Victorian Budget 2014|15 Building a Better

Budget Overview Contents

01 Budget at a glance 02 Strengthening Victoria’s finances 03 Building a stronger Victorian economy 04 State-shaping infrastructure to build a better Victoria 05 State-shaping infrastructure to build a better Victoria – Rail 08 State-shaping infrastructure to build a better Victoria – Integrating road and rail 09 State-shaping infrastructure to build a better Victoria – Road 10 Victoria’s infrastructure program 12 Investing in our future – Boosting skills, education and training 13 Strengthening health care and community services 14 Building a better regional Victoria 16 Building a safer Victoria

The Secretary This publication makes reference to the This work, 2014-15 Budget Overview, is Department of Treasury and Finance 2014-15 Budget Paper set which includes: licensed under a Creative Commons Attribution 1 Treasury Place Budget Paper No. 1 – Treasurer’s Speech 3.0 Australia licence. You are free to re-use the work under that licence, on the condition that Victoria, 3002 Budget Paper No. 2 – Strategy and Outlook you credit the State of Victoria (Department of Australia Budget Paper No. 3 – Service Delivery Treasury and Finance) as author and comply Telephone: +61 3 9651 5111 Budget Paper No. 4 – State Capital Program with the other licence terms. The licence does Facsimile: +61 3 9651 2062 Budget Paper No. 5 – Statement of Finances not apply to any images, photographs or Website: budget.vic.gov.au (incorporating Quarterly Financial Report No. 3) branding, including the Victorian Coat of Arms, the Victorian Government logo and the Authorised by the Victorian Government © State of Victoria 2014 Department of Treasury and Finance logo. 1 Treasury Place, Melbourne, 3002 Printed by Impact Digital, Brunswick Copyright queries may be directed to [email protected] ISSN 1440-6969 Published May 2014 Printed on recycled paper Budget at a glance

STRONG ECONOMY, STRONG SURPLUSES, MAJOR NEW JOB-CREATING INFRASTRUCTURE BUILDING A BETTER VICTORIA

UP TO MELBOURNE RAIL LINK INCLUDING AIRPORT RAIL LINK 30 MORE PEAK-HOUR SERVICES $ INCREASE NETWORK CAPACITY BY 30 PER CENT 27BILLION 3 NEW STATIONS RECORD STATE-SHAPING – MELBOURNE RAIL LINK INFRASTRUCTURE INVESTMENT – THE CRANBOURNE-PAKENHAM RAIL TO BETTER INTEGRATE VICTORIA’S CORRIDOR PROJECT RAIL AND ROAD NETWORKS, – EAST WEST LINK – WESTERN SECTION AND SOCIAL INFRASTRUCTURE – NEW SCHOOLS AND UPGRADES

INFRASTRUCTURE $ $1.2 BILLION INVESTMENT IN REGIONAL 3.3 DEBT INFRASTRUCTURE, INCLUDING: BILLION NET DEBT OF 6.3 PER CENT OF GROSS $ 2017-18 3.0 STATE PRODUCT IN 2014‑15 FALLING PRINCES BILLION 2015-16 TO 4.5 PER CENT IN 2017-18 $ WEST 362 DUPLICATION $1.3 $3.2 MILLION PROJECT BILLION BILLION $1.4 BILLION IN NEW HEALTH 2014-15 2016-17 SPENDING OVER FOUR YEARS $ $ OPERATING SURPLUS OF 180- 220 MILLION MURRAY BASIN RAIL $1.3 BILLION IN 2014‑15 PROJECT GROWING TO $3.3 BILLION SCHOOLS IN 2017‑18 FUNDING MAJOR LATROBE REGIONAL INFRASTRUCTURE PROJECTS $ HOSPITAL 73 REDEVELOPMENT $ MILLION JOBS AND TRAINING BARWON 2.8BILLION $ HEALTH-NORTH 28 FACILITY INITIATIVES AND GROWTH MILLION $ OVER FIVE YEARS MORE FRONTLINE SERVICES 1.2 COURTS PRECINCT BILLION CONTRIBUTING TO THE COALITION $ PER YEAR GOVERNMENT’S COMMITMENT 73MILLION FUNDING FOR VOCATIONAL EDUCATION OF $5.4 BILLION OF ADDITIONAL AND TRAINING THAT HELPS WORKERS AQUATIC ADAPT TO CHANGES IN OUR ECONOMY INVESTMENT IN SCHOOL EDUCATION OVER SIX YEARS $ CENTRE 15MILLION

JOB-CREATING FREE WI-FI ON INFRASTRUCTURE 3 70 0 PAYROLL TAX RATE $ V/LINE TRAINS AND JOBS REDUCED TO 40 TO REMOVE MOBILE MELBOURNE RAIL LINK MILLION PHONE BLACKSPOTS

