1. 2010-11 Victorian State Budget - IPAA regional lunch Grant Hehir Secretary, Department of Treasury & Finance

2. Victorian Budget 2010-11 Victorian economy 2010-11 Budget financial results 2010-11 Budget initiatives

3. Victorian Budget 2010-11 Victorian economy

4. Most severe global recession since 1930s Source: OECD Industrial production in the G7 during recessions

5. GFC impact more severe overseas Sources: Sources: ABS; US BLS; Eurostat, ONS, Economist Unemployment rate

6. Annual employment growth Source: ABS per cent

7. Victoria created 99 400 jobs in last 12 months Source: Australian Bureau of Statistics

8. Victorian and Euro Zone business confidence Sources: National Australia Bank; European Commission optimistic pessimistic Points of std devNet balance

9. Victorian dwelling approvals increasing Source: Australian Bureau of Statistics 000’s

10. Annual population growth per cent Source: ABS

11. Greater Dandenong population persons (‘000) Source: Australian Bureau of Statistics

12. Greater Dandenong building approvals Source: Building Commission

13. South Eastern Melbourne employment (includes Greater Dandenong) persons (‘000) *original data, 3 month rolling averageSource: Australian Bureau of Statistics per cent

14. Victorian economic projections 2008-092009-102010-112011-122012-132013-14 ActualForecast Real GSP0.82.253.253.00 (1.50)(2.50) Employment0.22.252.001.75 (0.25)(1.25) Unemployment rate5.15.50 5.25 (6.50)(6.75) Wage price index4.03.003.253.50 Consumer price index2.81.752.252.50 (2.00) Population2.22.101.901.801.70 (1.90)(1.80)(1.70)(1.60) 2010-11 Budget projections (projections in parentheses are from 2009-10 Budget Update where different)

15. Victorian Budget 2010-11 Risks

16. Sustained pressure on AUD Source: Consensus Economics; Reserve Bank of Australia

17. Annual inflation rates Source: ABS per cent

18. Economic reform strategy In light of these risks there is an economic reform agenda in place: –prudent financial management –reducing business costs –improving competitiveness and productivity education and skills health market design infrastructure

19. 2010-11 Budget financial results

20. 2010-11 financial objectives and strategies Source: Department of Treasury and Finance ObjectiveShort term targetLong term target Net result from transactions (operating surplus) At least $100 million in each year.Maintain a substantial net result from transactions (operating surplus) that allows for the delivery of the Government’s infrastructure objectives. Net financial liabilitiesMaintain a AAA credit rating.Maintain government net financial liabilities at prudent levels. InfrastructureImplement strategic infrastructure projects. Deliver world class infrastructure to maximise economic, social and environmental benefits. TaxationImplement reforms.Provide a fair and efficient tax system that is competitive with other states. Service deliveryImplement the 2006 election commitments. Provide improved service delivery to all Victorians.

21. Maintaining a substantial operating surplus Net result from transactions $ million Source: Department of Treasury and Finance Short term $100 m target

22. Maintaining a substantial operating surplus Source: Department of Treasury and Finance per cent Revenue and expense growth relative to nominal GSP

23. Maintaining a substantial operating surplus - Discretionary revenue not fully recovered Discretionary Revenue (GST + State Taxation) Source: Department of Treasury and Finance

24. Maintaining prudent financial liabilities - Net debt reduced since 2009 per cent Source: Department of Treasury and Finance General government net debt/gross state product

25. Deliver world class infrastructure $ billion Source: Department of Treasury and Finance Total infrastructure spend

26. Deliver world class infrastructure $ billion Source: Department of Treasury and Finance Sources of funding for net investment

27. Improving business competitiveness Payroll tax cut –Saving to business of $193 million –Seven cuts in 10 years Workcover premiums cut –Saving to business of $240 million –Six cuts in last 7 years Land tax cuts –Exemption of up to two years for construction of residential aged care facilities and retirement villages Red tape reductions –Government has doubled target and now plans to cut regulatory burden by $500 million per annum by 2012

28. Payroll tax rate cut to 4.90 per cent per cent Payroll tax rate Source: Department of Treasury and Finance

29. WorkCover premiums cut by 3.5 per cent per cent Source: WorkCover Authorities ‘000

30. 2010-11 Budget initiatives - provide improved service delivery to all Victorians

31. 2010-11 Budget output initiatives Net impact of 2010-11 Budget new output initiatives Source: Department of Treasury and Finance

