2025 Victorian Budget Submission

People are hurting. It’s time for a budget focused on care – and the care economy.

A note from VCOSS CEO Juanita Pope

In a time of constrained fiscal conditions and mounting social disunity, there’s one thing most of our state – indeed our country – can agree on: people are hurting.

The current cost of living is placing immense strain on Victorians. Many people are being pushed to the brink, an increasing number skipping meals just to pay the rent.
This is not a new phenomenon – it’s just more visible. Well before the cost-of-living crisis became a media talking point, 800,000 Victorians were living in poverty. The current situation is symptomatic of deep rooted social and economic inequality.

Now is the time for strong, compassionate, smart responses from government. And bold action on poverty and economic exclusion.

Governments make choices about how public funds will be spent. That’s what budgets are for. The choices that government makes – who it chooses to invest in – send a powerful message, especially to people who need support. If decisions are made that prioritise commercial interests over the wellbeing of people, this is not only socially and morally unsound, it’s economically shortsighted.

A truly prosperous economy is one that enables all citizens to thrive – that lifts them up when they are down. It’s an economy underpinned by robust, holistic foundational supports – things like housing, healthcare, good schooling, childcare, community connections and the skills to get a decent job and lead a fulfilling life.

Investing in these foundations – and in the services that provide them – is key to Victoria’s economic and social prosperity. Drip-fed, short term, siloed support will not cut it.

In 2025, Victoria needs a budget that values care and focuses on the care economy. When we invest in care and wellbeing, we unlock the potential for a more resilient, inclusive economy.

The organisations that deliver care and social supports for Australians – including health and human services, children’s early education and community development – represent the largest employing industry in the country. They offer enormous potential for economic and social returns.

As more Victorians turn to care services in hard times, Victoria should invest in the sector that has caring at its core. Investing in the care economy not only generates real jobs, but also builds a solid social foundation – both for Victorians who are hurting right now, and for future generations.

When we invest in care and wellbeing, we unlock the potential for a more resilient, inclusive economy.

Victoria’s investment in the care economy must be approached strategically. We need to ensure support for the workers who make the industry successful and sustainable. Boosted resources for workforce development, core operations and care infrastructure will ensure that the care economy remains a stable, sustainable driver of good jobs, social wellbeing and economic growth. This allows us to tackle both immediate needs and long-term challenges, like the ageing population and the escalating impacts of climate change.

It’s about priorities.

Compassionate and smart policy-making puts social equity and human wellbeing as its central tenets.

It’s time for leaders to return to the basics: alleviate poverty, provide essential services, help people and invest in care that works.

Only when we prioritise these fundamental pillars will we achieve an inclusive, sustainable economy that our society desperately needs.

Juanita Pope
VCOSS CEO