EAST WEST LINK – 3 000 NEW INTERSECTION JOBS WESTERN SECTION 700 % $ ON THE CALDER JOBS 4.85 86 HIGHWAY AT FROM 1 JULY 2014, TO BENEFIT CITYLINK – TULLA WIDENING MILLION RAVENSWOOD 39 000 VICTORIAN EMPLOYERS NEAR BENDIGO

2014-15 Budget Overview 1 Strengthening Victoria’s finances

FORECAST GROWTH IN SURPLUS NET DEBT FORECAST TO DECLINE

3.3 6.3 3.2 6.1 3.0

4.7 4.6 4.5

1.3 0.9 BILLION PER CENT OF GSP 2013-14 2014-15 2015-16 2016-17 2017-18 2013-14 2014-15 2015-16 2016-17 2017-18

• ACTION TO MAINTAIN VICTORIA’S TRIPLE-A CREDIT RATING • MANAGING FINANCES TO HELP FUND RECORD INFRASTRUCTURE

Strong budget discipline over four consecutive budgets has allowed the EXPENSES GROWTH(a) Coalition Government to fund a record 12.6 infrastructure program of up to $27 billion and deliver high-quality 10.5 frontline services. 9.4

The Coalition Government is continuing 7.7 7.3 7.7 BUDGET AND 6.8 FORWARD ESTIMATES to responsibly manage net debt. Net 6.4 debt is falling over the next four years 5.9 5.9 as a percentage of gross state product, CENT PER 4.0 3.6 3.9 and net infrastructure spending is 2.7 2.8 3.1 forecast to be fully funded by cash AVERAGE 2.1 from operations from 2015-16. 0.7 To maintain Victoria’s triple-A credit rating, the strongest amongst the states, the Coalition Government has acted decisively to bring spending under 2011-12 2017-18 2016-17 2012-13 2015-16 2013-14 2014-15 2010-11 2001-02 2009-10 2002-03 2007-08 2003-04 2006-07 2005-06 2004-05 2008-09 control while growing frontline services. 2000-01 Victoria is the only state or territory (a) The expenses growth for 2013-14 excludes the impact of the revised AASB119 Employee Benefits. to forecast surpluses for each of the next four years. In 2014‑15, the Victorian economy VICTORIA’S ECONOMIC FORECASTS is expected to grow by 2.5 per cent, per cent rising to 2.75 per cent over the forecast 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 period. Employment growth is expected Actual Forecast Forecast Forecast Forecast Forecast to be near trend of 1.5 per cent, while the unemployment rate is expected to Real gross state product 1.6 2.00 2.50 2.75 2.75 2.75 remain stable at 6.25 per cent, before Employment 0.8 0.75 1.25 1.50 1.50 1.50 gradually declining to 5.5 per cent over Unemployment rate 5.7 6.25 6.25 6.00 5.75 5.50 the forecast period. Consumer price index 2.2 2.75 2.25 2.50 2.50 2.50

Wage price index 3.3 2.75 3.25 3.50 3.50 3.50

Population 1.9 1.8 1.8 1.8 1.8 1.8

2 2014-15 Budget Overview Building a stronger Victorian economy

STRONG AND DIVERSE SOLID GROWTH IN GROSS STATE GROWTH INDUSTRIES PRODUCT

FOOD & FIBRE INTERNATIONAL TOURISM EDUCATION 2.5% IN 2014-15 UP FROM 2 PER CENT IN 2013-14

FINANCIAL & FREIGHT & INSURANCE SERVICES LOGISTICS

• INVESTING IN INFRASTRUCTURE, TRAINING AND EDUCATION TO CREATE JOBS, INCREASE PRODUCTIVITY AND GROW THE ECONOMY

The Coalition Government’s record investment on transformational new A growing Victoria infrastructure projects and funding for education and training will create new Victoria is one of the fastest-growing states with near record population opportunities and jobs, and increase growth at 1.8 per cent annually. This reflects Victoria’s liveability driven productivity and economic growth. by strong economic management and sound investment opportunities for business and industry. Overall, population growth is expected to remain Victoria has a diverse and flexible high by historical standards, easing slightly from 1.9 per cent in 2012-13 economy and is well positioned to to 1.8 per cent over the forecast period. take advantage of new and growing sectors to drive economic growth both domestically and internationally, HIGHEST NET INTERSTATE MIGRATION IN 30 YEARS including in: DECEMBER 2012 – SEPTEMBER 2013 – food and fibre exports; – international education; – tourism; – financial and insurance services; and NT – freight and logistics. -363 QLD The agricultural industry is critical to regional Victoria, and the Coalition 796 Government’s $35 million Food and WA Agriculture into Asia will support emerging export opportunities created -601 NSW by the increasing demand from the SA growing consumer class in Asia. 1 632 3 818 ACT 719

TAS NET 6 903 INCREASE IN 902 VICTORIA’S POPULATION

2014-15 Budget Overview 3 State-shaping infrastructure to build a better Victoria

CHANGING THE WAY PEOPLE, GOODS AND SERVICES MOVE AND CONNECT THROUGHOUT VICTORIA UP TO $ 24BILLION FOR NEW TRANSPORT INFRASTRUCTURE PROJECTS

