VIC State Budget 2017-18 | Health and Education

By Craig Whatman - May 2, 2017

Following on from strong investment in health and education in last year’s Budget, the government has again focused its attention on these areas, investing heavily in infrastructure projects to improve the welfare and prospects of all Victorians.


The Andrews Government is responding to the continued growth in Victoria’s population and its associated strain on our health system. This year’s Budget includes a $2.9bn investment in the health sector, with a major focus on the development and upgrade of existing Victorian hospitals – including the Northern, Austin and Royal Melbourne Hospitals. The government has also announced a redevelopment of the existing Footscray Hospital to better service the rapidly growing population in Melbourne’s west.

A record $406m investment in mental health services across Victoria has also been announced, building on the significant investment for mental health in last year’s Budget.


Continuing in its efforts to make Victoria the Education State, the government has announced an investment of $1.3bn in education over the next four years.

Again, the construction industry is set to benefit indirectly, with a further $685m invested in the construction of new schools and upgrades to existing schools. With $1.8bn already invested in schools over the last two Budgets, this year’s investment will bring the total investment in Victorian school infrastructure to more than $2.5bn.

Melbourne’s growth areas will also benefit, with new schools planned for the cities of Ballarat, Cardinia, Casey, Hume, Melton, Mitchell, Whittlesea and Wyndham. Over $269m has been allocated to construct, plan and buy land for new schools in these areas.

Further education initiatives include an $85m dollar project to remove asbestos in Victorian schools, and an $84m investment in IT upgrades in schools across the state. 

What it means for you

While the announcements should directly benefit those in the health and education sectors, we also expect that clients in the building and construction industries will be indirect beneficiaries of the increased education spend.

Residential developers on the urban fringe of Melbourne should benefit through increased sales, as a result of the development of new schools in areas such as Casey, Hume and Melton.

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