State Budget 2014: Building a better Victoria



Economic outlook

Delivering a stronger economy

Through disciplined financial management the Napthine Government is able to deliver a transformational Budget that will benefit all Victorians.

Delivering the dividends of fixing the budget and strong financial management
The Napthine Government’s record investment on new infrastructure projects and funding for education and training will create new opportunities, thousands of new jobs and increase productivity and economic growth.

  • Spending up to $27 billion on record state-shaping infrastructure projects to better integrate Victoria’s rail and road networks and social infrastructure.


Job-creating infrastructure investments includes:

  • Melbourne Rail Link, Airport Link – 3700 jobs
  • East West Link – Western section – 3000 jobs
  • CityLink – Tulla widening – 700 jobs
  • This Budget delivers a $1.3 billion surplus, growing to $3.3 billion in 2017-18, helping to fund major infrastructure projects across the State. The infrastructure program will generate tens of thousands of new jobs. 
  • Victoria is the only state or territory to forecast surpluses for each of the next four years.
  • To maintain Victoria’s triple-A credit rating, the Napthine Government has acted decisively to bring spending under control while growing frontline services.
  • In 2014-15 the Victorian economy is expected to grow by
  • 2.5 per cent, rising to 2.75 per cent in 2017-18.
  • Helping Victorian businesses to reduce their costs and increase employment by cutting payroll tax to 4.85%. This will be the lowest payroll tax in Australia for payrolls between $4.7 and $26.7 million.

“Our strong financial position is enabling us to invest in infrastructure, training and education. This will create thousands of new jobs, increase productivity and grow the economy.”

Denis Napthine MP, Premier



Infrastructure program

Infrastructure to build prosperity

The Napthine Government is delivering a program of job-creating major infrastructure projects that will transform Victoria.

The Napthine Government will build a better Victoria by improving liveability, creating new jobs and boosting the productivity of our local industries as they compete globally.
Victoria’s major transport infrastructure projects of up to $24 billion will deliver tens of thousands new jobs – from office-based engineering and design roles to onsite roadworks and building and construction jobs, plus the small businesses that support them.
New Rail infrastructure and more services

  • The Melbourne Rail Link will transform our rail network and create 3700 new jobs at its peak of construction.
  • A new rail tunnel from South Yarra to Southern Cross Station will significantly increase transport capacity and reliability for Melbourne’s growth areas.
  • The Airport Rail Link will connect Melbourne Airport to Southern Cross Station delivering a reliable, convenient and efficient rail link with services every 10 minutes during peak hours.
  • $2-2.5 billion Cranbourne-Pakenham Rail Corridor project will significantly improve rail services for one in every ten Melburnians.
  • The largest level crossing removal program on record, with funding for delivery or planning of 40 level crossing removals and grade separations.

New Roads and better connectivity

  • East West Link will relieve chronic traffic congestion in Melbourne’s inner north and west, unlocking the western suburbs growth corridor.
  • CityLink-Tulla Widening will add a minimum of one extra lane to each side of the freeway as well as an additional lane for traffic heading inbound on the Bolte Bridge.
  • Princes Highway West duplication – $362 million to duplicate 37 kilometres of highway between Winchelsea and Colac.

“Transforming the way Victoria moves will grow the economy, create jobs and better link people, products and markets.”
Denis Napthine MP, Premier


Better public transport

A rail network that meets our needs

The Napthine Government continues to invest in transformational rail projects across Victoria.

Melbourne Rail Link
A new underground tunnel, new and upgraded stations and a rail link to Melbourne Airport will be delivered as part of the biggest rail project ever undertaken in Victoria.
This Budget commits $830 million over four years to the Melbourne Rail Link which will transform the rail network, reducing delays, improving reliability and boosting capacity by up to 30 per cent.
Costing $8.5 billion to $11 billion, construction on the project will begin in 2016, creating 3700 new jobs at the peak of construction.
The Melbourne Rail Link will deliver:

  • New rail tunnel with twin tunnels from Southern Cross to South Yarra.
  • New underground stations at Fishermans Bend (Montague) and Domain.
  • New underground platforms at Southern Cross and South Yarra stations.
  • Train-tram interchanges at Southern Cross, Montague, Domain and South Yarra stations.
  • A rail link to Melbourne Airport.

Cranbourne-Pakenham Rail Corridor project
The $2-2.5 billion Cranbourne-Pakenham Rail Corridor project will significantly improve rail services for one in every ten Melburnians.
This project will:

  • Boost services by 30 per cent.
  • Provide 25 next generation high capacity trains.
  • Remove four congested level crossings and plan for the removal of an additional five level crossings.