• INCREASING TRANSPORT CAPACITY AND RELIABILITY • BOOSTING WORLD‑CLASS FREIGHT AND LOGISTICS • PROVIDING BETTER ACCESS TO SERVICES

The Coalition Government is delivering a program of job-creating GOVERNMENT INFRASTRUCTURE INVESTMENT major infrastructure projects that will transform Victoria. 7.5 The Coalition Government’s 7.1 6.4 6.4 infrastructure program delivers 5.8 planned and targeted initiatives 5.3 5.4 5.4 5.0 5.2 that will build a better Victoria 4.4 4.5 by improving liveability, creating BILLION 3.3 new jobs and boosting the 3.1 2.7 productivity of our local industries 2.0 2.2 as they compete globally. 1.6 AVERAGE In total, Victoria’s transport infrastructure program of up to $24 billion of new projects will deliver jobs, from office-based engineering and design roles to 2011-12 2017-18 2016-17 2012-13 2015-16 2013-14 2014-15 2010-11 2001-02 2009-10 2002-03 2007-08 2003-04 2006-07 2005-06 2004-05 2008-09 onsite roadworks and building and 2000-01 construction jobs, plus the small businesses that support them. State-shaping projects across the rail, road and freight networks Asset recycling opportunities The Coalition Government will enter PORT OF MELBOURNE - will dramatically change the way ASSET RECYCLING people, goods and services move into a medium-term lease over the right throughout Victoria. operations of the Port of Melbourne to create capacity on the State’s balance Transforming the way Victoria sheet. The Commonwealth and Victorian moves will grow the economy, Coalition Governments are working create jobs, improve efficiency and together to deliver significant projects the scale of freight and logistics, for Victoria. increase productivity and better $ link people, products and markets. Victoria stands to benefit from the Commonwealth’s new asset recycling initiative, which aims to encourage and support States to divest existing assets such as ports and reinvest the proceeds $ in major new economic infrastructure.

4 2014-15 Budget Overview State-shaping infrastructure to build a better Victoria – Rail

MELBOURNE RAIL LINK INCLUDING AIRPORT RAIL LINK 25 MINUTES 3 7 0 0 TRAVEL TIME BETWEEN THE CBD AND $ $ JOBS 8.5- 11 AT THE PEAK OF EXTRA CAPACITY BILLION CONSTRUCTION 30 MORE PEAK-HOUR SERVICES INCREASE NETWORK CAPACITY BY 30 PER CENT 3 NEW STATIONS

NEW STATIONS • MELBOURNE AIRPORT • DOMAIN (UNDERGROUND) • FISHERMANS BEND/MONTAGUE (UNDERGROUND)

• MEETING GROWING POPULATION TRANSPORT NEEDS • EASING CONGESTION • IMPROVING TRAVEL TIMES • INCREASING RELIABILITY • CONNECTING PEOPLE TO JOBS

Rail Network TO AIRPORT TO UPFIELD TO SOUTH MORANG/HURSTBRIDGE Melbourne Rail Link The Melbourne Rail Link will transform SOUTH KENSINGTON our rail network and create 3 700 jobs Victoria St Royal Pde at its peak of construction. A new rail NORTH Hoddle St tunnel from South Yarra to Southern MELBOURNE Cross Station will deliver 30 additional peak-hour services across the network. Latrobe St

With the addition of new high-capacity King St CBD JOLIMONT trains, it will also increase capacity within Citylink the City Loop to upgrade services on SOUTHERN CROSS FLINDERS other rail lines. STREET Construction of a tunnel from South Yarra to Southern Cross Station will RICHMOND significantly increase transport capacity West Gate Fwy and reliability for Melbourne’s growth areas, better connecting people to jobs. FISHERMANS BEND (MONTAGUE) Domain Rd The Coalition Government will also commence construction on the Airport DOMAIN Rail Link. The Airport Rail Link will introduce a new electrified service

St Kild SOUTH running along dedicated tracks from YARRA a new station at Melbourne Airport to a Rd Albion in Melbourne’s west, where it will join the existing rail network and

run through to Southern Cross Station. Punt Rd The Airport Rail Link will cement Melbourne’s status as a global city by Melbourne Rail Link providing a fast, frequent and reliable Existing rail TO SANDRINGHAM train service every 10 minutes during the day. tram network and improving bus The Coalition Government’s record services to the precinct. investment of up to $11 billion is The Melbourne Rail Link will deliver delivering an integrated and modern improvements to public transport services Detailed planning and project rail network. to support the continued growth of development is under way with Melbourne’s inner north and its expansion early works commencing in mid-2016 as a key economic cluster. This will and construction in mid-2017. include enhancing and re-aligning the

