2024-25 State Budget Submission – Essential investment to ensure the regions are not left behind

BACKGROUND

Regional Cities Victoria (RCV) is the peak body for regional Victoria, comprising of the 10 largest
cities of Ballarat, Bendigo, Geelong, Horsham, Latrobe, Mildura, Shepparton, Wangaratta,
Warrnambool, and Wodonga. Collectively, these cities are home to more than 800,000 Victorians,
and contribute to approximately 10 per cent of Victoria’s economy.

RCV is committed to strengthening our regional economies, encouraging sustainable growth, and
maximising regional liveability. We want to help build a prosperous regional Victoria through
investment in infrastructure and services that facilitate economic and social development.

Regional Victoria needs considered investment to underpin long-term economic prosperity and
improve liveability in the regions. Challenges such as a lack of housing supply and workforce
shortages need to be addressed in the short term to support regional Victoria’s growth.

While we acknowledge the Victorian Government’s $2 billion Regional Investment Package,
announced upon the cancelation of the 2026 Commonwealth Games, its focus on social housing and
sporting infrastructure does not meet the breadth of local infrastructure needs across the regions.

RCV will continue to work with and advocate to the Victorian Government to ensure regional
Victorians are not left behind – showcasing everything our regions have to offer and capitalising on
people’s interest to live, work, and visit our cities.

REGIONAL INFRASTRUCTURE FUND

Local infrastructure projects are a vital part of any regional community. They not only improve the
liveability of regional cities and towns but also contribute to the local economy and create local jobs.

RCV was extremely disappointed by the Victorian Government’s decision to discontinue the Regional
Jobs and Infrastructure Fund (RJIF) as part of the 2023-24 Budget. For almost two decades, regional
Councils and businesses have had access to more than $100 million each year through RJIF. Councils
have previously funded vital projects such as The Ballarat Community Hub, a new warehouse for
Shepparton Foodshare, and town centre revitalisations in several regional cities through RJIF.

Without this funding stream there is no Victorian Government support available for local civic
infrastructure projects in our growing regional cities, at a time when it is needed most. Councils are
already facing budget constraints, having to operate in a tight fiscal environment and grapple with
escalating costs and supply issues. Due to a lack of government support many local projects have
been, or will be, put on hold.

In addition to this, a lack of Victorian Government grants makes accessing and leveraging the
available Commonwealth funding for quality projects near impossible, due to long-standing cocontribution requirements. Regional Victorians will continue to miss out on their fair share of
Commonwealth funding.

RCV is calling on the Victorian Government to provide certainty for the regions by reinstating the
Regional Infrastructure Fund, providing a $300 million commitment over 4 years. It is proposed the
fund is set-up as it has been in the past, as a competitive program with grants considered between
$20,000 and $3 million.

HOUSING AND PLANNING

A shortage of housing is the most critical issue currently facing regional Victoria. RCV welcomes the
Victorian Government’s Housing Statement which seeks to make it quicker and easier for people to
build new homes. It is imperative that local government is engaged, and the voices of local
communities continue to be respected.

Improvements in regional planning matters can have a substantial and positive impact on the
delivery of infrastructure and housing projects and lead to better outcomes.

RCV acknowledges the need to ensure further land supply is unlocked, and local government must
play its role in this. However, a lack of enabling or trunk infrastructure, particularly in greenfield
‘pioneer developments’ on the outskirts of regional cities, is ultimately deterring the development of
local industry and private investment in the regions, posing an immediate challenge.

The Housing Statement commits to providing quicker water connections by revising statements of
expectations to water corporations to “strengthen the need to engage with developers and local
councils early and regularly through the permit process”. However, this does not address the need
to fund this new infrastructure nor address the inability of these costs to be recovered through
Development Contribution Plans.

RCV calls for the establishment of a $250 million Growing Regions Development Fund, to provide
enabling or trunk infrastructure in regional cities and ensure key utilities and services such as
water and sewage are delivered to unlock new housing stock. The cost of this Fund could be
partially offset using the proceeds of the Windfall Gains Tax.