32. 2010-11 Budget asset initiatives 2010-11 Budget new asset funding Source: Department of Treasury and Finance

33. Investing in education Victorian Schools Plan – First tranche exceeded –553 school upgrades/refurbishments funded this term –Exceeded promise to fund 500 this term Blueprint for education and early childhood development –42 actions towards system improvement, partnerships with parents and communities and workforce reform $287 million to support non-government schools –Support for disadvantaged students and students with disabilities Building the Education Revolution –Delivering $2.6 billion of capital works in partnership with Commonwealth Government

34. Investing in lifelong learning Early childhood development –3,590 extra kindergarten places and 126 kindergarten teachers –Partnership with the Commonwealth Government to deliver National Quality Agenda for Early Childhood Education and Care –Establishing the Victorian Deaf Education Institute –Major upgrades to Glenroy Specialist School, Northern School for Autism and Eastern Autistic School Support for TAFE sector –New infrastructure including new Teaching & Learning Centre for NMIT –Apprenticeship completion bonus and accommodation allowance

35. Putting patients first … Capital upgrade for Victorian health care facilities ($2.3 billion) –$618 million for regional hospitals in Bendigo, Coleraine, Leongatha, Ballarat, Geelong, Wonthaggi and Healesville –Box Hill Hospital and expansion of Sunshine Hospital Making Victoria a leader in Cancer research and treatment –Parkville Comprehensive Cancer Centre, Olivia Newton-John Cancer and Wellness Centre - Stage 2a, Ballarat Regional Integrated Cancer Centre Immediate service funding boost ($760 million) –22,000 additional inpatient services in 2010-11 –9,000 elective surgery treatments over two years –32,000 additional outpatient appointments in 2010-11 Expanding support for people experiencing mental illness –New Mental Health Bill –Boosting early intervention programs for young people including youth suicide prevention and youth and mental health outreach teams

36. … and a second budget COAG Agreement on Health and Hospitals Reform, April 2010 –Locked in an extra $4.7 billion for Victorian patients over the next ten years –Lifts the Commonwealth contribution from 41% to 45% An extra $935 million for Victoria over next four years –150,000 more emergency departmental patients each year being treated –34,000 more patients receiving elective surgery faster –additional 332 sub-acute beds enabling treatment of 5,000 patients annually An extra $386 million for Victorian services run by Commonwealth over next four years –General Practice and primary health care services, more health workers, aged care and mental health services

37. A Fairer Victoria – strengthening the safety net Helping households with rising living costs –Increasing the water concession for 669,000 households –Continuation of the Waterwise program for water audits & retrofitting Looking after vulnerable children –Addressing out of home care service growth and enhancing quality services for traumatised children ($35 million) –Family services to better assist children at risk ($24 million) Ongoing support for people with a disability –Increase in funding for Community Service Organisations –Better resourcing 24-hour shared support accommodation ($35 million plus $11 million in asset funding) –Supporting people with autism and their families ($7.5 million)

38. Retargeting the First Home Bonus 69% of Victorians own their home First Home Bonus created 19 000 jobs last year (HIA) FHB takes pressure off the rental market First Home Bonus refocused to newly constructed homes Boost for housing and employment in CADs ($10 million) Support for community infrastructure ($22 million) NRAS - $237 million for up to 7 500 affordable dwellings

39. Delivering the Victorian Transport Plan 50 new low floor trams and supporting infrastructure to move an extra 10,000 passengers at a time 20 premium station upgrades including 100 additional station staff Four new train stations in growth corridors –Cardinia Road, Williams Landing, Lynbrook and Caroline Springs Transport connections program to assist regional and rural communities Geelong Ring Road (stage 4c), Regional Rail Link Monash Freeway Noise Walls

40. Working with the community to tackle the causes of crime Delivering the Respect agenda –Funding A Right to Respect tackling sexual and domestic violence against women ($14 million) –Fifty five additional youth workers to support young people ($22 million) –Launched the Knives Scar Lives campaign Swifter access to justice –Managing court demand and legal services master plan ($64 million) –Boost to Victoria Legal Aid ($50 million)

41. Promoting community safety Delivering 1,966 frontline police back on the streets –Biggest one-off boost in Victoria’s recent history Building an effective corrections system –Increased capacity for women’s prison accommodation ($81 million) –Additional men’s prison accommodation ($46 million) –Continuation of Better Pathways strategy to reduce women’s imprisonment and re-offending

