians. Key health projects for rural > Box Hill Hospital redevelopment and Ear Hospital and regional areas include: A complete redevelopment of the iconic Royal Victorian Eye and Ear Hospital will > Waurn Ponds Community Hospital provide a substantial boost to capacity – a new 32-bed community hospital on the existing site in East Melbourne. in southern Geelong. This hospital will meet service pressures for the Bendigo and Box Hill Hospitals growing populations of Geelong and the Victorian Comprehensive and the Surf Coast Shire. The new facility will provide same‑day surgery, Cancer Centre chemotherapy chairs, renal chairs and The Coalition Government is also capacity for specialist clinics. funding major health infrastructure > Radiotherapy service for south west including the new $630 million Victoria in Warrnambool. This will Bendigo Hospital, the $1 billion enable residents to receive treatment Victorian Comprehensive Cancer Centre locally, instead of needing to travel and the $448 million redevelopment of long distances as at present. Box Hill Hospital. > Reinstating acute health services at Numurkah Hospital, which was damaged extensively in the March 2012 floods. The Coalition Government will invest $60 million to replace and improve vital medical infrastructure. This will ensure up-to-date medical equipment at both metropolitan and rural health facilities. 2013-14 Budget Overview > 11
A better health system > $62 million over four years in Training the future additional funds to expand culturally Victoria has long been a leader in appropriate service options for health workforce driving efficient health services. Aboriginal Victorians. The funds The Coalition Government is acting The Coalition Government’s will establish a better pathway now to prevent a projected shortage commitment to quality and efficiency to mainstream service access of qualified health professionals in the will build an affordable health system for Aboriginal Victorians, while future. The 2013-14 Budget strengthens for the long term. ensuring that mainstream providers the future health workforce through A number of initiatives funded in this are able to respond effectively to a $238 million investment over four budget seek to reform the way Victoria their needs. years in training programs. These provides its health services. Driving > $22.2 million over four years to initiatives include: efficiency in the delivery of health provide health care for refugees and > $194 million over four years to services will ensure Victoria is well asylum seekers settling in Victoria. support additional clinical training for placed to address future challenges undergraduate students. such as an ageing population and greater rates of chronic and complex Boosting mental health > $42 million over four years to health conditions. and drug services support additional intern and new graduate places in medicine, nursing, Mental health and drug service capacity The 2013-14 Budget provides an midwifery and medical radiation. will be boosted with additional funding additional $426 million in 2013-14 and > An additional six training posts for $1.8 billion over the forward estimates of $42 million in the 2013‑14 Budget. Building on existing investment of rural general proceduralists, building to Victoria’s hospitals and health system, $1.1 billion for mental health and drug on current programs to train rural bringing expenditure on acute health to services, the additional funds will doctors in procedural skills including $11.2 billion in 2013-14. Newly funded secure the ongoing operation of the obstetrics, anaesthetics, emergency initiatives include: Community Care Unit at Austin Health, care and surgery. > $421 million over four years for a and a range of mental health beds at funding pool to drive efficiencies Monash Health (Dandenong Hospital). Meeting demand in Home in elective surgery. This follows a The budget also meets a Coalition and Community Care successful pilot in the 2012-13 Budget Government election commitment by The Home and Community Care and will encourage the most efficient allocating $25.2 million over four years program supports older and younger use of facilities to see more patients to increase capacity through: treated sooner. people with a disability to remain in > 16 new mental health beds across their home. Victoria allocates around > $772 million over four years to treat Western Health (Footscray), $665 million annually to this important more patients. This package includes Eastern Health, Austin Health, and the service, and the 2013‑14 Budget funding to augment critical care Latrobe Regional Hospital (Traralgon). builds on this investment and provides capacity in Intensive Care Units and an additional $34 million a year to enhance maternity and neonatal care. > Three five-bed mother-baby units in regional Victoria for women with a maintain current service levels and meet mental illness and their infants. growing demand. > Enhanced mental health and wellbeing services in Bairnsdale, which will coordinate access to mental health, welfare and social services in East Gippsland. 12 > 2013-14 Budget Overview