2014-15 Budget Overview 5 CRANBOURNE-PAKENHAM RAIL CORRIDOR PROJECT REMOVING FOUR MORE LEVEL CROSSINGS 30% BOOST TO SERVICES $ 685MILLION $ $ OVER FOUR 2– 2.5 YEARS BILLION

BRINGING TOTAL INVESTMENT IN THE 2014-15 BUDGET TO MORE THAN $1 BILLION

• EASING CONGESTION AND IMPROVING SAFETY OF THE TRANSPORT NETWORK • 1 IN 10 MELBURNIANS TO BENEFIT FROM IMPROVED SERVICES • GIPPSLAND V/LINE SERVICES TO BENEFIT FROM IMPROVED RELIABILITY

Cranbourne-Pakenham Rail – remove four congested level crossings at: Removing level crossings Corridor project > Murrumbeena Road, Murrumbeena; The Coalition Government has now The $2–$2.5 billion Cranbourne-Pakenham > Koornang Road, Carnegie; allocated planning and/or construction Rail Corridor project will significantly > Clayton Road, Clayton; and funding for 40 level crossing removals improve rail services for one in every > Centre Road, Clayton. and grade separations – the largest such 10 Melburnians. This project will: – plan for the removal of an additional program on record. – boost services by 30 per cent on five level crossings at: The program has already removed level Melbourne’s busiest suburban line; > Corrigan, Heatherton and crossings at: – provide 25 next-generation, Chandler roads, Noble Park; – Mitcham Road, Mitcham; high-capacity trains that, combined > Grange Road, Carnegie; and – Rooks Road, Mitcham; with additional services, will provide > Poath Road, Murrumbeena. – Springvale Road, Springvale; and room for an additional 4 500 – rebuild stations at Clayton, – Anderson Road South, Sunshine as passengers in the peak hour; Carnegie and Murrumbeena; and part of the Regional Rail Link project, – deliver two additional services in – build a new depot. the peak hour; with the Anderson Road North level crossing removal close to completion. – install high-capacity signalling enabling V/Line Gippsland commuters will also more trains to run more reliably; benefit from a more reliable journey Planning and early works were funded through the metropolitan area. in the 2013-14 Budget for the removal of level crossings at and Scoresby Road, Bayswater.

MELTON TO SUNBURY TO UPFIELD TO SOUTH MORANG TO HURSTBRIDGE

Main Rd

TO CRAIGIEBURN LILYDALE Christies Rd Deer Park Bypass Anderson Anderson Rd North Rd South RooksMitcham Rd Rd Davis Boundary Rd Rd Blackburn Rd Leakes Rd Dohertys Rd Mountain Rd Tarneit DerrimutRd Rd Burke Rd Scoresby Rd Ballan Rd ALAMEIN Manor Lakes Bvd WILLIAMSTOWN Greens Rd GLEN WAVERLEY Black Forrest Rd Grange Rd Murrumbeena Rd Koornang Rd Poath Rd WERRIBEE PORT OF MELBOURNE North Rd Clayton Rd BELGRAVE Bulban Rd Centre Rd SANDRINGHAM Existing Rail Corrigan Rd Regional Rail Link (under construction) Springvale Rd Heatherton Rd Level Crossings removals completed Grade separations being Chandler Rd Level Crossings removals underway delivered as part of the Level Crossings removals planned Regional Rail Link project TO CRANBOURNE TO PAKENHAM

6 2014-15 Budget Overview MURRAY BASIN RAIL PROJECT MORE AFFORDABLE COMMUTER SAVINGS PUBLIC TRANSPORT ON RAIL TRAVEL

SAVING $ 180– MAKING JOBS AT PEAK OF $ PUBLIC $ CONSTRUCTION 220 300 TRANSPORT 5 FREE MORE PER DAY MILLION TRAM TRAVEL FOR ZONE 1 & 2 AFFORDABLE TRAVELLERS

