The Victorian Government has committed more than $5.5 billion to education in its 2026–27 State Budget, outlining major investments across early childhood, schools and vocational education, while prompting mixed reactions from across the sector.
Deputy Premier and Minister for Education Mr Ben Carroll said the investment would expand access to education and improve outcomes for families and students across the state.
“Every Victorian child deserves a great education – and this Budget delivers it.”
Early childhood education is a central focus of the Budget, with significant funding to expand free kinder programs and continue the rollout of government-operated early learning centres. Nearly $500 million has been allocated to support new Early Learning Victoria centres, alongside additional funding to improve early learning facilities.
Minister for Children Ms Lizzie Blandthorn said the measures would deliver both educational and cost-of-living benefits for families.
“More families will get access to free kinder – saving them money and giving their kids the best start,” she said.
The Budget also includes substantial investment in school infrastructure, with more than $419 million allocated to continue the pipeline of new schools, in addition to funding for planning future campuses.
Further spending includes $522.8 million for maintenance and $511.5 million for upgrades and capacity expansion across government schools. These investments are aimed at accommodating enrolment growth and improving learning environments.
Targeted funding has also been directed towards equity and inclusion, including $61.9 million for students learning English as an additional language and more than $2.1 billion to continue disability inclusion reforms.
Additional measures include funding for programs addressing discrimination and supporting student wellbeing, as well as place-based initiatives designed to strengthen links between schools, families and communities.
Workforce investment and skills pathways expanded
The Budget includes a suite of measures to support the education workforce and strengthen pathways from school into further education and employment.
Funding has been allocated to the Victorian Academy of Teaching and Leadership to support professional development for teachers and school leaders, alongside funding for pre-service teacher placements in regional and specialist schools.
Additional investment aims to reduce teacher workload and improve classroom practice, including support for literacy initiatives such as phonics checks.
Vocational education and training is another key area, with more than $459 million dedicated to strengthening skills provision and supporting students into employment.
Minister for Skills and TAFE Mr Colin Brooks said the government would continue to build on existing programs in the sector.
“Free TAFE has already saved Victorians millions, we’re protecting it – and building on it,” he said.
The Budget also includes funding for new TAFE Centres of Excellence, student support services and improved training infrastructure, alongside measures to strengthen apprenticeship pathways and regulatory oversight.
Sector leaders divided over funding outcomes
Responses to the Budget from education stakeholders highlight ongoing divisions around funding, equity and system priorities.
Independent Schools Victoria (ISV) welcomed changes to payroll tax arrangements affecting the sector, describing them as a result of constructive engagement with government. Chief executive Ms Rachel Holthouse said the measures were a positive step.
“We appreciate the constructive engagement with the Minister in the lead up to the Budget. These measures are a positive step and demonstrate how policy can be strengthened through open and collaborative discussion,” she said.
However, Ms Holthouse said cost pressures remained a significant issue for independent schools and families.
“The cost pressures on Independent schools remain significant. Payroll tax is adding to those pressures and, in some cases, flowing through to fees making it harder for families to choose the education they want for their children,” she said.
She also cautioned against the long-term impact of taxation settings on school choice.
“We should not be heading toward a system where families are priced out of the school of their choice because of ill-considered tax enforced on a not-for-profit sector,” Ms Holthouse said.
In contrast, the Australian Education Union (AEU) criticised the Budget, arguing it does not deliver the level of funding required for public schools and TAFEs.
AEU Victorian Branch president Mr Justin Mullaly said the announcement leaves public education lagging behind other jurisdictions.
“Victorians have every right today to ask themselves, on what grounds can the state government claim Victoria is the ‘education state’,” he said.
“Our teachers, principals, education support staff, and our students and their families cannot afford to wait any longer for full and fair funding for public schools.”
Mr Mullaly said Victoria remained “at the bottom of the pack” in terms of public school funding and argued there was insufficient investment to close the gap.
He also raised concerns about the TAFE sector, stating: “It is completely unacceptable that our TAFEs are not funded to cover the cost of delivering courses.”
The union argued that education staff were continuing to compensate for funding shortfalls.
“It is Victoria’s public school and TAFE workforces who step into the breach and make up the shortfall through hours of unpaid work every week to ensure Victorian public school and TAFE students have access to a quality education,” Mr Mullaly said.