(114.862/100) x A = answer Impact of refocusing vocational training on commencing enrolments Percentage of total commencements by band
Before Reforms Example of subsidy bands 21% 10% 20% 41% 8% A: Apprentices, Building, Trades, Engineering B: Child Care, Aged Care, Nursing, Agriculture, Manufacturing, Foundation skills After Reforms C: Public Administration, Warehousing, Community Services, Tourism, Arts
7% 5% 23% 55% 10% D: Business, Financial Planning and Insurance, Security Operations E: Sport, Fitness, Low level Retail, Business and Hospitality 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Represents commencing enrolments in 2012 and as reported at 31 March 2013. ‘Before reforms’ relates to January-June 2012, ‘After reforms’ relates to July 2012-March 2013. Sources: Department of Treasury and Finance, Department of Education and Early Childhood Development
Delivering better education
The 2013-14 Budget allocates Training and developing The percentage of enrolments in $580 million in asset and output government-funded vocational funding for the future of Victoria’s our workforce education and training (VET) places education system, underpinning lifelong Victoria’s training system provides by unemployed people grew from learning and development from early opportunities for Victorians to develop 17 per cent in 2008 to 24 per cent in childhood to adulthood. In total the skills that lead to real and sustainable 2012, on top of significant growth in Coalition Government will direct jobs. It remains the most responsive in total participation. In addition, there almost $11.6 billion towards education Australia to the changing needs of the were approximately 6 200 Indigenous from early childhood to adulthood in labour market, driven by strong growth students and over 40 000 students with 2013‑14. The Coalition Government in the non‑TAFE sector. a disability undertaking training in has set an objective to lift Victoria’s The 2013‑14 Budget builds on recent 2012, an increase of 11 and 18 per cent education and development outcomes skills reform, where the Coalition respectively from 2011. into the global top tier over the next Government added more than Training courses that hold little prospect 10 years. Funding provided in the $1 billion over four years to the of a job at completion are not only an 2013‑14 Budget supports this goal. vocational educational and training inefficient use of public money, but are budget, targeted to areas of greatest of little benefit to people seeking to public benefit and future jobs growth. enter the workforce. This brings the State’s annual budget for higher education and skills to A responsive, innovative and around $2.3 billion. financially sound TAFE sector is central to the success of skills reform, As part of this, the Coalition and the Coalition Government Government introduced a new set of is supporting TAFE institutes to subsidy rates for all training providers compete on a sustainable basis in the to better reflect the relative public value modern vocational training system. of particular courses. Encouraging A $200 million TAFE Structural training in the highest value courses, Adjustment Fund will support TAFE while maintaining a market‑driven institute initiatives that promote approach, preserves the benefits of a innovation, collaboration, structural more competitive vocational education reform and business transformation. and training sector, while ensuring government spending is sustainable Other reforms to give TAFEs greater and well targeted. control over their assets and workplace relations and reduce the regulatory As the chart above illustrates, the burden on institutes will help to secure rebalancing of subsidy rates has resulted the future of TAFEs in Victoria. in a shift in commencements from courses with less need for government investment (bands D and E) to courses of higher public value (bands A and B). 2013-14 Budget Overview > 13
Improving our schools system Assisting children with a Upgrading kindergartens The Coalition Government has disability to learn and achieve and schools developed a comprehensive education The Coalition Government is ensuring Lifting our education performance agenda to drive school performance that all Victorian children have to the highest levels requires quality to world‑class standards. The the opportunity to maximise their education facilities. The 2013-14 Budget 2013‑14 Budget supports this agenda engagement and achievement in supports capital upgrades across the with an allocation of $15.7 million learning and development. early childhood and schools sectors. towards performance management of teachers and principals in schools, The Early Childhood Intervention Grant funding of $7 million will identification of high-potential teaching Service provides a family‑centred be available to build and upgrade graduates and measures to support approach to helping children with a kindergarten and children’s services, under‑performing schools. This builds disability or developmental delay from forming part of the $543 million on the existing reforms implemented by birth to school age. The 2013‑14 Budget provided annually by the Coalition the Coalition Government in previous delivers a major boost to this program, Government in support of the early budgets, focusing on empowering funding an additional 1 000 Early childhood sector, helping Victorian school leaders and teachers by Childhood Intervention Service places children get a good start in life. annually. This budget’s $31 million devolving more decision making to The 2013‑14 Budget provides for total in funding over four years adds principals and school communities. school capital works of $203 million. to existing program funding of The funding will provide for five new The Coalition Government has reached $82 million in 2013‑14. an in-principle agreement with schools and land acquisitions in growth principals, teachers and education The 2013-14 Budget provides continued locations, so that these areas benefit support staff in Victorian government investment to support school students from quality education in the future. with a disability, to maximise their schools. The proposed new Enterprise This funding builds on the Coalition achievements in education and learning. Bargaining Agreement will provide Government’s recent announcement of This program provides specialist government school employees with fair $52 million for maintenance at more allied health system support including and reasonable pay increases, and help than 200 schools across the state. to keep the best Victorian teachers in psychology, speech pathology and the state school system by providing social work services to government attractive employment arrangements. school students facing barriers to The agreement includes financial learning and achieving their education incentives for teachers to perform at and development potential. a high level, while also giving school Additional funding of $38 million principals the flexibility to better will be provided for the Program for manage staff and resources. Students with Disabilities, building on the Coalition Government’s existing funding in 2013-14 of $585 million. The Coalition Government will also invest an additional $13 million for the Students with Disabilities Transport Program, building on existing funding in 2013‑14 of $57 million. 14 > 2013-14 Budget Overview
Key projects timeline – a snapshot
Victorian Comprehensive Cancer Centre
Regional Rail Link and Rolling Stock
The M80 Upgrade
New Bendigo Hospital
Metro Level Crossings (Springvale, Mitcham, Sunshine)
Royal Victorian Eye and Ear Hospital
Box Hill Hospital
Monash Children’s Hospital
East West Link (Stage One) Project
2011 2012 2013 2014 2013-14 Budget Overview > 15
Victorian Comprehensive Cancer Centre
Regional Rail Link and Rolling Stock
New Bendigo Hospital
Metro Level Crossings (Springvale, Mitcham, Sunshine)
Royal Victorian Eye and Ear Hospital
Box Hill Hospital
Monash Children’s Hospital
East West Link (Stage One) Project
2016 2017 2018 2019 16 > 2013-14 Budget Overview
Boosting our regions
The Coalition Government is Increasing productivity in our Improving transport committed to improving services and infrastructure in rural and regional agriculture industry infrastructure in the regions Victoria. Supporting this growth, the The Macalister Irrigation District Well maintained transport infrastructure 2013‑14 Budget initiatives underpin a is the largest irrigation district in is central to the productivity and prosperous regional economy, and high the south of Victoria, generating liveability of Victoria’s regions. quality public services in our regions. significant economic benefits for the The 2013‑14 Budget delivers around state, primarily through dairy farming. $150 million towards boosting transport Dairy is the state’s largest export earner, infrastructure in the regions, including: providing no less than 7 per cent of all > $28 million for infrastructure dairy products traded globally. Coalition upgrades, principally focusing on Government funding of $16 million roads that present bottlenecks to the provided in the 2013‑14 Budget will be growth of productivity in regional matched by contributions from irrigators Victoria. These projects will increase to modernise on‑farm infrastructure, capacity on the network by better increase productivity, expand regional utilising existing infrastructure. economic production, and improve the health of the area’s waterways > $9 million to build and operate and estuaries. a new train station at Epsom. The development includes a This program builds on the recently 160 metre platform with shelters, confirmed $103 million Commonwealth ticketing, public announcements contribution to upgrade Sunraysia’s and hearing loops, and parking irrigation infrastructure. for 60 cars. Bendigo route services The 2013-14 Budget provides will be changed to make Epsom $4.7 million to protect Victoria’s and Eaglehawk the terminuses for meat, dairy and animal fibre and some services, improving public skins industries against outbreaks of transport access in the northern foot‑and‑mouth