News | 20 May

Victorian State Budget Delivers Blow to Civil Construction Sector

The Civil Contractors Federation Victoria (CCF Victoria) has expressed deep concern at the sharp and sustained decline in infrastructure investment revealed in today’s Victorian State Budget, which prioritises political optics over economic strategy.

Despite the Government’s focus on cost-of-living relief and debt stabilisation, the 2025–26 Budget signals a continued contraction in infrastructure funding, falling from $24.2 billion in 2023–24 to just $15.9 billion by 2027–28. With no major new civil projects announced and a glaring silence on flagship initiatives like the Suburban Rail Loop and North East Link, the civil construction industry is left with diminished visibility, reduced confidence, and a constrained pipeline.

CCF Victoria CEO Lisa Kinross described the Budget as a missed opportunity to invest in Victoria’s long-term prosperity and a failure to recognise the critical role civil construction plays in driving economic growth, employment, and regional development.

“This is a Budget for voters, not builders,” Ms Kinross said.
“The continued decline in infrastructure investment sends the wrong signal to industry at a time when we should be reinforcing – not retreating from – our commitment to a resilient and future-ready Victoria.”

While CCF Victoria welcomes targeted spending in areas such as enabling infrastructure for housing ($249 million), regional roads and transport ($777 million), and skills and training programs, these measures fall short of the broader strategic investment needed to secure the state’s infrastructure future.

“We need more than maintenance packages and fragmented funding announcements,” Ms Kinross said.
“Victoria needs a bold and coordinated infrastructure strategy — one that charts a course across transport, water, energy, and land development for the decade ahead. Without it, we risk a slow erosion of capacity, capability, and skilled jobs across our sector.”

CCF Victoria will continue to advocate strongly for the civil construction industry to ensure the Government recognises its critical role in building a more connected, productive, and resilient Victoria.

Latest News