BENEFITS TO REGIONAL FOR CBD AND DOCKLANDS INDUSTRY

The 2014-15 Budget invests $685 million upgrades on the to Maryborough City Loop upgrade to remove four level crossings, supporting and Murtoa to Hopetoun rail lines, and The Coalition Government will around 1 000 jobs during the peak of finalise the business case for the Mildura invest $44 million to upgrade fire construction. These level crossings are at: to standardisation. The final and emergency equipment within – Main Road, St Albans (as part of cost and alignment of the Mildura to the City Loop. Upgrades will include the Regional Rail Link project); Geelong rail standardisation will be water hydrants, emergency lighting, guided by the final business case to – Blackburn Road, Blackburn; fire detection systems, and improvements be delivered before the end of 2014. – North Road, Ormond; and to automation for power shutdown, escalators and platform announcements. – Burke Road, Glen Iris. Regional Rail Link The Coalition Government has now Construction of the Regional Rail Link More affordable public transport funded removal of eight of the 10 level is currently ahead of schedule. The The Coalition Government is helping crossings identified as priorities in its first service to use this new rail line is to ease cost of living pressures by: Metro Level Crossing Blitz election expected to start by mid-2015, and the St Albans level crossing removal is due – providing free tram travel in commitment. The 2014-15 Budget Melbourne’s CBD and Docklands; provides an additional $21 million to to be completed in 2017. The project – enabling bus, train and tram plan for the next seven priority level created around 3 600 jobs at the peak commuters to travel in Zones 1 and crossing removal projects. of construction. Through dedicated regional tracks from West Werribee 2 for the price of a Zone 1 fare; Murray Basin Rail Project Junction to Southern Cross Station, – enabling full-fare commuters who this landmark project will remove The Murray Basin Rail Project will currently buy a Zone 1 and 2 fare to major bottlenecks in Victoria’s rail save about $5 per day, equating to commit up to $220 million over four network. V/Line commuters from years to undertake major country rail savings of around $1 200 each year, , Bendigo and Geelong will and commuters who currently use freight upgrades and standardise the see improved travel times and reliability key Mildura to Geelong rail link. an annual myki pass to save more by separating the regional and metro than $750; The first stage of the Murray Basin rail network. Rail Project will undertake immediate – allowing commuters who currently travel in Zone 2 only, to benefit from Zone 2 fares remaining at their lower rate; and MURRAY BASIN RAIL PROJECT – easing daily traffic congestion in the suburbs. $180-$220 MILLION UPGRADE

2014-15 Budget Overview 7 State-shaping infrastructure to build a better Victoria – Integrating road and rail

N

TO CRAIGIEBURN TO SOUTH MORANG MELBOURNE RAIL LINK – Construction from mid-2016 UPFIELD Hume Fwy – $8.5–$11 billion AIRPORT – 3 700 jobs created during Tullamarine Fwy the peak of construction

EAST WEST LINK – EASTERN SECTION Rd Melbourne Metro Ring Airport – Construction from late‑2014 tern Ring Rd Wes – $6–$8 billion – 3 200 jobs created during the peak of construction Ca lder F EAST WEST LINK – wy WESTERN SECTION – Construction from late-2015 English St – $8–$10 billion – 3 000 jobs created during the peak of construction TO SUNBURY B ell St CITYLINK – TULLA d WIDENING R g n – Construction from Ri n early-2015 ter – up to $850 million d

R Wes – 700 jobs created during

y TO HURSTBRIDGE e

k n i L y t i

C the peak of construction

dn

y S CRANBOURNE- PAKENHAM RAIL CORRIDOR PROJECT – Construction from Balla early-2015 rat – $2–$2.5 billion Rd TO MELTON East West Link

Vic toria St

TO BELGRAVE LILYDALE

TO GLEN WAVERLEY y FISHERMANS BEND Hw (MONTAGUE) Punt Rd inces Pr Toorak Rd DOMAIN SOUTH YARRA

TO WERRIBEE

WILLIAMSTOWN

Nepean Hwy PORT PHILLIP TO CRANBOURNE/ PAKENHAM

TO FRANKSTON

Melbourne Rail Link CityLink – Tulla widening East West Link – Eastern Section Cranbourne-Pakenham Rail Corridor project East West Link – Western Section Existing rail TO SANDRINGHAM

8 2014-15 Budget Overview State-shaping infrastructure to build a better Victoria – Road

EAST WEST LINK – WESTERN CITYLINK – TULLA WIDENING SECTION 700 JOBS CREATED DURING THE PEAK OF CONSTRUCTION WEST $8-$10 DUPLICATION PROJECT BILLION COMPLETE WESTERN $ SECTION 362 MILLION TO DUPLICATE 37 KM OF HIGHWAY BETWEEN WINCHELSEA AND COLAC

• EASING CONGESTION • BENEFITING REGIONAL AND URBAN COMMUTERS • SECURING THE FREIGHT TRANSPORT NETWORK • INCREASING PRODUCTIVITY

East West Link – completing the CityLink – Tulla widening The Princes Highway West Western Section Up to $850 million will be invested duplication project – Winchelsea The Coalition Government will complete in partnership with the private sector to Colac the East West Link to relieve chronic to widen the Western Section of The Princes Highway is the key east-west traffic congestion in Melbourne’s inner Melbourne’s integral CityLink network. route in south-western Victoria, and north and west, unlocking the western This project will create around 700 jobs the Coalition Government will provide suburbs growth corridor. during the peak of construction. This $362 million to duplicate 37 kilometres project will complement the Airport of highway between Winchelsea and Commuters from Victoria’s regional Rail Link with new lanes and improved centres in Geelong and Ballarat will Colac. This will support around 250 jobs operations, getting people and goods during the peak of construction. benefit from a reduced reliance on the from the CBD and the Port of Melbourne . The reliability of to the airport faster, as well as supporting In addition, $11 million has been allocated Victoria’s transport network will be Victoria’s growing tourism sector. to deliver three new overtaking lanes improved by a much-needed alternate A minimum of one extra lane will be on Gippsland’s Princes Highway East route to the current river crossing. added to each side of the freeway, as between Nowa Nowa and Orbost, and Tendering for the Eastern Section is well as an additional lane for traffic $32 million will be provided to upgrade already under way with works expected heading inbound from the Tullamarine the Sand Road and Princes Highway to commence in late 2014. The Western Freeway, just north of English Street, intersection. Section, delivering the much needed to the . The Commonwealth Government is alternate route to the , contributing $209 million to these projects. will commence construction in late 2015, creating 3 000 jobs at the peak Enhancing Victoria’s roads of construction. The Coalition Government is investing in road infrastructure in metropolitan Melbourne and regional Victoria to EAST WEST LINK – WESTERN SECTION JOBS improve overall road safety and access, and ease congestion. In 2014‑15, the Coalition Government will provide an additional $370 million to maintain, 3 000 restore and improve other parts of our JOBS road network. This includes new funding AT THE PEAK OF of $50 million for capital restoration CONSTRUCTION works and an extra $80 million for road maintenance and resealing.

