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One Gippsland welcomes Federal Budget priorities but says freight and renewable infrastructure investment was missed

One Gippsland welcomes Federal Budget housing, cost-of-living and skills measures, but says lack of freight and renewable energy infrastructure investment overlooks Gippsland’s growth needs and future economic potential.

By news@gippsland - 14th May 2026 - Back to News

One Gippsland has welcomed the Federal Budget's focus on housing‑enabling infrastructure, cost‑of‑living relief and skills, but says the absence of investment in Gippsland's freight routes and community infrastructure for renewable energy zones represents a missed opportunity for a region central to Australia's economic future.

Cr Nathan Hersey - One Gippsland Chair and Mayor of South Gippsland Shire Council

Regional growth investment

Chair of One Gippsland, Cr Nathan Hersey, said the region continues to deliver for the nation through agriculture, energy and tourism, and needs targeted investment in the everyday enablers that support a growing population.

"We are one of the fastest‑growing regions in the country, and Gippsland's growth must be matched by long‑term investment in transport, housing, community infrastructure and essential services," Cr Hersey said.

The Budget's $2 billion housing enabling infrastructure investment with a $500 million carve out for regional Australia was welcomed as a response to One Gippsland's call for housing‑enabling infrastructure such as roads, water, sewerage and power. "This is a positive step and reflects our advocacy that Gippsland cannot meet housing demand without unlocking enabling infrastructure," Cr Hersey said.

Cost relief support

Cr Hersey also welcomed continued investment in the Growing Regions Program that can deliver community and liveability infrastructure, noting that Gippsland must receive a fair share that reflects the scale of growth across the region. Cost‑of‑living measures in the Budget included temporary fuel excise relief and the reduction of the heavy vehicle road user charge.

"These are acknowledged as important for local sectors that rely on the movement of goods and people like the food and fibre and tourism sectors as was support for small business through asset write‑offs," Cr Hersey said.

Gippsland infrastructure gaps

One Gippsland welcomed the Federal and State Government's partnership investment in the TAFE Centre of Excellence announced earlier this month. This investment in local skills development is essential to advancing our young people and recognises our role as an Australian leader in renewable energy and Australia's first offshore wind renewable energy zone. "Continued investment in healthcare, skills and workforce development is essential to ensuring Gippsland communities remain strong and able to support future growth," Cr Hersey said.

However, Cr Hersey said the Budget leaves several critical gaps for Gippsland. Although funding for Black Spot program and the Roads to Recovery program is welcomed, the absence of funding for the shovel‑ready Sale Alternate Truck Route is deeply disappointing given its importance to freight efficiency, road safety and east–west connectivity across Gippsland," he said.

'Targeted funding for road improvements and road safety is constantly a major issue and concern for residents throughout Gippsland, as our people and industry rely heavily on our roads network for the movement of people, goods and food. Despite major national freight and fuel‑resilience packages, no Gippsland‑specific road or freight projects were listed in the Budget's $8.6 billion infrastructure investment program.

Tourism investment gap

Cr Hersey also noted the lack of material investment in regional tourism, despite Gippsland's status as a major visitor economy. "Gippsland is a regional tourism powerhouse, yet the Budget contains no dedicated regional tourism investment and only broad national programs," he said.

One Gippsland said it would continue to work with all levels of government to focus on the key enablers of growth and prosperity across the region. "There are positives in this Budget, but for our economy to truly respond to the challenge before us as a leader in energy and agriculture, we need the right level of investment across all the growth levers," Cr Hersey said.

Gippsland budget measures

Key initiatives announced that impact Gippsland include:

Regional Funding Programs

• $750 million over four years for Thriving Suburbs, Growing Regions program, specific allocations between programs were not stated.