Furthermore, RCV is seeking an amendment to allow Development Contribution Plans to include
water and sewage costs. Currently, only infrastructure such as roads and drainage are eligible to be
funded through Development Contribution Plans, which has proven to be limiting for our regional
cities. Expanding Development Contribution Plans to include water and sewage will speed up
delivery of these connections, address the Essential Services Commission’s concern to protect the
interests of existing customers of water corporations, and encourage further housing development.

JOBS AND SKILLS

Demand for workers in regional areas is at an alltime high.

Regional businesses and public sector organisations alike are suffering from skills and labour
shortages across a range of sectors, including: hospitals and health services, aged care, early
childhood education, food production, advanced manufacturing, statutory planners, and the
hospitality sector (seasonal workforce).

The Victorian Skills Plan for 2023 into 2024 highlights that more than 75,000 new workers are
expected in regional Victoria by 2026 – on top of the 60,000 jobs created across regional Victoria in
the past 12 months.

Attracting and retaining skilled workers is a key challenge for businesses and organisations in
regional Victoria, exacerbated by a shortage of housing and accommodation options.

To address immediate shortages, RCV calls for the establishment of a Critical Worker Retention and
Relocation Fund. It is proposed the fund provides financial incentives to attract suitably qualified
workers to fill vacancies for key roles in regional Victoria, offering annual retention payments after
the second, third, and fourth year of employment. The proposal is modelled on the Victorian
Government’s initiative that bridges the divide between the regions and the city by financially
incentivising teachers to relocate to hard-to-staff positions in country schools.

To address the higher-skill set required of Victoria’s future workforce, the Victorian Government is
collaborating with training providers and industry and has expanded Free TAFE – allowing all
Victorians tuition-free training across more than 80 courses in priority areas, even if they already
hold a separate qualification.

To support the tens of thousands of additional Free TAFE places, RCV calls for a Regional TAFE
Redevelopment and Technology Capability Program, to fund the capital projects needed to upskill
Victorians, with campuses relocated into the heart of regional city centres, additional classrooms
and teaching spaces, new equipment and better digital capability, and consolidated trade training
centres and industry hubs.

This program would also support the establishment of more Education First Youth Foyers, which
provide on-campus accommodation to support young people aged up to 24 years who want to study
at TAFE but are homeless or are at risk of experiencing homelessness.

CONCLUSION

RCV continues to provide strategic guidance to government on policy and investment decisions that
impact regional Victoria. We thank the Victorian Government for its continued support.

We urge the Government to increase its investment in key projects across regional Victoria and
provide local government with the financial support necessary to leverage additional
Commonwealth investment, to ensure sustainable growth and development for our communities.
This is specifically important given the pace of growth across regional Victoria.

We do not want to see the liveability of our regional cities falter. Regional Victorians, existing
residents and new, deserve adequate access to affordable housing, open spaces and parklands, and
cultural and community infrastructure.

Should you require further information please contact the RCV Secretariat at rcv@cprcomm.com.au.

ACKNOWLEDGEMENTS

Regional Cities Victoria proudly acknowledges Victorian Aboriginal people as the first peoples and
Traditional Owners and custodians of the land and water on which we rely. We acknowledge and
respect that Aboriginal communities are steeped in traditions and customs built on an incredibly
disciplined social and cultural order. This social and cultural order has sustained up to 50,000 years
of existence.

Regional Cities Victoria recognises the barriers in striving for gender equality and the need to
address these issues to ensure all Victorians live in a safe and equal society. We are committed to
ensuring we seek to provide equal opportunities for women with sustained, enduring, and
measurable action.

Regional Victorians deserve a share of Federal funding

Regional Cities Victoria (RCV) has called on the Albanese Government to provide a guarantee that 25 per cent of all Commonwealth infrastructure funding allocated to Victoria is spent on initiatives and projects outside Melbourne.

With 1 in 4 Victorians living in regional Victoria, the 10 largest regional cities – Ballarat, Bendigo, Geelong, Horsham, Latrobe, Mildura, Shepparton, Wangaratta, Warrnambool and Wodonga – are collectively home to more than 800,000 people.

