The 2026-27 Victorian Budget contains several critical investments and themes that may support operations and the vulnerable clients our members serve, with an emphasis on housing supply, targeted homelessness interventions, and cost-of-living relief.
Here are the most relevant announcements and themes for our sector:
Expansion of Social and Affordable Housing Supply
The budget’s flagship announcement for our sector is a structural investment in housing supply, which will heavily involve community housing providers:
- $860 million for the Social Housing Growth Fund: This investment over the next five years will support the delivery of more than 7,000 additional social housing homes over the next decade.
- Dedicated First Peoples Housing: Recognising the severe impacts of housing inequity on First Nations communities, 10% of the homes delivered through the Social Housing Growth Fund expansion (equating to $86 million) will be dedicated to First Peoples.
- Rent-To-Buy Pilot: A specific Rent-To-Buy pilot will deliver up to 30 newly constructed affordable rental dwellings for First Peoples, managed by the Aboriginal Community Controlled Organisation sector, providing a pathway to home ownership.
- Ongoing Pipeline: The budget reaffirms the continuation of the $6.3 billion Big Housing Build and the $1 billion Regional Housing Fund, which are collectively delivering 13,300 homes, including 72 transitional homes specifically for people experiencing homelessness.
- Reflecting this priority, the state’s “Housing Assistance” output funding has increased by 17.8% to $769.9 million.
Frontline Homelessness and Rough Sleeping Interventions
There is targeted funding to address acute homelessness and support rough sleepers, shifting towards a proactive, preventative model:
- $26 million for Emergency Accommodation and Outreach: This funds additional emergency accommodation and establishes nine new assertive outreach teams to proactively engage rough sleepers and connect them to housing support.
- $15 million for Supportive Housing: This will maintain operations at five supportive housing sites across Victoria operating on a “Housing First” model, providing long-term accommodation paired with flexible, wraparound supports.
- $6.1 million for Homelessness Prevention: This funding expands the Tenancy Plus program, which supports vulnerable renters (including First Peoples social housing tenants) to maintain their tenancies and avoid falling into homelessness.
Intersecting Support for Victim Survivors of Family Violence
The budget explicitly recognises that family and domestic violence is a leading cause of homelessness, overwhelmingly affecting women and children. To address this intersection:
- $74 million is allocated for family violence response activities, which includes funding for core and cluster refuges, short-term supported crisis accommodation, and emergency crisis support packages to help victim survivors transition into secure housing.
Energy Efficiency Upgrades for Community Housing
Directly benefiting our asset management and our tenants’ utility bills, the government is investing $10 million to support energy efficiency action by the community housing sector. This provides direct funding for electrification upgrades and assessments for community housing retrofits to help properties meet Minimum Energy Efficiency Standards.
Wraparound Client Supports and Cost-of-Living Relief
Recognising the acute financial stress driving housing instability, the budget funds several community support services our clients often rely on:
- $11 million to strengthen food security, providing grants to community organisations, Foodbank Victoria, and regional foodshares to deliver food relief.
- $2.7 million to expand frontline financial counselling services to address geographical gaps and help families navigate financial stress.
- $1.1 million to extend the Energy Assistance Program, which helps vulnerable households access bill relief and missing concessions.
- Broad transport relief: Low-income clients may benefit from a 20% rebate on light vehicle registration and half-price public transport across the state until 1 January 2027.
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