Removing more level crossings
This Budget invests $685 million to remove four level crossings, supporting around 1000 jobs during the peak of construction.
The Government has now allocated planning and/or construction funding for 40 level crossing removals and grade separations.
More affordable public transport

  • Helping to ease cost of living pressures by providing free tram travel in Melbourne’s CBD and Docklands.
  • Making public transport more affordable by enabling commuters to travel in Zone 1 and Zone 2 for the price of a Zone 1 fare, saving commuters about $5 per day equating to savings of around $1200 each year.



Better road connectivity and safety


Building better roads

The Napthine Government is investing in roads across metropolitan Melbourne and regional Victoria to improve overall road safety and access and ease congestion.

This Budget will provide an additional $370 million to maintain, restore and improve our road network.
East West Link – completing the Western section
The Napthine Government will complete the East West Link to relieve chronic traffic congestion in Melbourne’s inner north and west, unlocking the western suburbs growth corridor.
The Western section, delivering the much needed alternate route to the West Gate Bridge will commence construction in late 2015 creating 3000 jobs at the peak of construction.
Tendering for the Eastern section is already underway with works expected to commence in late 2014. The construction of this section will create 3200 jobs.
CityLink-Tulla Widening
Up to $850 million will be invested in partnership with the private sector to widen the western section of CityLink.
This project will complement the Airport Rail Link with new lanes and improved operations getting people and goods from the CBD and the Port of Melbourne to the airport faster.
A minimum of one extra lane will be added to each side of the freeway as well as an additional lane for traffic heading inbound (from the Tullamarine Freeway, just north of English Street to the Bolte Bridge).
This project will create around 700 jobs during the peak of construction.
Princes Highway West duplication project
The Napthine Government will provide $362 million to duplicate 37 kilometres of highway between Winchelsea and Colac.
This will support around 250 new jobs during the peak of construction.

“We are investing in state-shaping road infrastructure, easing congestion, benefiting regional and urban commuters, securing our freight transport network
and creating new jobs.”
Denis Napthine MP, Premier


Boosting skills, education and training

Skills to secure Victoria’s future

The Napthine Government is reskilling workers into new and growing industry sectors, making a major investment in schools and furthering support for students with disabilities.

Investing in our schools
The schools package supports Victorian students, investing:

  • $564 million for schools to raise performance with targeted funding for disadvantaged students.
  • $273 million for more resources for students with disabilities.
  • $691 million to help schools cater for more students as a result of population growth.
  • $32 million for bus services to transport students with disabilities.

In addition, the Napthine Government will provide $500 million to build and upgrade government schools, including:

  • 12 new schools, three schools of which will be built in regional Victoria; and
  • $271 million for school upgrades and improvements.

Investing in the skills that lead to jobs
The Budget provides $1.2 billion per year for vocational education and training.
Investing in vocational education and training will boost Victoria’s workforce capability and assist workers to transition into new and growing industries.
Workers seeking to upgrade their skills will have more opportunities to secure jobs in the growth sectors of the Victorian economy.
The Napthine Government is also investing $30 million in training for automotive and supply chain workers.

“We are investing an additional $5.4 billion for schools to deliver high quality schools and education.”
Denis Napthine MP, Premier


Improving health services

New hospitals and better health

To support a growing population and increased demand for services the Napthine Government has a clear plan to provide quality health care for all Victorians.

Building better hospitals
The Budget delivers an additional $1.4 billion over four years to support hospitals. Total health funding will be a record $14.9 billion in 2014-15.
This investment includes an additional $156 million over four years to better support Victorians with a mental illness or drug and alcohol addiction.
Key hospital funding initiatives include:

  • $73 million on the Latrobe Regional Hospital redevelopment.
  • $28 million will be provided to develop the new Barwon Health-North Facility.
  • $14 million for the Boort Hospital redevelopment, which will include a new 32 bed facility.
  • The Napthine Government will provide $190 million to boost elective surgery over four years.

Boosting funding for disability care

This Budget invests $200 million over four years to support Victorians with a serious disability to make choices about the services that best suit their needs.
Total investment in disability services is now $300 million more than when the Coalition came to government.
The Napthine Government has also made a significant contribution to establish the National Disability Insurance Scheme, with a trail of the NDIS in the Barwon area and the national headquarters located in Geelong.

“The Napthine Government is investing in quality services to meet the demands of a growing population, including support for growing regional communities.”

