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Councils warn budget falls short on local investment

by Kody Cook
May 6, 2026
in Community, Council, Funding, Investment, News, Planning, Road, Transport, Urban Development, VIC
Reading Time: 2 mins read
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Image:  Jirapong/stock.adobe.com

Image: Jirapong/stock.adobe.com

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Victoria’s peak local government body has warned the State Budget missed an opportunity to strengthen investment in community infrastructure and services.

The Municipal Association of Victoria (MAV) said the 2026-27 Victorian Budget did not go far enough to support councils in delivering key services and enabling infrastructure for growing communities.

In the lead-up to the next state election, the MAV said it would continue to advocate for sustained investment in infrastructure to support housing delivery, community wellbeing and the long-term financial sustainability of the local government sector.

While the MAV welcomed increased spending on state-managed roads, it said the funding would not be enough to significantly improve safety and productivity across the arterial network.

The organisation also noted the budget included funding for several local government-related programs, including child safeguarding, school crossing supervisors, tobacco enforcement and multicultural seniors support.

However, it said the budget left unresolved questions around major policy areas and did not address ongoing financial pressures facing councils, particularly in delivering services such as maternal and child health and kindergarten infrastructure.

The MAV also raised concerns about planning reform, questioning how councils would meet expectations for faster approvals without sufficient investment in systems and technology.

The organisation said it would continue to assess the budget in detail to better understand its implications for councils and the communities they serve.

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