Roads and Rail

• $845.9 million in 2026–27 under the Roads to Recovery Program, with $730.7 million directed to regional areas
• $157.4 million in 2026–27 under the Black Spot Program, with 50 per cent of funding directed to regional areas on average

Cost of living measures

• $2.9 billion to more than halve the fuel excise , equating to a 32 cent per litre reduction for petrol and diesel and slash the heavy vehicle road user charge to zero from 32.4 cents per litre for three months to 30 June 2026
• New $250 annual tax offset will apply from the 2027–28 income year for income earned from work

Skills and Training

• $27 million over three years from 2026–27 (and an additional $3 million in 2029–30) to expand the TAFE Technology Fund and support mobile VET delivery in outer regional and remote locations
• $85.2 million over 4 years from 2026–27 for skills recognition initiative for migrations designed to fund faster and more flexible skills assessment

Health

• $1.8 billion over five years to fund Medicare Urgent Care Clinics. Once all clinics have been established by 30 June 2026, there will be 47 Medicare UCCs supporting communities in regional, rural and remote Australia, with 137 Urgent Care Clinics Australia wide

Regional Housing

• $500 million for regional Australia as part of a $2 billion Local Infrastructure Fund for local governments and state utilities including for roads, water, power and sewerage

Financial Assistance Grants

• $2.9 billion in Financial Assistance Grants brought forward from 2026–27 into 2025–26 years

Small Business

• The productivity package includes a permanent $20,000 annual instant asset write‑off for small business, loss‑carry‑back provisions and major red‑tape reductions to help small businesses invest, innovate and lift productivity

One Gippsland works to make connections between government, business and the community, while also working collectively to champion the interest of our region and our people.

Pictures from One Gippsland website.

