Victorian budget delivers $3.9b boost for health and aged care

Aged care services are among the winners in the Victorian Budget 2026/27, with new funding aimed at improving safety, reducing hospital transfers and strengthening in‑home and residential care support.

Treasurer Jaclyn Symes said the budget “acknowledges the real challenges Victorians are facing” as families continue to grapple with ever-rising costs fueled by global conflict and national inflationary pressures.

“Victorians that are doing it tough need affordable healthcare, great education for their kids and safe communities to live and work in,” she said.

The Allan Government has committed $35.7 million to bolster Victoria’s public aged care system, alongside a further $17 million to continue the Residential in Reach program, which brings hospital‑level care directly into aged care facilities. The program is designed to reduce unnecessary ambulance callouts and emergency department presentations by treating residents where they live.

A further $5.1 million over four years will continue the Guardianship in Hospitals program, helping older patients without decision‑making support to be discharged safely and promptly.

“We’re continuing to support safer, easier and more affordable aged care for older Victorians – so they can age with dignity, close to their families and communities, while easing pressure on our hospitals,” Minister for Mental Health and Ageing Ingrid Stitt said.

More care closer to home

The budget expands several initiatives that allow older Victorians to receive care without entering hospital. More than $130 million will continue the Better at Home program, which provides rehabilitation, post‑surgical care and other clinical services in people’s homes.

The Virtual Hospital pilot, which has already treated around 400 patients, will be extended with an additional $3.1 million, improving access for regional communities and freeing up hospital beds.

Funding will also continue for Urgent Care Clinics and free community mental health services, ensuring older people can access support without GP referrals or out‑of‑pocket costs.

To ease cost‑of‑living pressures for people with long‑term disability or chronic conditions, the government will invest $5 million in the Victorian Aids and Equipment Program and $22.5 million to maintain the Home and Community Care Program for Younger People.

Hospitals and emergency care

The budget also delivers significant investment across the broader health system, including $1.6 billion to ensure public hospitals can continue delivering frontline care.

Regional and metropolitan hospitals will receive upgrades, including works at Dandenong, West Gippsland and Wonthaggi, supported by a $370 million capital package. Community hospitals in Mernda, Cranbourne, Craigieburn and Pakenham will also expand services.

“We are building and upgrading hospitals so Victorians can access world-class care, no matter where they live,” Minister for Health Infrastructure Melissa Horne said.

“Our health infrastructure investments are improving hospitals right across the state with faster care and more beds.”

Emergency care received a substantial boost, with $50.7 million to improve ambulance response times and get paramedics back on the road sooner. Triple Zero call triage will be strengthened through a $9.7 million investment, while $28.6 million will help connect non‑urgent callers to more appropriate care pathways.

Mental health

Mental health services will expand through new and continued programs, including:

• an $8.4 million Mental Health Hospital in the Home program at Monash Health
• continued funding for Youth Outreach and Recovery services
• $6.5 million for suicide prevention programs, including HOPE
• targeted support for LGBTIQA+ communities and Aboriginal Victorians.

Mental Health and Wellbeing Hubs in Cowes, Warrnambool, Horsham and Ballarat will continue providing free care without GP referrals.

Workforce support

The budget is investing $91.2 million to strengthen the health workforce, including 250 new graduate nursing and midwifery positions, additional allied health student grants, and expanded training pathways in psychology and psychiatry. Funding will also support non‑government aged care providers to grow their nursing workforce.

“Our world-class health workforce is behind every bed, every appointment, and every ambulance – this budget backs them, and the extraordinary care they provide to millions of Victorians,” Minister for Health Harriet Shing said.