RCV Chair, Cr Shane Sali said regional Victoria needs considered investment to underpin long-term economic prosperity and improve community infrastructure and services.

“Local infrastructure projects are a vital part of any regional community. They not only help maintain services, improve transport options, and make our regional cities and country towns better places to live – they also create jobs for locals and boost the national economy.

“Whether its upgrading municipal main roads in growing regional cities, building community hubs and libraries, new parks and recreational centres, or improving public transport, regional Victorians deserve their share of the Federal infrastructure funding allocated to Victoria.”

Cr Sali said while RCV acknowledges the Albanese Government’s $1 billion allocation for regional Australia made through the Growing Regions Program and Precincts and Partnerships Program, it feels regional Victoria is disadvantaged by these competitive schemes because Councils in regional Victoria cannot access compulsory co-contributions from the Victorian Government.

“We were gutted when funding was removed for a series of projects across regional Victoria – like the Geelong Fast Rail, stage 1 of the Shepparton Bypass, and the Hume Freeway intersection upgrade in Wodonga,” Cr Sali said.

“Regional Victorians shouldn’t be denied their share of funding from the Albanese Government simply because Victoria abolished its Regional Jobs and Infrastructure Fund.

“Our regional cities and towns are experiencing significant population growth and are desperate for jobs and investment. Without infrastructure funding, regional Victoria risks falling behind, unable to provide adequate services to current residents and future generations,” Cr Sali said.

Media contact: Emily Broadbent 0413 133 627

New Chair and Deputy Chair appointed to lead Regional Cities Victoria

A new Chair and Deputy Chair have been appointed to Regional Cities Victoria (RCV), a leadership group
comprising the Mayors and CEOs of the 10 largest cities outside Melbourne – Ballarat, Bendigo, Geelong,
Horsham, Latrobe, Mildura, Shepparton, Wangaratta, Warrnambool and Wodonga.

The new Chair of RCV will be Cr Shane Sali, Mayor of Greater Shepparton City Council, with Cr Andrea
Metcalf, Mayor of the City of Greater Bendigo, to serve as Deputy Chair.

Cr Sali grew up in Shepparton, where he is now raising his three children with wife Lirie. Outside his
Mayoral role Shane remains very connected to the operations of his family retail businesses.

Shane is deeply committed to Greater Shepparton and regional Victoria and served as Deputy Chair of RCV this year, after becoming Mayor of Greater Shepparton in June 2022.

“It is an honour to be able to lead RCV for the next 12 months. I look forward to working with the group to
strengthen our regional economies and maximise regional liveability,” Cr Sali said.

“We will continue to work with and advocate to the State and Federal Governments to ensure regional
Victorians are not left behind, maintaining our focus on ensuring the infrastructure, services and amenities needed to accommodate new families and residents.

“I would like to thank Cr Andrea Metcalf for her leadership as RCV Chair during the past 18 months. RCV is the leading voice for regional communities and Cr Metcalf has been a strong advocate for the regions. I
look forward to continuing to work with her as Deputy Chair,” Cr Sali concluded.

Following Mayoral elections, RCV has also welcomed two new Mayors to the group, Darren Howe from
Latrobe City Council and Ben Blain from Warrnambool City Council.

RCV advocates for the sustainable growth of Victoria’s regions, and for policies and programs that help
attract business investment and a diverse workforce to regional Victoria. Collectively, these cities are home to more than 800,000 Victorians.

Media contact: Emily Broadbent – 0413 133 627

Regional Cities Victoria welcomes incoming Premier Jacinta Allan and Deputy
Premier Ben Carroll

Regional Cities Victoria welcomes the appointment of the Hon. Jacinta Allan as the 49th Premier of Victoria, and incoming Deputy Premier Ben Carroll.

Regional Cities Victoria Chair Cr Andrea Metcalf said the appointment was good news for regional Victoria.

“As a regional Victorian, Ms Allan has represented the electorate of Bendigo East for 24 years and has an
outstanding understanding of the issues faced by regional communities,” Cr Metcalf said.