2014-15 Budget Overview 9 Victoria’s infrastructure program

2011 2012 2013 2014 2015 2016

East West Link – Eastern Section late 2014

East West Link – Western Section late 2015

Melbourne Rail Link

Cranbourne-Pakenham Rail Corridor 2015

CityLink – Tulla widening 2015

Monash Children’s Hospital late 2013

Box Hill Hospital late 2012

Royal Victorian Eye and Ear Hospital 2013

New Bendigo Hospital mid 2012

Victorian Comprehensive 2011 Cancer Centre

Murray Basin Rail Project mid 2014

Regional Rail Link mid 2012

Latrobe Regional Hospital mid 2014

Additional prison capacity 2011

12 new schools mid 2014

10 2014-15 Budget Overview Victoria’s infrastructure program

2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

East West Link – Eastern Section

East West Link – Western Section

Melbourne Rail Link mid 2016

Cranbourne-Pakenham Rail Corridor

CityLink – Tulla widening

Monash Children’s Hospital

Box Hill Hospital

Royal Victorian Eye and Ear Hospital

New Bendigo Hospital

Victorian Comprehensive Cancer Centre

Murray Basin Rail Project

Regional Rail Link

Latrobe Regional Hospital

Additional prison capacity

12 new schools

Procurement and project delivery

Project already under way

Construction expected to commence

2014-15 Budget Overview 11 Investing in our future – Boosting skills, education and training

MAJOR COMMITMENT SIGNIFICANT VOCATIONAL IN SCHOOLS FOR THE FUTURE EDUCATION AND TRAINING FUNDING $ $ 2.8BILLION 1.2BILLION INITIATIVES AND PER YEAR GROWTH OVER FIVE YEARS

• RESKILLING WORKERS TO TRANSITION INTO NEW AND GROWING INDUSTRY SECTORS • MAJOR INVESTMENT IN SCHOOLS • FURTHER SUPPORT FOR STUDENTS WITH DISABILITIES

Investing in the skills community. Additional funding will In addition, the Coalition Government be provided in future budgets to deliver will provide $500 million to build and that lead to jobs on the full six year commitment. upgrade government school facilities, Funding for skills amounts to including: $1.2 billion per year. The Coalition The Coalition Government’s schools package supports students, investing: – 12 new schools, of which three schools Government is also investing will be built in regional Victoria; and $30 million in training for automotive – $564 million for schools to raise workers. Investing in vocational education performance with targeted funding – $271 million for school upgrades and and training will boost Victoria’s for disadvantaged students; improvements. workforce capability and assist workers – $273 million for more resources The private sector will be invited to to transition into new and growing for students with disabilities; deliver components of the school capital industry sectors. – $32 million for bus services to transport program under a public-private Victoria is enabling the higher students with disabilities; and partnership arrangement. qualifications required by modern – $691 million for increased enrolment industries, and achieving this faster than demand from Victoria’s population growth. the rest of Australia. With the Coalition Government’s support, workers seeking to upgrade their skills will have more INCREASE IN GOVERNMENT-SUBSIDISED ENROLMENTS opportunities to secure jobs in the IN SPECIALISED AND IN-SHORTAGE OCCUPATIONS growth sectors of Victoria’s economy. 90 300 2013 154 300 Record investment in our 2012 79 500 schools for the future 151 800 The Coalition Government is investing 2011 71 100 an additional $5.4 billion for schools 127 600 to deliver high-quality education over SPECIALISED six years. In the 2014-15 Budget, the 2010 64 200 Coalition Government will deliver 105 300 IN-SHORTAGE $1.6 billion over five years (including an initial contribution from the

Commonwealth) for initiatives and MORE THAN enrolment funding, together with State funding growth of $1.2 billion. The bulk of this funding is provided directly to government and non-government 12 70 schools, which are best placed to NEW SCHOOLS ensure resources are allocated where SCHOOLS RECEIVE UPGRADES AND WORKS they are most needed for their school