Denis Napthine MP, Premier


In the past four years the Coalition Government has invested billions of dollars in health infrastructure programs that includes:

  • $1b Victorian Comprehensive Cancer Centre.
  • $630m Bendigo Hospital.
  • $448m for the Box Hill Hospital redevelopment.
  • $250m for the Monash Children’s Hospital.
  • $55m for the Peter Doherty Institute.
  • $165m for the redevelopment of the Royal Victorian Eye and Ear Hospital.
  • $81m for the Frankston Hospital in-patient expansion, emergency department and sub-acute beds.
  • $98m for the Geelong Hospital major upgrade.
  • $9m for the Austin Short Stay Unit expansion.



Making our communities safer

Protecting our communities

Building a safer Victoria remains a key priority for the Napthine Government.

Expanding our prison capacity ensures that if you do the crime, you do the time.

More police and better police stations

The Napthine Government is completing the largest recruitment in Victoria Police’s history with 1,700 additional police officers and 940 Protective Service Officers.

Better resourcing of police

$13 million is also allocated for taser equipment for 24 hour police units in regional Victoria, and $12 million to relocate the Victoria Police Mounted Branch from South Melbourne to redeveloped stables in Attwood.

Increasing prison capacity

The Napthine Government will invest $447 million to expand Victoria’s prison capacity, supporting the tougher parole laws we have introduced.
The Budget increases prison capacity by 871 beds and provides new units, relocatable units and infrastructure upgrades across the prison system, including at Dame Phyllis Frost Centre, Beechworth Correctional Centre and Langi Kal Kal Prison.
The ongoing commitment to invest in expanding our prison capacity will employ an additional 110 prison jobs across Victoria.
Supporting fire services
Over the last four years, the Napthine Government has invested more than $3.1 billion in Victoria’s fire services.
This Budget continues that investment with $783 million total funding. This includes:

  • $457 million for the Country Fire Authority
  • $326 million for the Metropolitan Fire Brigade
  • Further investment in the CFA, with 78 new vehicles for brigades across Victoria

The Napthine Government will maintain its tough stance on criminal behaviour and we will continue to look at new ways to improve community safety. We make no apologies for building new prisons or cracking down on organised crime and gang activity. Victorians deserve nothing less than to feel safe and secure at home or in their community.

“We understand how important law and order is to all Victorians and will continue to invest in initiatives that make our communities safer.”
Denis Napthine MP, Premier




Supporting our regions

The Napthine Government is committed to improving services and infrastructure in rural and regional Victoria.

It is essential that we use this funding to enable regional Victoria to improve services, facilities and infrastructure, so that regional communities are best placed to accommodate future population growth.

Investing in roads and rail

  • Regional Rail Link – $4.1 billion to build dedicated regional tracks from West Werribee to Southern Cross Station, removing major bottlenecks in Victoria’s rail network.
  • Cranbourne-Pakenham Rail Corridor Project – This $2 – $2.5 billion project will deliver benefits for V/Line Gippsland commuters for a more reliable journey through metropolitan areas.
  • Murray Basin Rail Project – $180-$220 million to upgrade and standardise country rail freight lines in Western Victoria.
  • More than $730 million in total to maintain restore and improve Victoria’s regional road network.
  • Great Ocean Road Upgrade – $50 million to enhance the roads and bridges from Torquay to Allensford.
  • Princes Highway West duplication – $362 million to duplicate
  • 37 kilometres between Winchelsea and Colac.
  • $86 million to fix the interchange on the Calder Hwy at Ravenswood.

Upgrading Schools and hospitals

  • Latrobe Regional Hospital – $73 million redevelopment.
  • Barwon Health – North facility – $28 million to provide an urgent
  • care centre and co-location of GP services.
  • Boort Hospital – $14 million for redevelopment, including a new
  • 32 bed facility.
  • New Regional schools – $210 million statewide to build new schools. including North Geelong Special Developmental School and Torquay North P-6 and relocating the existing Bannockburn Primary School. 
  • Ballarat High School – $7.8 million upgrade.
  • Eaglehawk Primary School – $1.6 million upgrade.
  • Yarrawonga College – $7.6 million upgrade.
  • Wodonga West Primary School – $3.8 million upgrade.

Improving Community Safety

  • Echuca Police Station – $14 million replacement
  • $8 million for a new police station and new emergency services precinct at Ballarat West.
  • $73 million for the Shepparton courts precinct development.
  • $29 million for 78 vehicles for CFA brigades across Victoria.
  • $13 million for Tasers for all 24-hour regional police stations.

Community Services

  • $30 million for a Ballarat West Employment Zone.
  • Bendigo Aquatic Centre – $15 million contribution for a new pool facility.
  • National Disability Insurance Scheme trail in Barwon area, and NDIS national headquarters in Geelong.
  • $24 million for Bushfire and Hazelwood Mine Fire Recovery Package.
  • $9 million to provide support for regional councils to assess
  • infrastructure demand, develop business cases and manage projects.


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