disease. The initiative areas of Bendigo. addresses a number of urgent issues > $22 million to build and operate raised in the Matthews Report, A review a new station at Grovedale, of Australia’s preparedness for the threat incorporating a single platform with of foot-and-mouth disease. passenger amenities, on-road bus bays, bicycle storage and car parking The Coalition Government will extend for 200 cars. The project will upgrade funding for financial counselling track and signalling to maximise the for primary producers, fishers and number of trains that can operate to small rural businesses suffering and from the new station. financial hardship. The Rural Financial Counselling Service helps > $10 million for planning and rural businesses struggling with the preparatory work for the Kilmore- challenges of industry change to adapt. Wallan Bypass. > $7 million to complete the sealing of Omeo Highway. 2013-14 Budget Overview > 17
Better regional hospitals Clean Coal Victoria will be funded to Fairer fire services funding implement actions from the Strategic Access to high quality health services The Coalition Government will Coal Plan. Central to its role is in rural and regional areas will be introduce the Fire Services Property consulting extensively with stakeholders improved through the Coalition Levy as a fairer and more equitable way and the community on the development Government’s commitment in this to fund fire services. of Victoria’s coal resources. budget to hospital infrastructure. From 1 July, the average household’s Key health projects include: Protecting the environment contribution in a Country Fire Authority > A new 32-bed community hospital in (CFA) area for fire services is expected Waurn Ponds, meeting the demands The Coalition Government recognises to reduce from an average of $262 of the Geelong and the Surf Coast the need to invest in the state’s capacity in 2011-12 (the last full year of the Shire population. to prepare for and respond to natural insurance-based levy), to $142 in disasters and has provided $34 million 2013‑14. > The new $630 million Bendigo to enable the continued expansion of Hospital, one of the largest regional the planned burning program. This health care projects in Australia. will reduce the risk of bushfires for Supporting responsible > Radiotherapy services will be developed communities across regional Victoria. game management in Warrnambool to enable residents The Coalition Government recognises to receive treatment locally instead of Completing the Government’s election the enormous support game hunting travelling long distance. commitment to deliver 250 Country Fire Authority (CFA) rural fire stations, provides to local economies in regional > The re-establishment of a range of $61 million has been provided in this Victoria. The activity generates more acute health services at Numurkah budget to deliver the remaining 142 than $70 million each year and Hospital which was damaged fire station replacements and upgrades supports jobs in hospitality, the extensively in the March 2012 floods. over the next two years. This will supply of vehicles, boats, firearms enhance the capacity of emergency and ammunition, plus camping and Promoting investment in services infrastructure and assist the hunting equipment. our natural resources CFA respond to emergency events. Funding of $8.5 million has been Victoria’s earth resources sector develops The budget also provides: provided to establish an independent commodities including brown coal, gas, Game Management Authority. The > $7 million to remove trees authority will oversee the management gold, petroleum, mineral sands and destroyed by previous bushfires to base metals. Mining contributes around of game species, including the improve the safety for people who enforcement of game hunting 2 per cent ($6 billion) to Victoria’s access public land. GSP and employs over 6 000 people and associated laws, and promote across the state. > $9 million to fund high priority works responsible hunting. to protect assets along the Victorian Further greenfield mineral exploration coastline, including Port Phillip and Boosting regional tourism and project development will invigorate Westernport Bays. this industry. The 2013‑14 Budget A four‑year, $8 million boost to regional responds with a $19 million package to tourism will increase the number of attract new exploration, reduce barriers visitors to regional Victoria, and raise to investment and promote Victoria as awareness of Victoria’s attractive an investment destination in the earth regional destinations and experiences. resources sector. 18 > 2013-14 Budget Overview
Loddon Mallee New initiatives include: > Epsom Eaglehawk rail improvement - $9 million > Closure of Sandhurst residential services - $7.9 million > Bendigo Social Housing project - $4 million Current initiatives include: > Bendigo Hospital redevelopment - $630 million > Additional 45 beds at the Malmsbury Youth Justice Centre - $55 million > Echuca Hospital redevelopment and expansion - $40 million > Charlton Hospital reconstruction - $23 million > Swan Hill Hospital aged care redevelopment - $18 million