Source: http://gippsland.com/

Published by: news@gippsland.com

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  Dental experts warn Labor's proposed public dental expansion could worsen Gippsland wait times, with vulnerable residents already facing waits exceeding two years in some areas.
• Latrobe City Council will push six reforms addressing regional investment, housing, infrastructure, funding fairness and sustainability at MAV State Council
  Latrobe City Council will take six reform proposals to the MAV State Council, targeting fairer funding, housing, planning, investment, infrastructure and support for regional communities.
• Parliamentary inquiry reveals CFA resource shortfalls after years of Labor neglect, leaving Gippsland communities increasingly vulnerable
  A Parliamentary inquiry has highlighted declining CFA volunteer numbers, ageing firefighting vehicles, workforce shortages and poor fuel management, prompting Nationals' Danny O'Brien to demand urgent action to protect Gippsland communities.
• Wellington Shire Council backs campaign seeking greater rural investment, improved roads, infrastructure funding and regional economic growth
  Wellington Shire Council is backing Rural Councils Victoria’s campaign for greater investment in rural infrastructure, including roads, community facilities and a proposed $1 billion regional productivity and growth fund.
• Become a Great Southern rail trail passport collection point with other updates from the South Gippsland Shire Council
  South Gippsland Council seeks Rail Trail Passport collection points, announces a youth bravery award, Toora roadworks, grants, community events, transport updates, tenders, services and opportunities.
• Regional hospitals face staffing and funding pressures as new nurse-to-patient ratios take effect across Gippsland health services
  East Gippsland Shire Council is installing two louvered roofs at Bairnsdale Library, improving shade, weather protection and outdoor activities, with works expected to take two weeks.
• Regional hospitals face staffing and funding pressures as new nurse-to-patient ratios take effect across Gippsland health services
  New nurse-to-patient ratios have passed Parliament, with Gippsland hospitals reclassified, but workforce shortages and funding pressures raise concerns over implementation and patient care.
• Wellington Shire Council secures $2M for road safety improvements across five Gippsland towns before mid-2027
  Wellington Shire Council has secured $2 million for road safety upgrades across Maffra, Stratford, Sale, Wurruk and Heyfield, with works beginning before Christmas and completion expected by mid-2027.
• Yarragon weekend escape offers country hospitality, local flavours, shopping and scenic West Gippsland adventures
  Yarragon offers an easy West Gippsland weekend escape from Melbourne, combining boutique shopping, local food and wine, scenic walks, galleries, markets and welcoming country accommodation.
• The Nationals' $5 Better Roads Plan promises pothole repairs and long-term maintenance across neglected Gippsland road network
  The Nationals' $5 billion Better Roads plan would tackle Gippsland's deteriorating roads, repair one million potholes, restore preventative maintenance and establish Better Roads Victoria for improved standards.
• Latrobe City Council pushes for jobs, investment, housing and community safety during Victorian Parliament delegation
  Latrobe City Council has urged Victorian leaders to back jobs, housing, investment, community safety, energy transition projects and infrastructure to strengthen long-term regional economic growth.
• Visa delays threaten regional harvest workforce as farmers and tourism employers demand urgent federal government action before summer
  Farmers, tourism operators and regional employers warn visa delays could cause critical workforce shortages during summer harvest and tourism periods, urging the Federal government to restore timely visa processing.
• Darren Chester congratulates Maffra student Jaxon Marshall on National Youth Parliament selection representing Gippsland in Canberra
  Maffra Secondary College student Jaxon Marshall will represent Gippsland at the 2026 National Youth Parliament, earning praise from Darren Chester for bringing regional and agricultural perspectives to Canberra.
• Regional Development $750,000 investment expands employment and education support for 120 Latrobe Valley young people through 2028
  The Victorian government is investing a further $750,000 in the Ladder Step Up Latrobe Valley Program, supporting 120 young people with employment, education, training and independence opportunities through 2028.
• Productivity Commission backs Peri Urban Councils' call for infrastructure before housing targets across Victoria
  The Productivity Commission has backed Peri Urban Councils Victoria's call to link housing targets with funded infrastructure, supporting development, coordinated planning and financing for 85,450 new homes across five Victorian growth councils.
• Melina Bath honours Colin "Stocky" Stockdale for 63 years of outstanding CFA service to South Gippsland community
  Melina Bath congratulated Colin "Stocky" Stockdale on receiving the CFA's highest honour, recognising his 63 years of leadership, mentorship and dedicated service protecting South Gippsland communities.
• The Nationals unveil $40M plan offering health workers incentives to fill critical regional jobs across Gippsland and Victoria
  The Nationals propose $40 million over four years for a Victorian Rural Health Workforce Incentive Scheme, offering eligible regional health workers up to $10,000 for relocation, accommodation and professional development.
• Darren Chester calls for Aged Care Minister's resignation over home support delays
  Federal Member for Gippsland Darren Chester has called for Aged Care Minister Sam Rae's resignation, citing lengthy Support at Home delays, unanswered assistance requests and thousands of deaths while awaiting support.
• Tarwin River partnership launches six projects for catchment restoration and community stewardship across West Gippsland
  West Gippsland CMA has launched Together for the Tarwin, funding six projects over 18 months to restore wetlands, waterways and habitats while strengthening community stewardship across the Tarwin catchment.
• New Bairnsdale worker accommodation nears completion, boosting healthcare workforce capacity across East Gippsland communities
  Bairnsdale new 28-apartment healthcare worker accommodation is nearing completion, providing affordable housing for up to 32 staff and strengthening regional health services while supporting local jobs and investment.
• Carran Carran restoration project strengthens river health, habitat connectivity and flood resilience across West Gippsland
