VCOSS initial State Budget response

A budget for tough times – with room to go further for those who need it most

5 May 2026

MEDIA RELEASE

Victoria’s social and community sector peak body, the Victorian Council of Social Service (VCOSS), has welcomed a State Budget that responds to the pressures Victorians are facing – including rising fuel costs, unaffordable rents, and the daily struggle to make ends meet – while acknowledging that it does not yet match the full scale of the challenge.

VCOSS highlighted positive measures including:

• Extended public transport fare discounts – which will ease the pressure on some commuters hit by rising fuel costs – and more buses to get people where they need to go.
• $8.5 million to strengthen food security – on top of the $2.7 million fuel crisis food relief package announced in April.
• $459.4 million investment in skills and training, including expanded Free TAFE places expected to support 15,000 additional students, three new TAFE Centres of Excellence, and more wraparound support services for students.
• An $860 million investment in social housing, which will deliver 7,000 new social homes, as well as more support for homelessness service outreach.
• Continued investment in family violence response, early childhood education, and foundational supports, as well as disability inclusion programs in schools.

VCOSS CEO Juanita Pope said: “We welcome cost-of-living measures that take the pressure off Victorians doing it tough – particularly where support is targeted towards those most in need.”

“On housing, the commitment to build 7,000 new social homes in the next decade is a welcome step towards the long-term pipeline that Victoria needs. There are more than 65,000 Victorians currently on the social housing waitlist.”

On community safety, VCOSS acknowledges the Government’s introduction of the Violence Reduction Unit (VRU), a promising health-based, early intervention approach. The importance of this cannot be understated. 

“VCOSS urges the Government to continue to invest in evidence-informed programs that can reduce harm before it occurs, and to fully fund the services that support Victorians when they need it most.”

We welcome cost-of-living measures that take the pressure off Victorians doing it tough – particularly where support is targeted towards those most in need.

When it comes to addressing the scale of community needs, and the underlying causes of long-term challenges, there is room to go further.

Ms Pope said: “Rising fuel costs and flow-on pressures are falling hardest on the people least able to absorb them, and on the community organisations responding to extra demand. Those organisations – especially in regional areas – are facing the same cost pressures as the people needing their help. Their overheads have gone up, and some staff are struggling to afford to even get to work. The sector is feeling the pressure.” 

“While this budget keeps critical frontline programs running, it still doesn’t deliver the structural investment our sector and the communities who depend on it need. What that would look like is fair, secure, long-term funding that reflects what it actually costs to do this work. You can’t ask the sector to absorb an ever-growing wave of need if funding stays relatively flat, and short-term.”

With a state election in November, VCOSS calls on all parties to prioritise what matters so that every Victorian can thrive.

Media contact: Miriam Sved, VCOSS, mobile 0418 127 153

vcoss.org.au/vicbudget

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