“We have always had a productive and responsive relationship with Ms Allan while she was Deputy Premier, and we will continue to engage with her office on regional issues in her new position as Premier.

“In particular, RCV will continue to work with the Government in relation to its Housing Statement and the
$2 Billion Regional investment package.”

Regional Cities Victoria acknowledges outgoing Premier Daniel Andrews for his commitment to regional Victoria through his government’s agenda.

“Over almost a decade, Premier Andrews implemented many policies that benefitted our regional
communities, such as investing in regional hospitals, the Regional Rail Revival, ensuring payroll tax in
regional Victoria was the lowest in the country, and creating jobs that ensured record low unemployment in the regions. The lasting effects of his government’s agenda will be felt for many years to come,” Cr Metcalf said.

Regional Cities Victoria comprises the 10 largest regional cities in Victoria – Ballarat, Bendigo, Geelong,
Horsham, Latrobe, Mildura, Shepparton, Wangaratta, Warrnambool and Wodonga.

Download the media release here.

Regional Cities Victoria welcomes more housing for the regions but warns that regional communities will have less say over major developments

Regional Cities Victoria welcomes the Victorian Government’s Housing Statement, which seeks to make it quicker and easier for people to build new homes but has warned that the State’s take-over of major housing developments worth more than $15 million must come with a commitment to listen to local communities.

Chair of Regional Cities Victoria, Cr Andrea Metcalf, said RCV welcomed the announcement of future housing stock for the regions and was particularly pleased to see a commitment to review and rewrite the Planning and Environment Act 1987, which RCV called for in its Planning Paper earlier this year.

“Regional Victoria has been growing faster than predicted over the past five years, a trend exacerbated through the pandemic, and that growth will only continue over the next 10 years,” she said.

“We knew that to accommodate that growth, an overhaul of the planning system was desperately needed as it was clearly not benefitting our regional cities, so we applaud the State Government for making it a priority.”

While additional housing is welcome in the regions, RCV cautions that the expanded Development Facilitation Program will remove councils as the decision makers for state-significant developments in regional towns worth $15 million or more, or where they deliver at least 10 per cent affordable housing.

Planning approvals for these developments for these developments will now include a fast-tracked timeframe of four months (currently 12 months).

“It is pleasing to see government’s recognition that water connections to new housing developments must happen more quickly. But it there is no detail on how this new infrastructure will be paid for – this has been the key issue delaying many housing projects in regional Victoria,” Cr Metcalf said.

The Government has committed to a $400 million package of works in Melbourne’s growth corridors for “things like toilets, shelter and lighting upgrades at bus stops and train stations, footpaths and cycling paths”. RCV calls on a similar commitment to civic infrastructure in growing regional towns and cities.

“In our submissions to government we acknowledged that the shortage of housing is an urgent issue in the regions. It is critical that land supply is unlocked and enabling infrastructure built, however this cannot come at the expense of regional residents’ ability to have a say in developments,” Cr Metcalf said.

“As the Minister for Planning becomes the decision maker for significant residential developments that include affordable housing, grassroots campaigns to influence development will have fewer avenues to have their voices heard.”

RCV also notes the establishment of a new Short Stay Levy of 7.5 per cent on short stay accommodation platforms. RCV is supportive of the Government’s decision to direct 25 per cent of funds gathered from this levy to regional Victoria. RCV will be closely analysing the flow of these funds to ensure that regional Victoria is not short-changed.

Changes to the planning approvals process and new ‘Deemed to Comply’ residential standards will benefit councils, developers, and residents by fast-tracking the approval process for new homes, and in some instances, removing the need for planning permits entirely.

Download the media release here.

Funding for regions welcomed, following Commonwealth Games cancellation

Regional Cities Victoria has welcomed the Victorian Government’s release of further detail today about
additional investments to be made across regional Victoria, following the disappointing cancellation of the 2026 Commonwealth Games.