Grampians Barwon South West New initiatives include: New initiatives include: > Construction contract for 8 new trains at Ballarat, > Grovedale Station - $22 million and planning for future train acquisition – valued at > Waurn Ponds Community Hospital - $50.2 million $179 million > Radiotherapy services in south west Victoria - stage 2 - > Remediation of Fiskville and regional training colleges $10 million - $17 million Current initiatives include: Current initiatives include: > Launch site of the National Disability Insurance Scheme > Western Highway duplication between Burrumbeet and (Barwon) - over $300 million Beaufort - $50 million > Major upgrade of the Geelong Hospital - $93 million > Ballarat Hospital upgrade - $46 million > New secondary college at Torquay - $27 million > Western Highway duplication between Beaufort and > Third stage of Skilled Stadium redevelopment - $27 million Buangor - $42 million > Princes Highway overtaking lanes west of Colac > Ballarat West Link Road - $36 million - $15 million 2013-14 Budget Overview > 19
Goulburn-Ovens Murray Gippsland New initiatives include: New initiatives include: > Numurkah Hospital - reinstatement of acute services > Macalister Irrigation District 2030 - $16 million - $18.3 million > Sale police station - $15.3 million > Kilmore-Wallan bypass - $10 million > Sealing Omeo Highway - $7 million > Shepparton Court redevelopment - enhancing court > Clean Coal Victoria extension – $8.3 million facilities - $2.5 million > Mine stability - $4.2 million Current initiatives include: > Bairnsdale Mental Health and Wellbeing Centre - $1 million > Redevelopment and expansion of Kilmore and District Current initiatives include: Hospital - $20 million > Support the Latrobe Valley transition as a result of the > Development of a hotel and conference centre in introduction of the national carbon price - $30 million Marysville - $19 million > First stage of the Warragul Railway Station upgrade > Regeneration of Wodonga Senior Secondary College - $17 million - $10 million > Modernisation of Bairnsdale Secondary College - $10 million > Regeneration of Leongatha Secondary College - $10 million
Boosting our regions
Statewide All regions New initiatives include: New initiatives include: > School capital program > Bushfire response - emergency services - $61 million - $203 million > Planned burning - $34 million > TAFE Structural Adjustment Fund > Non-urban train radio renewal - $62 million - $200 million > Rural GP proceduralists - $3 million > East West Link (Stage 1) > Regional tourism - $8 million - $6-8 billion > Coastal Environments Program - $9.1 million > Securing Victoria’s health system - hospital services - $1.2 billion > Foot and Mouth disease preparedness - $4.7 million > Targeted road restoration > Treating fire‑affected trees on public land - $7 million - $90 million > A new Game Management Authority for Victoria - $8.5 million > Rural Financial Counselling Service - $2.3 million > Transport Solutions - $28 million > Strengthening our earth resources sector - $19 million 20 > 2013-14 Budget Overview
Protecting our community
A safer Victoria Additional prison capacity Improving access to justice Community safety is a key priority Funding of $131 million to strengthen The Coalition Government expects that for the Coalition Government, with Victoria’s corrections system will all Victorians have appropriate access the 2013‑14 Budget building on increase capacity and address demand to justice and related support services, the steps already taken to ensure a on prisons. These initiatives will provide and the 2013-14 Budget funds an safe community for all Victorians. an additional 357 prison beds across the expansion of victim support services. In 2013‑14, the Coalition Government male prison system. This funding builds The Victims Helpline operating hours will allocate more than $5.1 billion to on the existing correctional facilities will be extended to include weekends, support community safety activities, and programs budget of approximately and additional case managers will be including policing services, corrections $700 million annually, and will provide allocated to the Victims Support System and court services. a 7 per cent increase on existing bed through investment of $16 million This budget funds a major program of capacity across the male prison system. over four years. capital works to improve community This includes $53 million to fund a The Coalition Government will provide safety and law enforcement through new 40‑bed unit at Barwon Prison further support for Victoria Legal Aid upgrades to police and emergency to manage high security prisoners. with additional ongoing funding of services facilities. Key projects include: Other infrastructure upgrades at the approximately $3.4 million per year, > $30 million for new and upgraded Barwon Prison will provide for better to ensure those most in need of legal police stations in Sale and Somerville. management of high‑risk inmates. advice can access these services. This builds on