  West Gippsland CMA's long-term Carran Carran restoration project is improving river health, reducing flood-related avulsion risks, restoring habitat connectivity, controlling willows and supporting native fish, agriculture and communities.
• Darren Chester slams Victorian Labor over five-year delay in critical Mallacoota-Genoa Road upgrade despite federal funding
  Darren Chester has slammed Victoria's Labor Government over the stalled Mallacoota-Genoa Road upgrade, despite $10m federal funding committed in 2021, saying Gippsland communities have waited five years for promised safety improvements.
• Latrobe Council urges Premier Carroll to fast-track investment, industry growth and secure future jobs in Valley
  Latrobe City Council has urged newly appointed Premier Ben Carroll to meet urgently on economic diversification, investment and job creation as the region faces energy transition, manufacturing job losses and Yallourn 2028 closure.
• Victoria funds hundreds of landcare projects with $3.58M environmental investment across communities and regions
  Victoria’s 2026 Landcare Grants provide $3.58 million statewide, including $337,250 for West Gippsland projects restoring habitat, waterways and landscapes while supporting volunteers, families and young people.
• Paynesville Maritime Precinct officially opens following $13M investment to boost boating, tourism, jobs and local business growth
  Paynesville’s $13 million Slip Road Maritime Precinct officially opened, delivering improved waterfront access, jetties and boating facilities to boost tourism, local businesses, jobs and Gippsland Lakes recreation.
• Metung mother Lily Martyn establishes foundation supporting neurodivergent children, young people and families across Gippsland
  Metung mother Lily Martyn has launched Do It For Foundation Gippsland, supporting neurodivergent children, young people and families. The foundation has connected 95 East Gippsland families seeking support, understanding and practical solutions.
• Latrobe City pushes for fair community benefits, transparent water pricing and long-term investment as Yallourn Mine rehabilitation progresses
  Latrobe City Council has urged fair community reinvestment, transparent water pricing and long-term funding certainty as EnergyAustralia seeks water entitlement for Yallourn Mine rehabilitation.
• Have your say on the Planning Scheme Amendment C161egip - Lakes Entrance Northern Growth Area (Revised) to unlock growth until 21 September 2026
  East Gippsland Shire Council is simplifying planning controls in Lakes Entrance Northern Growth Area, aiming to unlock housing growth, reduce red tape and support development over the next 30-plus years.
• Draft Omeo District Place Plan released for after 10 months of consultation for final community feedback until 2 October 2026
  East Gippsland Shire Council has released the draft Omeo District Place Plan for feedback, prioritising health, education, housing, employment, social connection, environmental care and emergency preparedness. Submissions close October 2.
• Moondarra Reservoir gains new pathway and native garden beds, enhancing recreation, accessibility and Aboriginal cultural connections
  Gippsland Water has completed a new pathway and native garden beds at Moondarra Reservoir, improving visitor access, enhancing recreation and incorporating local flora, Aboriginal cultural information and community collaboration.
• Latrobe City recognised among Australia's most affordable regional centres for businesses, investors and skilled workers
  Latrobe City welcomes research ranking Traralgon-Morwell third nationally for affordability, highlighting lower costs, skilled workers, infrastructure and investment opportunities across emerging industries.
• Marlo's Healeys road timber bridge to be replaced with stronger steel structure built for 100 years
  East Gippsland Shire Council will replace Marlo’s ageing Healeys Road timber bridge with a $642,780 steel structure, improving safety, access, load capacity and long-term reliability for local users.
• Melina Bath calls on Labor to protect locally raised foreshore funds and community priorities across Eastern Victoria
  Nationals MP Melina Bath has urged Labor to guarantee $500,000 raised by San Remo residents remains dedicated to local foreshore projects following committee merger concerns.
• Maffra student Jaxon Marshall champions resilient agriculture during National Youth Parliament visit to Canberra
  Maffra student Jaxon Marshall represented Gippsland at National Youth Parliament, delivering a passionate speech advocating resilient agriculture, regenerative farming, research and stronger support for farmers and Australia’s future.
• Liberal Nationals introduce bill to repeal Labor's firearms laws and abolish national gun buyback scheme
  Federal Member for Maranoa David Littleproud has introduced a Bill, seconded by Andrew Wilcox, to repeal Labor’s firearms laws, restore previous Commonwealth regulations and abolish the stalled National Gun Buyback Scheme.
• Six Latrobe Valley businesses receive funding to diversify, boost productivity and strengthen supply chains during economic transition
  Six Latrobe Valley businesses will receive funding through the Gippsland Supply Chain Resilience Program to improve productivity, purchase equipment, expand markets and strengthen supply chains amid regional economic transition.
• New Flight Test Command Centre opens at Latrobe Airport, boosting advanced aviation jobs, investment and innovation
  A new Flight Test Range Command Centre at Latrobe Regional Airport has opened, supporting advanced aviation research, attracting investment, strengthening local businesses and creating new jobs across Gippsland.
• Darren Chester joined Wellington Shire representatives to welcome 57 new citizens at The Wedge ceremony
  Wellington Shire welcomed 57 new Australian citizens at The Wedge, with Federal Member Darren Chester and council representatives celebrating their milestone and contributions to Gippsland communities.
• Hazelwood North CFA to receive long-awaited new station under Nationals and Liberals' Latrobe Valley infrastructure commitment
  The Nationals and Liberals have pledged a new three-bay Hazelwood North CFA station, replacing inadequate facilities and supporting volunteers through increased regional infrastructure funding.
• Reliable water access drives Busch Organics' sustainable farming success and secures its fourth-generation future in East Gippsland
  Busch Organics relies on Mitchell River and groundwater to sustain organic vegetable production, while soil moisture technology, sustainable practices and family farming strengthen productivity and future generations.
• Latrobe Regional Gallery unveils spring exhibitions celebrating place, culture, community, history and the natural world
  Latrobe Regional Gallery spring program features five exhibitions exploring Gippsland places, community, culture, history and nature, alongside Japanese traditions and contemporary artistic responses.