“There is no doubt that the decision to cancel the Commonwealth Games was a shock, and very
disappointing for regional communities. We welcome the Victorian Government committing to delivering
on some of the promised legacy, directing funds into boosting housing, tourism, and sporting groups in
country communities,” RCV Chair Cr Andrea Metcalf said.

Funding redirected from the Commonwealth Games budget includes:

• A new $150 million Regional Worker Accommodation Fund, in addition to a $1 billion boost to social and affordable housing in regional cities and towns;
• $140 million to bring new events, multi-cultural festivals, and more visitors to regional Victoria, including workforce development programs, $70 million for new visitor attraction campaigns, and $60 million for tourism infrastructure such as new destination accommodation;
• $10 million to grow our food and fibre exports and encourage more people to buy Victorian;
• $35 million for new community sport infrastructure and another $25 million to support community sport programs;
• $20 million to support Aboriginal businesses, employment programs, and Aboriginal cultural tourism initiatives across regional Victoria;
• A $25 million Council Support Package, recognising the investment ratepayers have already made in planning and preparing for the Commonwealth Games; and
• A doubling of the Tiny Towns Fund to $20 million, providing grants of up to $50,000 to projects and organisations in communities with up to 5,000 people.

“While nothing can match being broadcast into billions of lounge rooms around the world, we look forward to working with the Victorian Government to attract more visitors to regional Victoria, sell more Victorian grown and made products to Australians, and support the massive population growth across our regional cities,” Cr Metcalf said.

“A lack of housing stock is keeping regional businesses from attracting the workers they need, and many locals are increasingly being priced out of the market – especially renters. These new investments in workers accommodation and social and affordable housing are very welcome,” Cr Metcalf said.

“Regional Cities Victoria has been calling for local community sporting groups in every corner of the state to see a benefit ever since the Commonwealth Games was first announced. It is fantastic to see this will come to fruition.”

But RCV says the additional investment in tiny towns does not make up for the abolition of the Regional Jobs and Infrastructure Fund in the recent State Budget. Regional cities still have no access to any funding to help build community centres, news open spaces, and provide the infrastructure needed to make regional Victoria a better place to live and work. It also puts access to Federal Government grants in
jeopardy.

“Regional Victorians had excitedly welcomed the Commonwealth Games because of the long-term value it promised for their communities. We are pleased many of these benefits will still flow. But we must see a
renewed focus on making our regional cities even better places to live and work,” Cr Metcalf said.

Regional Cities Victoria will continue to advocate to the Victorian Government to ensure funding is
delivered across all parts of the State, and in a timely manner.

Download the media release here.

Cancellation of 2026 Commonwealth Games a major loss for regional cities

Regional Cities Victoria is greatly disappointed by the Victorian Government’s decision to cancel the 2026
Commonwealth Games.

RCV Chair Cr Andrea Metcalf said the promised Commonwealth Games was an opportunity to showcase
regional Victoria to the world, better connect regional communities with each other, and gain long-term
value from tourism, job creation, and attracting skilled workers to our regional cities.

“The opportunity to host a once-in-a-lifetime event in regional Victoria has been something our cities and
regional communities embraced and welcomed since Commonwealth Games Australia and the Victorian
Government submitted the bid,” Cr Metcalf said.

“The 2026 Commonwealth Games promised flow on benefits for every corner of the state. Outside of the
hub cities, this now appears lost.”

“We look forward to seeing details of the proposed state-wide tourism package but recognise this will not
deliver the same benefits as broadcasting the best of regional Victoria into billions of lounge rooms around the world.”

Cr Metcalf said RCV understood the fiscal reasons behind the Victorian Government’s decision today, but
says the need for long-term investment in the still exists.

“The Victorian Government’s announcement of a $1 billion package for social and affordable housing in the regions is much needed. The shortage of affordable housing is an urgent issue across all our cities and is impacting our availability to attract and retain skilled workers,” Cr Metcalf said.

“Regional Cities Victoria is keen to work with the Victorian Government to ensure the new $1 billion
package is delivered to areas most in need and adds to the Big Housing Build.”

RCV recently launched its Commonwealth Games legacy document. Among the top priorities highlighted is the need to invest in community infrastructure; repairing an old legacy and creating a new one.

