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Victorian State Budget 2023 - Quick guide for the built environment

Announced on 23 May, the Victorian 2023-24 State Budget involves funding initiatives that may inform your business strategy. From health infrastructure to boosting TAFE facilities, we’ve done the trawling for you, highlighting items most pertinent to our industry. 

Education

A $2.1 billion commitment to education will deliver new schools and upgrade existing. Key spends include $450 million to upgrade Catholic Schools and low-fee independent schools, with 70% of that figure allocated to Catholic schools.

With $573 million from this budget, nine new schools will open in high-growth areas including Fishermans Bend, Point Cook, Pakenham, Clyde North and Wollert. Four schools will be expanded, accommodating growth, to the tune of $89 million, including Coburg High, Huntly Primary, and Saltwater College in Point Cook. A $26 million New Schools Planning Fund will provide two new secondary colleges at Armstrong Creek West and Mount Duneed.

A Planned Maintenance Program of $331 million will fund refurbishments of other existing schools, while $182 million will be dedicated to relocatable buildings to conveniently expand learning spaces. 

‘High-fee’, or the top 15% of non-government, private schools will no longer be exempt from payroll tax, a measure contributing to the COVID Debt Repayment Plan. This may decrease spending abilities of these schools.

Contextually, these budget allocations respond to cost increases in the industry that has seen current government education projects over budget beyond $200M.

Education accessibility and inclusivity

A $235 million package, via the Outside School Hours Care Program, will provide learning opportunities for students living with disabilities. This involves development of 30 new specialist schools, offering therapy pools, speech pathology and occupational therapy services. An additional $32 million will expand the Students with Disabilities Transport Program, while $10 million will facilitate accessibility improvements, and $10 million will develop an Inclusive Schools Fund to meet social needs. 

The budget includes $6 million to boost language provisions and establish three new schools offering Punjabi and Hindi language subjects.

These inclusivity commitments may present opportunities for those equipped in delivering specialised learning environments.

Bolstering TAFE environments

Significant focus is given to increasing TAFE capacity, including a $170 million investment to upgrade campuses via the Building Better TAFE Fund. Initial developments include Stage 2 Asia Pacific Renewable Energy Training Centre at Federation TAFE, a Clean Energy Centre at TAFE Gippspland’s Morwell campus, a Building Innovation and Design Centre at South West TAFE. Other locations for upgrade include a construction skills facility in Melton, a Sunbury Campus for Bendigo Kangan Institute, a Disability Services Hub and redevelopment of a Student hub at Gordon TAFE Geelong, and a Community Health and Learning Hub at Bendigo TAFE Castlemaine.

With the government adding 70 courses to the Free TAFE list and expanded eligibility, there’s evidently a strong objective to increase student numbers, indicating sector growth.

Additionally, as part of a suite of initiatives designed to support the state government's aim to achieve its 95% renewable energy goal by 2035, $7.5 million has been dedicated to introducing clean energy as a VCE Vocational major from 2024. This may indicate ongoing demand for dedicated TAFE learning facilities as workers from other energy sources transition to renewable. 

Early learning environments

$1.7 billion has been allocated to Best Start, Best Life reforms and Three-Year-Old Kinder and Free Kinder initiatives. This includes provision for 100 kindergartens and 35 new Early Learning Centres. 

Details on schools up for future works can be found on page 39 of the overview.

Sources: Victorian 2023-23 Budget Overview, The Age: Is your school getting a facelift?, VBSA Big Budget investment in school and kindergarten buildings

Health

As the pandemic continues, the budget dedicates $4.9 billion to health services, support for healthcare workers and hospital upgrades, with $162 dedicated to seniors living across three new facilities at Cohuna, Maffra and Numurkah. 

Hospital Infrastructure Delivery Fund

The government’s Hospital Infrastructure Delivery Fund includes an initial investment of $320 million for major works at seven hospitals, including a new hospital and aged care facility in West Gippsland, improved operating theatres and intensive care units at Monash Medical Centre, a new emergency department and intensive care unit and outpatient clinic at Dandenong Hospital. 

Women’s Health

Twenty new women’s clinics and a dedicated Aboriginal-led women’s clinic will be developed with $58 million to help overcome cultural, geographical and cost barriers. 

Mental Health

Responding to the Royal Commission's findings, $776 million is committed to bed-based services, AOD services, and development of a new Mental Health and Wellbeing Act. Stage 3 works to expand Thomas Embling Hospital will receive $52 million of funding through the Mental Health Capital Fund. Investment of $157 million will expand beds at Melbourne Health, Alfred Health and statewide, while $91 million will prompt development of 20 Wellbeing Local Facilities. Additionally, a dedicated eating disorder treatment centre will be established in Melbourne. 

The government's health commitments indicate a demand for specialised health sector designers and developers. 

Source: Victorian 2023-23 Budget Overview

Community

Continuing the Local Sports Infrastructure Fund and the Country Football and Netball Program, $201 million will be directed towards sports and recreation facilities including Benalla Indoor Recreation Centre. Additionally, the Multicultural Infrastructure Fund, with $40 million from this budget, will deliver upgraded multicultural and multifaith facilities. 

Other commitments include $34 million towards emergency services upgrades, and $23 million towards the Major Events Fund, which may provide opportunities for developers of events facilities. Approximately $20 million will see the upgrade of parks, open spaces and dog parks in over 30 locations.

Sources: Victorian 2023-23 Budget Overview, The Urban Developer: Mixed Fortunes for Property in Pallas’ Ninth Victorian Budget

Housing

The state government continues to roll out the $5.3 billion Big Housing Build, to deliver over 12,000 new homes for Victorians, including a target of $1.25 billion to be spent across regional areas.

Sources: More homes for Victorians

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