The 2026-27 Victorian State Budget, delivered this week, balances a return to a modest operating surplus with targeted “cost-of-living” relief and a multi-billion dollar commitment to regional services. For residents of Daylesford and the wider Hepburn Shire, the implications are a mix of broad household savings and continued investment in local infrastructure.

$6.7 million for Daylesford Primary School

In this Budget, 31 government schools will receive upgrades through a $294.8 million investment, including Daylesford Primary School which will receive $6.7 million. The multi-million dollar allocation is designated for “modernization and upgrades,” aimed at bringing the school’s historical and contemporary facilities into alignment with 21st-century learning standards.

Cost-of-Living Relief for Households

The centerpiece of the budget for many locals will be the immediate relief on transport costs. The government has announced a 20% rebate on light vehicle registration for the 2025-26 period, providing a welcome reprieve for regional drivers who rely heavily on their cars.

Furthermore, following the free travel period in April and May, public transport fares will remain at half-price until January 1, 2027. For those commuting to Ballarat or Melbourne via V/Line, this extension represents a significant cumulative saving over the next six months.

Health and Community Wellbeing

Healthcare remains a top priority, with a $1.6 billion injection into the statewide hospital system. Locally, the most relevant funding stream is the $75 million Regional Health Infrastructure Fund. While specific allocations for Daylesford Health (Central Highlands Rural Health) are often announced in subsequent grant rounds, this fund is the primary vehicle for the facility upgrades and equipment replacements vital to our local campus.

The budget also provides $1.1 million for the Health Loddon Campaspe program, which includes Daylesford. This funding is specifically earmarked for preventing chronic disease by promoting healthy eating and active living—initiatives that align closely with our community’s focus on local food systems and outdoor recreation.

Investing in our “Future Hepburn”

The Hepburn Shire Council has been vocal in its advocacy leading up to this budget, emphasizing the need for sustainable growth and improved community facilities. A key local win is the continued support for the Victoria Park Soccer Lighting Redevelopment, which will see the installation of 100-lux LED lighting. This project is a cornerstone of the council’s push to improve local sports infrastructure and increase evening participation for regional youth.

Additional regional highlights include:

  • Road Maintenance: A record $1 billion has been allocated for road maintenance and upgrades across the state.Given the ongoing challenges with potholes and road surfaces following recent wet seasons, this surge in funding is critical for our local connecting roads.
  • Fire Preparedness: Following the January bushfires, $217 million will be invested in firefighting capability, including an expanded aviation fleet and more “eyes-in-the-sky” technology—essential for the heavily forested regions surrounding Daylesford.
  • Agriculture: Farmers in the district will benefit from a $62 million recovery package for those impacted by the 2026 fires, alongside ongoing funding for the Rural Financial Counselling Service.

The Road Ahead

While the budget delivers on immediate relief, some regional leaders, including those in the Loddon Mallee region, have noted that long-term investment in key worker housing remains a gap. As Hepburn Shire continues to navigate its “Future Hepburn” strategic planning, the challenge will be ensuring these statewide funds translate into tangible improvements for our local streets and services.

For Daylesford residents, this budget offers a “steady as she goes” approach—protecting essential services while providing a much-needed buffer against the rising costs of country life.