“We are pleased that the infrastructure legacy across Ballarat, Bendigo, Geelong, the Latrobe Valley and
Shepparton will still be delivered. But we reiterate our call for repairs and upgrades to sporting facilities in
other regions,” Cr Metcalf said.

Today’s announcement comes on top of the Victorian Government’s decision to axe the Regional Jobs and Infrastructure Fund in the 2023-24 State Budget, which for over two decades was used to create jobs, help businesses relocate to regional cities, build community centres, and make regional Victoria a better place to live and work.

“Without this funding, Councils no longer have the same access to funding co-contributions from the
Federal Government.”

“This is a disappointing day for the 1.5 million people – a quarter of all Victorians – who call regional Victoria home and had excitedly welcomed the Commonwealth Games, encouraged by the long term value it promised for their communities,” Cr Metcalf said.

The full media release is available to download here.

‘The Winning Formula for Regional Victoria’ – how the 2026 Commonwealth Games can benefit all of regional Victoria

Regional Cities Victoria (RCV) today launches ‘The Winning Formula for Regional Victoria’, a document
outlining the group’s priorities to ensure a lasting legacy is created for the whole of regional Victoria as part of the 2026 Commonwealth Games.

As regional Victoria prepares for the biggest event it has ever seen, RCV is calling for measures that ensure all regional cities benefit from the influx of athletes, visitors and publicity the Games will bring.

RCV Chair, Cr Andrea Metcalf said the 2026 Commonwealth Games presents a unique opportunity that
must reach all parts of the State – capturing real and positive benefits for locals, and creating a sustainable legacy that future generations can enjoy.

“This is the time for regional Victoria to shine on the world stage and we must ensure that we build on this exposure, maintaining momentum as we showcase our amazing regional cities and get long-term value out of the investment made through the Games,” she said.

“It is a priority that First Peoples and Traditional Owners are engaged in all aspects of the Games delivery
and ensure they reflect Victoria’s rich cultural history.”

“With the Regional Jobs and Infrastructure Fund discontinued in the 2023-24 Victorian Budget, our regional cities need assurance from the Government that they will invest in our regions to ensure they continue to be great places to live, work and visit.”

The Winning Formula for Regional Victoria examines six key areas with recommendations that will
ensure a lasting legacy for every regional city beyond the event period and across the whole state, not just for the five cities hosting events:

• Pre-Games Opportunities – hosting & training: Facilitation of partnerships between regional cities and participating countries to provide a base for their training and Games preparation.
• Infrastructure – repairing an old legacy & creating a new one: Including $2 million to conduct repairs or upgrade sporting facilities in each regional city; $30 million for a Regional Parks and Civic Space Program, creating new parkland and upgrading existing spaces; and all equipment provided for the Games be donated to local regional sporting organisations.
• Cultural Experiences – community engagement: the Victorian Government to sponsor free cultural activities and events across the regions.
• People – skilled workers & volunteers: creation of a new local Victoria Skills Authority liaison officer role to be based in each regional city for at least three years; establish a Commonwealth Games Regional Volunteer Program to provide training, pre- employment qualifications and supported accommodation for 16–21-year-olds to volunteer at the Games.
• Business procurement – business opportunities: regionally based businesses to make up 100% of all opportunities created through the Games’ procurement processes, with priority given to First Nations businesses and employers.
• Tourism and the visitor economy: Invest $30 million into a tourism campaign; offer regional tourism packages when people are purchasing their Games tickets; ensure the Royal Baton Relay visits all 10 regional cities, and that the baton is designed by a regional Indigenous artist.

Regional Cities Victoria comprises the 10 largest regional cities in Victoria – Ballarat, Bendigo, Geelong, Horsham, Latrobe, Mildura, Shepparton, Wangaratta, Warrnambool and Wodonga.

Regional Victoria is home to more than 1.5 million people, or a quarter of all Victorians. Approximately
800,000 people call one of our regional cities home and the cities make up 10 per cent of Victoria’s
economy.