Public Transport in the 2026 Victorian State Budget: Part 2 - The budget

"A drought-breaking budget for metropolitan public transport services"

The 2026 Victorian State Budget will be tabled in Parliament (and become public) early this afternoon. 

I gave the broader context for it in Part 1. Increased train services discussed here and here. Some significant bus service upgrades outlined here. 

Also see my write-ups on previous budgets here: 2025, 2024, 2023 

You will find the budget (when it is tabled) here: https://www.budget.vic.gov.au

What we know so far

There have been several pre-budget announcements in the last fortnight. Those significant for public transport include:

* $44m for 50 more station PSOs and what they call an 'intelligence-led deployment model', that is more PSO hours at busy stations and the replacement of PSOs at quiet stations with roving PSOs.

* $432m for April's free travel continued into May with half-price fares for the rest of year. 

* More frequent evening and weekend trains for the Clifton Hill and Burnley groups (with more on the service uplifts here and here)

* An order for 25 X'Trapolis trains to replace the Comeng fleet

* 9 car trains to Wyndham Vale (which follows pre-budget surveys by local MPs) 

* $100m over 4 years for bus service upgrades

* Some road and pedestrian crossing improvements

* Development works for Melton rail electrification

* Car registration fee rebates (available thorough application)

These represent a mix of election-year politics (notably the fare cuts, car registration rebates and PSOs), responding to growth pressures and some very welcome boosts to public transport service (after years where not much happened, especially for metropolitan trains and buses).

I cannot emphasise the historical significance of the increased services enough - the evening rail timetable improvements reverse some of the cuts made in the 1970s, when Melbourne was about half its current population. The bus upgrades are also welcome. Service has been starved for too long and has been overdue for improvement as other cities like Sydney, Perth and even Auckland surpass us. 

Video summary of service aspects to gain from the budget

Watch it here: https://youtu.be/R3T-srbfeAk (available when budget is tabled)

What else is there?

After having a good run for so long, major capital works were not a priority for this year's budget. What did get funded was for early works (Melton electrification) or business case (Northern Rail Program development - see below). 

Those in the south-east backing a Clyde extension would be disappointed as this didn't feature though they do get some bus upgrades. 

There is also a slowing of the Level Crossing Removal Program. Signs on the Frankston line promise it would be level crossing free by 2029. However this budget defers level crossing removals at Highett and Mentone to 2031-32 to align it with the SRL delivery schedule and to lessen disruptions. 

The 2026-27 target has 12 level tram stops planned, with this being a similar number to those built in 2024-25.