existing state funding > $2.2 million to provide for 24-hour The 2012-13 Budget announced of $78 million a year provided to police stations in Mount Waverley and $670 million for funding a new 500‑bed Victoria Legal Aid. The budget initiative Carrum Downs. medium security men’s prision at funds additional case work and duty > $78 million to construct and maintain Ravenhall and for a further 395 beds in lawyer services. station facilities for Protective expanded existing facilities. Services Officers at additional railway stations, continuing the Upgrading and Coalition Government’s commitment to additional police and Protective enhancing the courts Services Officers. As part of the Supporting Courts > $28 million to replace mobile road initiative, $48 million over the next safety cameras with new technology four years will ensure the courts are – this will improve safety for all appropriately resourced to address road users. demand for their services. This builds on the $437 million of base funding The $61 million in funding provided in this budget to replace or upgrade provided for administration of the 142 rural fire stations will complete State’s judicial system. the Coalition Government’s election The 2013-14 Budget also funds commitment to improve and upgrade upgrades to court facilities and 250 stations. Ensuring quality, IT infrastructure. up‑to‑date infrastructure throughout the State will position the Country Fire Authority to provide the best possible response in emergency events. 2013-14 Budget Overview > 21
Attracting business and investment
The Victorian economy is both > A screen jobs, business and skills In addition, the Coalition Government diverse and flexible, with a highly package designed to support will provide $16 million to increased skilled workforce and strong export the screen sector and provide investment in Victoria, both locally performance. This makes it an attractive development and employment and from outside the State. $16 million place for businesses to invest and create opportunities for practitioners with will establish the Office of State employment opportunities. demonstrated creative skills. Development, and enable the new > Boosting the First Home Owner organisation to identify and capture Building employment Grant for new homes to $10 000 investment opportunities domestically opportunities and bringing forward stamp duty and internationally. cuts to promote the building of Commitments in the 2013-14 Budget to An additional $16 million will support new housing stock across Victoria, collaboration between Victorian public construction of transport infrastructure supporting jobs and reducing will leverage significant private sector sector agencies and Victorian small pressure on housing affordability. investment and generate many new businesses. These projects will develop job opportunities for Victorians. innovative products and services for The $1.6 billion expansion of the Boosting the Victorian use in the public sector, and create new Port of Melbourne is projected to tourism industry business and export opportunities for created an estimated 3 000 jobs; businesses with high growth potential. $66 million allocated for a new The Coalition Government recognises transport interchange at Ringwood the tourism industry is a vital Planning for better cities Station is helping to underpin a contributor to Victoria’s economy. $500 million expansion of Eastland The 2013-14 Budget allocates The 2013‑14 Budget funds several shopping centre, expected to generate $16 million over four years to enhance projects to plan for growth and change, 2 000 construction jobs and 2 000 this important industry. Funding and to cater for expected population ongoing retail jobs. of $8 million will implement the growth. By laying the groundwork now, China Tourism Strategy, which aims to the Coalition Government is building Announced in November 2012, the increase the number of international for the future. East Werribee Employment Precinct will visitors to Victoria from China. pave the way for a major new business The Coalition Government will also > $12 million for engineering works at and employment centre in Melbourne’s develop targeted industry partnerships Federation Square and to assess the west. When fully developed, the new commercial viability for development suburb will deliver 50 000 high quality and marketing activities to increase the number of international visitors from east of the current location. jobs across a range of industries and Federation Square has become one of sectors. This budget provides an initial other countries. Melbourne’s iconic locations, and the investment of $33 million to upgrade Government is ensuring it continues roads and the associated transport Enhancing Victoria’s infrastructure to accommodate new to be a place of important social and development and connect the precinct competitiveness community value. to regional and state transport networks. The Coalition Government is > $4.1 million to assess the committing $18 million to an development potential of the Other new investment and employment international education strategy for opportunities in this budget include: 23 hectare E-Gate site in West Victoria. This will deliver a package of Melbourne and develop options to > An employment start-up program initiatives to build on Victoria’s globally expand the Melbourne Convention to assist businesses with their competitive position as a quality and Exhibition Centre. recruitment requirements and provider of international education in support young job seekers to enter the Asia Pacific region. sustainable employment. 22 > 2013-14 Budget Overview