12 2014-15 Budget Overview Strengthening health care and community services

HEALTH SERVICES MENTAL HEALTH AND DRUG SERVICES $156 MILLION $1.4 $190 OVER FOUR YEARS BILLION MILLION SUPPORT FOR PEOPLE WITH A DISABILITY

BOOST TO HEALTH OVER TO BOOST ELECTIVE FOUR YEARS SURGERY OVER FOUR $ YEARS 200MILLION OVER FOUR YEARS

• QUALITY SERVICES TO MEET DEMANDS OF A GROWING POPULATION • SUPPORT FOR GROWING REGIONAL COMMUNITIES

To support a growing population and and $14 million for the Hospital The Coalition Government is investing increased demand for services, the redevelopment, which will include a $200 million over four years to support Coalition Government has a clear plan new 32 bed facility. These investments Victorians with a serious disability to to provide quality health care for all will provide a range of essential services make choices about the services that Victorians. Improving patient access to to growing regional communities. best suit their needs. Investment in health services is fundamental to In the past four years the Coalition disability services in 2014-15 is now Victorians’ quality of life. Government has invested billions of $300 million more than when the dollars in health infrastructure programs Coalition came to government. The 2014-15 Budget delivers an additional that includes: $1.4 billion over four years to support The Coalition Government has also made hospitals, including $60 million to boost – the $1 billion Victorian a significant contribution to establish health service capacity in 2014-15 over Comprehensive Cancer Centre; the National Disability Insurance Scheme. the winter peak. This is in addition to – the $630 million Bendigo Hospital; Victoria has a leading role in trialling the record investment in 2013‑14 of – $448 million for the Box Hill Hospital the NDIS in the Barwon area and the $1.8 billion over four years to Victoria’s redevelopment; national headquarters will be located in hospitals and health system. – $250 million for the Monash Geelong, creating 300 jobs in the region. The Coalition Government’s investment Children’s Hospital; The Coalition Government will continue includes an additional $156 million over – $55 million for the Peter Doherty to support a new National Partnership four years to better support Victorians Institute; Agreement on Homelessness over the with a mental illness or drug and – $165 million for the redevelopment next four years. This Agreement will alcohol addiction. of the Royal Victorian Eye and Ear support vulnerable Victorians who are The Coalition Government will spend Hospital; homeless or at risk of homelessness, $73 million on the Latrobe Regional – $81 million for the Frankston Hospital including rough sleepers, people with Hospital redevelopment. In addition, in-patient expansion, emergency a mental illness, women with children $28 million will be provided to develop department and sub-acute beds; experiencing family violence, and the new Barwon Health-North Facility, young people who have experienced – $98 million for the Geelong Hospital family breakdown. major upgrade and sub-acute beds; MORE HEALTH PROFESSIONALS – $14 million for the new Melton Community Health Centre (including HEALTH SYSTEM FUNDING 961 $5 million funded through the Growth MORE DOCTORS Areas Infrastructure Contribution); $ – $9 million for the Austin Short Stay 15BILLION 1 7 4 8 Unit expansion; and 2014-15 MORE NURSES – $5 million for the expansion of the 856 Healesville Hospital. MORE ALLIED HEALTH PROFESSIONALS

BETWEEN 30 JUNE 2010-2013

2014-15 Budget Overview 13 Building a better regional Victoria

CALDER HIGHWAY EAGLEHAWK REDEVELOPMENT PRIMARY SCHOOL $86 million to rebuild $1.6 million upgrade. the at MURRAY BASIN RAIL Ravenswood. PROJECT $180–$220 million to upgrade and standardise country rail freight BENDIGO AQUATIC lines in western Victoria. CENTRE $15 million contribution for a new pool facility. POLICE STATION BOORT HOSPITAL $14 million $14 million for redevelopment, replacement. including a new 32 bed facility.

EMERGENCY SERVICES PRECINCT $8 million for a new police station and new emergency services precinct at Ballarat West.

EMPLOYMENT ZONE $30 million for a Ballarat West Employment Zone.

BALLARAT HIGH SCHOOL $7.8 million upgrade.

GREAT OCEAN ROAD UPGRADE $50 million to enhance the road and bridges from Torquay to Allansford, east of Warrnambool.

PRINCES HIGHWAY PIONEER ROAD, WAURN WEST DUPLICATION PONDS DUPLICATION BARWON AREA $362 million to duplicate $13 million to duplicate Pioneer National Disability Insurance Scheme 37 kilometres between Road from Waurn Ponds shopping trial in Barwon area, and NDIS Winchelsea and Colac. centre to Meadowvale Drive. national headquarters in Geelong.

