Helping with the cost of living

At a glance

We provided instant relief with $155 million to make public transport free for everyone in April and May, taking the pressure off fuel demand and prices at the pump.

Together with the Commonwealth and other states and territories, we’re delivering a 3-month 61% reduction in the fuel excise – down 32 cents per litre.

And we’re making sure Victorians can find the cheapest fuel by introducing a daily cap on maximum fuel prices and setting up mandatory reporting on fuel prices to Servo Saver.

These steps provide help right away. And we’re not stopping there.

With this Budget we’re providing further cost of living help with $120 million to support families with kids.

Help with cost of living – cheaper transport for Victorians

To combat pressure at the pump for Victorian motorists, we’re providing rebates on rego payments for light vehicles at a cost of $759 million. That’s a 20% rebate of up to $186 for people with one car and $372 for people with 2. All Victorians that have registered and paid their light vehicle registration between July 2025 and June 2026 will be eligible for the rebate for up to 2 vehicles.

This Budget also invests $278 million to halve the price of public transport until 1 January 2027. This includes trams, trains and bus services across the state.

This is on top of free public transport for people aged under 18 on all Victorian public transport which kicked in on 1 January 2026.

Making it easier to find the cheapest fuel

Fuel prices are rising and it’s putting families under pressure.

More than 380,000 Victorians have used Servo Saver on the Service Victoria app since it launched in October, helping them find the cheapest price on fuel. And it’s estimated that Victorians using it are saving up to $333 a year at the pump.

The daily fuel price cap is now a legal requirement. Our anti-price gouging laws mean that fuel retailers must set a daily cap on fuel prices and publish it in advance, so you can find the best deal tonight and know the price won’t jump tomorrow.

$5 million is provided for the Fair Fuel Plan, monitoring fuel prices, and for maintaining and improving the Servo Saver feature on the Service Victoria app. This free app lets consumers compare fuel prices from more than 1,500 registered fuel retailers – and save money at the pump.

Helping families with kids

Every parent wants the best for their kids, but the rising cost of living is putting pressure on household budgets.

That’s why we’ve invested in Free Kinder for 3 and 4-year-olds, free public transport for all under 18s and help for families with school costs. We’ve made Victorian government school uniforms cheaper by banning unnecessary logos and removed the need for parents to provide digital devices for kids at primary school. This Budget will continue to support families with the cost of raising kids, including:

• $28 million for the Affordable School Uniforms Program, saving families $93 on average on uniform costs per application.
• $24 million for outside-of-school-hours care for young Victorians with disability.
• $16 million to continue and expand the Glasses for Kids program to more classrooms, delivering free vision screening and glasses for kids who need them. Since it was introduced, Glasses for Kids has delivered more than 68,000 vision screenings and 13,700 pairs of glasses – saving families money and time on appointments
• $15 million for free admission for under 16s to Melbourne Zoo, Healesville Sanctuary, Kyabram Fauna Park and Werribee Open Range Zoo on weekends, public holidays and during school holidays.
• $14 million for School Breakfast Clubs to provide a free, healthy breakfast for those in need.
• $11 million for approximately 55,000 more Get Active Kids Vouchers to help eligible families cover the cost of sports enrolment and any included equipment, enabling more kids to play the sport they love.
• $7.4 million for Kinder Kits, which contain free books and educational toys, to help 3-year-olds starting kinder to learn at home through play and reading.

Helping Victorians who need it most

While cost of living pressures affect everyone, some Victorians are doing it really tough.

This Government delivers targeted support for those who need the most help in tough times – including seniors, Victorians living with disability, and households on the lowest incomes.

We’re continuing to deliver concessions for energy, rates, water and sewerage bills, with around $566 million in concessions to be provided in 2026-27, saving eligible households an average of around $629. This can include a 17.5% reduction on electricity and gas bills, a 50% discount on council rates (up to a yearly maximum of $266) and a 50% discount on water and sewerage charges (up to a yearly maximum of $372).

Rising costs as a result of the war in the Middle East are putting additional pressure on household budgets. That’s why we’re investing:

• $2.7 million to expand financial counselling services, helping families navigate periods of financial stress.
• $1.1 million towards the Energy Assistance Program, which has already helped more than 15,000 households save almost $3 million on their energy bills through access to bill relief, applying missing concessions and helping consumers get the best deal for their electricity.

This Budget provides $45 million for communities in Victoria who need it most, including:

• $15 million to boost allowances for kinship, foster and permanent carers, to keep pace with the cost of living.
• $11 million to strengthen food security across Victoria, with grants for community organisations to deliver food relief and make sure they can get it to those who need it most.
• $5 million to ensure more Victorians with disability can continue to access aids and equipment they need.
• $150,000 to strengthen the Country Women’s Association of Victoria’s capacity to deliver aid and financial relief for women,children and families in need.
  

This Budget also continues to invest in breaking the cycle of homelessness, with:

• $26 million for additional emergency accommodation and 9 new outreach teams to expand support for rough sleepers and help connect them to the help they need.
• $15 million to provide stable, long-term housing with flexible wraparound supports for people experiencing homelessness, across 5 supportive housing sites in Victoria.
• $6.1 million to support vulnerable renters to maintain tenancies – helping stop them from becoming homeless.