Delivering for Victorian families
Since coming to office, the Coalition Sustaining support for Helping those who are Government has put the concerns and needs of families at the core vulnerable children homeless or at risk of of its decision making, in particular The 2013‑14 Budget builds on the homelessness people living with disabilities, Coalition Government’s significant The 2013-14 Budget is continuing vulnerable children, and those at risk previous investments in protecting to provide assistance and support of homelessness. Initiatives across the Victoria’s vulnerable children. to vulnerable Victorians who are 2013-14 Budget support these families The 2012-13 Budget responded to homeless or at risk of homelessness. to reach their potential. the Protecting Victoria’s Vulnerable Initiatives include: Children Inquiry with a funded package Assisting families living of initiatives totalling $336 million, > $19 million to continue helping which will improve outcomes for families who are homeless or at risk with disabilities vulnerable children and sow the of homelessness to access affordable The Coalition Government is seeds for future reform. The Coalition and appropriate accommodation. undertaking concrete steps to Government augments this with an > A $4 million contribution to the improve the lives of Victorians with a additional $152 million over four years construction and implementation disability. In addition to the Coalition in this budget, including: of an innovative model of housing Government’s funding commitment > $18 million to support the provision support in Bendigo which will help of over $300 million to the launch of the 24‑hour child protection tenants build the skills needed of the National Disability Insurance emergency response service. to sustain long‑term tenancies Scheme, the 2013-14 Budget will independently. direct $266 million to improve > $91 million to address demand for out-of-home care placements, > $27 million to provide support services. Key initiatives funded this services for homeless Victorians budget include: and expand therapeutic foster care to improve the system’s as part of the National Partnership > $107 million over four years for capacity to respond to the needs of Agreement with the Commonwealth additional individual support complex clients. Government. packages for people living with > $21 million to provide effective > The development of a third youth a disability, including their carers specialist support to vulnerable foyer, delivering on the Government’s and families. students facing barriers to learning. election commitment to provide on‑campus accommodation for > $62 million to utilise innovative > An additional $3.8 million to protect models of accommodation to meet students who are homeless or at risk women and children from family of homelessness and want to study. the needs of complex clients. violence, building on the existing > $7.9 million to improve and funding increase of $16 million personalise the home environments over four years announced in of residents in State care. September 2012. > $4 million over three years to help people living with a disability to obtain the aids and equipment they need to improve their quality of life and build independent living skills. 2013-14 Budget Overview > 23 Photo: Places Victoria, Rob BlackburnPhoto: Places Victoria,
Managing cost of living pressures
Victoria has long been recognised as when the concession will be raised Encouraging water reuse one of Australia’s most liveable states. to 50 per cent. Investment of $22.5 million in the Office The Government is protecting this > The $7 000 First Home Owner Grant of Living Victoria will deliver Victoria’s quality of life for present and future for established homes will conclude water cycle reform as articulated by generations by reforming the way it from 1 July 2013. This reform is the Living Melbourne, Living Victoria supports housing affordability and the consistent with New South Wales, policy. This funding will complement costs of essential services. Queensland and South Australia. the previously announced $50 million Buyers of established first homes Living Victoria Fund, which was Targeting housing will be eligible for the 40 per cent implemented to encourage communities affordability duty concession. and neighbourhoods to take full advantage of rainwater, stormwater and As part of the 2013‑14 Budget, the recycled water in our urban areas. Coalition Government is targeting Assisting families, its support for first home buyers