Victoria to Spend $81M on Policy Advice

Victoria is set to invest more than $81 million in external economic and policy advice in the upcoming financial year.

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Pick & Scroll News
June 09, 2025

Victoria is set to invest more than $81 million in external economic and policy advice in the upcoming financial year. This marks a 35% increase from current spending as the state aims to improve government decision-making amid concerns about rising debt and a smaller public sector workforce.


Last financial year, the state initially allocated $60.3 million for external advisory services. That figure was later increased by $14.9 million, ending the year at $75.2 million. The latest state budget has raised this amount further to $81.4 million. The government says the additional funding will support in-depth economic analysis and back the implementation of its economic growth plan.


A portion of the $81 million will fund internal Treasury initiatives such as an $11.5 million effort to streamline business regulation. This project aims to cut regulatory red tape by $500 million by 2030 and reduce the number of business regulators by half. Other spending will include grants to councils and regulators for digital system upgrades, AI implementation and simplifying approval processes in regional areas.


An additional $42.2 million has been allocated to broader financial advisory services. At the same time, funding for commercial and infrastructure advice is set to rise to $92.1 million. Over the past five years, Victoria has spent $561 million on consultancy services. Treasury alone has issued over $160 million in contracts to both large firms and smaller consultancies.


The increase in advisory spending comes as Victoria faces record debt levels, which are predicted to reach $194 billion within four years. The state continues to hold the lowest credit rating in Australia. Interest payments could grow to $29 million each day, leading officials to meet with international credit rating agencies. At the same time, the government is aiming to save $3.3 billion by cutting 1,200 public service roles. This has sparked debate over the balance between in-house capabilities and the rising reliance on external consultants.