42. Bushfire reconstruction and preparedness 2009-10 Budget: Immediate Response ($986 million) –33 Community Recovery Centres –Over 200 case managers appointed –Clearing over 3,000 damaged properties Interim Report response announced in 2009-10 ($61 million) –Improvements to bushfire information services New funding in 2010-11 Budget ($254 million) –Preparedness and community education ($92 million) –Emergency response initiatives ($79 million) –Extra support for Victorian Bushfire Reconstruction and Recovery Authority

43. Our environment – continuing Victoria’s Leadership Leadership in tackling climate change –Support for ETS –Climate Change White Paper to be delivered this year –Climate Change Bill –Land & Biodiversity package released in December 2009 Jobs for the Future Economy statement ($175 million) –Improve the energy and water efficiency of the State’s hospitals, schools and government buildings –New research and industry partnerships in sustainable industries Free entry to national parks –Estimated to boost visitation by 25-50% a year

44. Metropolitan Map - Dandenong Continuation of Revitalising Central Dandenong Separating road and rail Dandenong corridor investigation Duplication of Hallam road in Hampton Park Development of metropolitan freight terminals Supporting 90 jobs at the Ceramic Fuel Cells Limited production facility in Noble Park through BlueGen units Dandenong/Springvale School Regeneration Project Funding to provide free entry to William Ricketts Sanctuary and National Rhododendron Gardens

45. Regional initiatives – Barwon South West Connecting the Geelong Ring Road to Surf Coast Highway – Stage 4c Expansion of acute capacity at Geelong Hospital Planning and land purchase for new community hospital in Geelong Southern suburbs Urban renewal program in Corio and Norlane – including bus and rail improvements $26 million for the redevelopment and expansion of Coleraine Hospital New multidisciplinary centre in Geelong to respond to sexual assault New and upgraded VICSES equipment at Winchelsea, Port Campbell and Lismore Delivering community infrastructure for Armstrong Creek Improved transport services between Colac Otway and Surf Coast through the Transport Connections program Western Heights regeneration project

46. Regional initiatives - Grampians $55 million to redevelop Ballarat Regional Integrated Cancer Centre New facilities to replace Daylesford police station New and upgraded VICSES equipment at Dimboola, Horsham, Nhill and Bacchus Marsh Intersection improvements in Ballarat – Buninyong Road at Mount Clear Upgraded facilities at Grampians National Park Transfer Victoria police call taking and dispatch centres to Emergency Services Telecommunications Authority in Ballarat Connecting transport disadvantaged individuals and groups to transport services in the Ballarat area as part of Transport Connections New Regional Rail Link to connect regional Victoria New permanent buildings at Halls Gap Primary school and Woady Yaloak Primary School

47. Regional initiatives – Loddon Mallee $473 million for new Bendigo Hospital – largest regional hospital project undertaken in Victoria Ouyen school regeneration project New Regional Rail Link to connect regional Victoria Bendigo Education Plan (Regeneration of Bendigo South East Secondary College and Weeroona College) Upgrades to Tarrengower prison Modernisation of Bendigo Senior Secondary College New facilities at Lockwood South Primary School Echuca Police Station land purchase New and upgraded VICSES equipment and Kyabram and Wedderburn Delivering seminars and workshops to support small businesses

48. Regional initiatives – Hume Ongoing delivery of bushfire reconstruction and recovery New and upgraded VICSES equipment at Wodonga, Yackandandah, Murchison, Euroa, Tallangatta, Tatura, Alexandra, Kilmore, Mansfield and Numurkah New permanent facilities at Tawonga primary school Expansion of ambulance services for Kinglake and Whittlesea Ongoing work for modernising irrigation infrastructure in Northern Victoria through Foodbowl Modernisation project and North East rail revitalisation project Rebuilding Toolamba primary school

49. Regional initiatives – Gippsland New police station for Loch Sport Modernisation of Trafalgar police station $25 million for Leongatha Hospital Stage 2 redevelopment Extension of emergency department at Bass Coast Wonthaggi Hospital Upgrades to the Princes Highway East from Traralgon to Sale Summerland Estate Rehabilitation in Phillip Island Replacement of Callignee hall Support for Lake Tyers Aboriginal community Delivering seminars and workshops to assist small businesses in Leongatha and Lakes Entrance

50. 2010-11 Victorian State Budget - IPAA regional lunch Grant Hehir Secretary, Department of Treasury & Finance