14 2014-15 Budget Overview INITIATIVES TO SUPPORT SHEPPARTON COURTS WI-FI AND REMOVING REGIONAL VICTORIA MOBILE PHONE BLACKSPOTS $73 million for the Shepparton $13 million to improve tourism courts precinct development. $40 million to deliver free in national parks, state forests Wi-Fi on V/Line trains and and on public land. removing mobile phone blackspots. More than $730 million in total to maintain, restore and improve Victoria’s regional road networks. YARRAWONGA COLLEGE $7.6 million upgrade. $13 million for Tasers for all EAST WEST LINK 24-hour regional police stations. $6–$8 billion to build the Eastern Section, and $8–$10 billion $35 million for Food and to build the Western Section, Agriculture into Asia. providing an alternative route $2 million to improve wild dog REGIONAL RAIL LINK to the West Gate Bridge for control. $4.1 billion to build commuters from Ballarat to dedicated regional tracks Geelong. $4 million for a coal development from West Werribee to strategy to maximise market Southern Cross Station, removing major opportunities and economic bottlenecks in Victoria’s rail network. benefits to the state. WODONGA WEST $9 million to provide planning PRIMARY SCHOOL support for regional councils to $3.8 million upgrade. ensure investment opportunities are maximised.

$3 million to provide support for regional councils to assess CRANBOURNE-PAKENHAM infrastructure demand, develop RAIL CORRIDOR PROJECT business cases and manage projects. $2–$2.5 billion. This program will deliver benefits for V/Line $29 million for 78 vehicles for Gippsland commuters for a Country Fire Authority brigades more reliable journey through across Victoria. metropolitan areas. $24 million for a Bushfire and Hazelwood Mine Fire Recovery Package. LATROBE REGIONAL HOSPITAL STATEWIDE $73 million redevelopment. Over $1.2 billion a year for vocational education and training funding.

PRINCES HIGHWAY $2.8 billion for school intiatives EAST and growth over five years. $11 million for three new overtaking lanes $500 million for school on Princes Highway East infrastructure funding including between Nowa Nowa and Orbost. upgrades and 12 new schools. $447 million to increase prison capacity across Victoria. NEW REGIONAL SCHOOLS $210 million statewide to build new schools, including North Geelong BARWON HEALTH-NORTH FACILITY Special Developmental School and $28 million to provide an urgent care Torquay North P–6, and re-locating the centre and co-location of GP services. existing Bannockburn Primary School.

2014-15 Budget Overview 15 Building a safer Victoria

SUPPORTING TOUGHER NEW POLICE STATIONS SENTENCING AND PAROLE LAWS $33 MILLION $447 FOR NEW POLICE STATIONS MILLION EXPANDING PRISON CAPACITY

Building a safer Victoria remains a key including at Dame Phyllis Frost Centre, This is in addition to the Coalition priority for the Coalition Government. Beechworth Correctional Centre and Government’s previous commitments The 2014-15 Budget builds on the Langi Kal Kal Prison. of $56 million to upgrade more than comprehensive package provided over 100 police stations. the past three years to ensure Victorians Building and upgrading are safer. Fire services Victoria’s police stations Since 2011‑12, the Coalition Government The Coalition Government is completing has invested more than $3.1 billion in Increasing prison capacity the largest recruitment in Victoria Victoria’s fire services. In 2014‑15, a In 2014‑15, the Coalition Government Police’s history with 1 700 additional $783 million investment in fire services will invest $447 million to expand police officers and 940 Protective will: Victoria’s prison capacity, supporting Services Officers. The 2014-15 Budget – increase the Country Fire Authority’s important sentencing and parole reforms. delivers $13 million for taser equipment budget by 2.5 per cent; The Coalition Government’s commitments for 24 hour police units in regional will employ an additional 110 ongoing – increase the Metropolitan Fire Brigade’s Victoria, and $12 million to re-locate budget by 3.1 per cent; prison jobs across Victoria. the Victoria Police Mounted Branch – purchase 78 new vehicles for Country Since the start of 2011, more than from South Melbourne to redeveloped stables in Attwood. Building on previous Fire Authority brigades across the State; 1 200 new beds have been opened and with more than 2 900 in the pipeline. commitments to build and refurbish These include the new 1 000 bed 11 police stations, $33 million is being – replace all existing respiratory medium-security prison in Ravenhall, invested in: protection equipment to support fire which will support around 650 jobs – a new Echuca Police Station; engagement and improve occupational health and safety for firefighters. at the peak of construction, and a – the St Kilda Road Station replacement; new 40 bed unit at Barwon Prison. and The 2014-15 Budget increases prison – a new police station and emergency capacity by 871 beds, and provides new services precinct at Ballarat West. COUNTRY FIRE AUTHORITY units, relocatable units and infrastructure INVESTMENT upgrades across the prison system,

COUNTRY FIRE AUTHORITY METROPOLITAN FIRE BRIGADE $ $ 78 457MILLION NEW TOTAL FUNDING 326MILLION IN 2014-15 2.5% 3.1% INCREASE TOTAL FUNDING INCREASE VEHICLES FROM 2013-14 IN 2014-15 FROM 2013-14

16 2014-15 Budget Overview 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 budget.vic.gov.au. 2014-15 Victorian Budget Budget Overview budget.vic.gov.au