One Gippsland says the absence of investment in Gippsland’s freight routes and community infrastructure for renewable energy zones in Tuesday’s Federal Budget represents a missed opportunity for a region that’s central to Australia’s economic future.
One Gippsland Chair and South Gippsland Shire Council Mayor, Nathan Hersey (pictured) 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,” Chair Hersey said.
The council advocacy body welcomed the Budget’s $2 billion housing enabling infrastructure investment, which featured a $500 million carve out for regional Australia.
“This is a positive step and reflects our advocacy that Gippsland cannot meet housing demand without unlocking enabling infrastructure.”
Chair Hersey also welcomed continued investment in 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.
“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,” Chair Hersey said.
One Gippsland also welcomed the Federal and State Government’s partnership investment in the TAFE Centre of Excellence announced earlier this month.
“Continued investment in healthcare, skills and workforce development is essential to ensuring Gippsland communities remain strong and able to support future growth,” Chair Hersey said.
However, he 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, good 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.”
Chair 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.”
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.A 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 year.
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 member councils are: Bass Coast Shire Council, Baw Baw Shire Council, Destination Gippsland, East Gippsland Shire Council, Federation University, Food and Fibre Gippsland, Gunaikurnai Land and Waters Aboriginal Corporation, Latrobe City Council, South Gippsland Shire Council, TAFE Gippsland and Wellington Shire Council.