of concession card holders new homes to improve first home and senior Victorians A better waste affordability, increase jobs in the management approach housing construction sector and Concessions are provided by the With Victoria’s current waste policy increase the supply of housing to Coalition Government to assist (Towards Zero Waste) set to end in meet the demands of Victoria’s low income Victorians in paying 2014, the Victorian Government has growing population. essential services bills. The Coalition Government is supporting the growth conducted a review of the existing > The First Home Owner Grant for new in eligible concession card holders waste policy settings and practices, homes will be increased to $10 000 through funding of $55 million over drawing closely on consultation with from 1 July 2013. Targeting the four years in the 2013‑14 Budget, industry, government and community. grant to new homes only will better helping low income households meet $12 million has been provided in encourage construction, and facilitate the cost of energy and water bills and this budget to implement the new new housing supply. Eligible homes property rates. Victorian Waste and Resource Recovery will include those built under a home Policy. The reinvigorated program will building contract, those built by The budget also provides $2 million improve the environmental and public an owner‑builder, those purchased to support senior Victorians in health effects from landfills and other off‑the‑plan, and those sold for the accessing information, tools and waste management facilities on the first time as residential premises. programs to help them reduce household costs. This program will community, and seek to encourage > The 40 per cent First Home Buyer assist senior Victorians to stay in their lower levels of waste in the system, land transfer duty concession will own homes longer. reducing costs. be brought forward by six months, from 1 January 2014 to 1 July 2013. Bringing forward this concession will provide additional assistance to first home buyers in the second half of the 2013 calendar year. The 40 per cent concession will reduce the duty payable on a $400 000 home by around $6 500, increasing to more than $8 000 from 1 September 2014 24 > 2013-14 Budget Overview
Supporting the arts and multiculturalism
A vibrant arts scene The Arts Centre will receive an Celebrating Victoria’s rich additional $4 million to bring The Victorian arts and cultural sector world‑class cultural and artistic multiculturalism fosters vibrant communities and programs to Melbourne, and ensure Victoria is stronger for its rich helps build a stronger economy with Melbourne’s Arts Centre remains at the multiculturalism. The Coalition expanded opportunity. The Coalition forefront of performing arts in Australia. Government is supporting this in the Government recognises the importance 2013‑14 Budget through further grant of the arts sector as a major contributor The budget also invests $4.5 million to funding for Victoria’s peak multicultural to Victoria’s cultural exports, supporting stage a new statewide National Gallery organisations. The budget also provides artists and arts enterprises. of Victoria summer program, with additional funding to the Victorian an enhanced focus on contemporary The 2013‑14 Budget provides an Multicultural Commission. artists and children. The program additional $29 million to support the will include blockbuster exhibitions, Collectively, the Coalition Government’s arts sector. diverse online activities and the multicultural affairs initiatives are The Coalition Government will invest inaugural Melbourne Now exhibition, improving services for multicultural, $5.3 million to create a new grants to showcase local artists. newly arrived and culturally and program to support independent arts linguistically diverse people and In addition, the 2013‑14 Budget organisations across Victoria, including families across Victoria. provides $4 million to refurbish the regional Victoria. The program will National Gallery of Victoria International help organisations build leadership and and the Ian Potter Centre. This builds be innovative in the ways they engage on existing government investments audiences. to expand cultural infrastructure in The Melbourne International Film Victoria, including: Festival is coming into its 62nd year, > The redevelopment of Hamer Hall. and is firmly established as one of the world’s great film festivals and a > The design of a new Circus Oz highlight of the Melbourne cultural facility in Collingwood. calendar. Extending government > The development of a support of $5.3 million over the next blueprint for the future of the four years will ensure the festival Southbank Arts Precinct. maintains its place as the Southern Hemisphere’s largest and most prestigious film festival. If you would like to receive this publication in an accessible format please telephone 9651 0909 or email [email protected] This document is also available in PDF and WORD at www.budget.vic.gov.au 2013-14 Victorian Budget Budget Overview www.budget.vic.gov.au