The Victorian Government has handed down its 2025–26 Budget, and while it’s not a windfall for construction, it does bring some much-needed stability.

This is the first operating surplus since the pandemic, and with ongoing surpluses forecast, it signals a shift from reactive spending to a more disciplined, longer-term approach. For businesses across construction, civil infrastructure and housing, that means clearer forward planning, steadier pipelines and more consistent hiring.

Here’s a breakdown of the key takeaways for the Built Environment:

Maintaining the momentum in Construction & Civil:

• $17.9 billion per year in infrastructure investment has been committed across the forward estimates — not a dramatic uplift, but a strong continuation of previous levels.
• $976 million will go toward pothole repairs, road resurfacing, bridge maintenance and roadside upgrades — practical works that support safety and jobs across metro and regional areas.
• A further $1.2 billion Road Blitz will ease congestion and improve connectivity in high-growth corridors like Donnybrook, Carrum and Altona Meadows.
• These projects help sustain demand for supervisors, engineers, plant operators, project managers, and a wide range of trades.

Social infrastructure still a standout:

• $634.3 million allocated to build or expand nine hospitals across Victoria.
• An additional $9.3 billion will continue the redevelopment of major facilities including Footscray, Frankston and Maryborough hospitals.
• These long-term health projects are key drivers of construction and design activity — supporting jobs across commercial building, project delivery, and engineering.

Housing: planning-focused progress

• While new residential builds remain under pressure due to market conditions, the government is aiming to unlock supply by extending stamp duty concessions and fast-tracking planning approvals.
• The Suburban Rail Loop, positioned as Australia’s largest housing project, is expected to enable 70,000 new homes around key transport, education and healthcare hubs — a long-term win for urban growth and connectivity.

A step forward, not a giant leap

This isn’t a game-changing budget for the construction industry — but it is a return to stability. There’s no headline mega-project, but there is a clear commitment to delivering infrastructure, supporting essential services and keeping the wheels turning.

As Treasurer Jaclyn Symes put it:

“We can service that debt while delivering the infrastructure and services that Victorians need... From here, net debt will continue to fall as a share of the economy, and we will see continued surpluses in the years to come.”

What does our Director Dan think?

"It’s not a groundbreaking budget but it brings some breathing room. Continued investment in transport and health is welcome, though I think many in the industry are tired of recycled promises, we’ve been here before.

Housing remains a concern, and while the Suburban Rail Loop is being positioned as the big enabler, spiralling costs make it hard to see a clear return, especially in the short term.

Actioning these plans will be a challenge while labour shortages continue to put pressure on timelines and capacity.

What we need now is real delivery, not more announcements. We’ll be watching closely to see how fast this turns into boots on the ground."

At Fetch Recruitment, we partner with the people delivering these projects, and we know how much certainty matters. This Budget gives the industry something solid to work with.