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South-west roads, rail and healthcare were given a boost in the 2017-2018 Victorian Budget, which invests a total of $4 billion in regional Victoria.
Warrnambool Base Hospital has been given $7.5 million for planning and design work for its stage two upgrade, worth $112 million.
Leaders say the commitment means the entire project will be completed, setting the hospital up for the next 50 years and providing a boost for the region.
Stage two of the project, which was first envisioned back in 2005, will involve the expansion of both the emergency department and operating theatres, short-stay unit and pathology and radiology block.
South-west roads will receive $113 million – a significant chunk of the $530.6 million being invested in regional roads and bridges across the state.
The funding will comprise of $65.8 million for a south-western Victorian roads package, $37.2 million to seal local narrow roads and $10 million for the Henty Highway and the Green Triangle around Portland.
Funding to upgrade the Warrnambool line was announced at the weekend, with $100 million set to pave the way for VLocity trains to run on the Warrnambool line, bringing with it shorter trips and extra services.
However, the source of the funding, a federal government asset recycling scheme that gives states a 15 per cent bonus for selling private assets, has been the cause of conflict between the state and federal governments.
Four south-west schools will share in $3.1 million for upgrades, including Warrnambool East Primary School, Portland South Primary School, Penshurt Primary School and Branxholme-Wallacedale Community School.
Sporting facilities including the Port Fairy Bowls Club and Warrnambool's Reid Oval are set to share in $110 million from the community sports infrastructure fund, however, the amounts allocated to each project have not been finalised.
A payroll tax cut of 25 per cent promises to boost the regions, with the payroll tax rate set to drop from 4.85 per cent to 3.65 per cent for business operating mostly in regional Victoria.
Treasurer Tim Pallas said the move, an Australian first, would directly reduce costs for around 4000 businesses.
"It will mean Victoria's regional employers will have the lowest payroll tax rate in the nation," he said.
"This will support employers to grow their businesses, encourage job creation, and ensure our regional communities share the benefits of economic growth."
A share of $29 million will fund early works under the Shipwreck Coast Master Plan, however, the amount allocated to the project is yet to be finalised.
Warrnambool Special Developmental School has missed out on funding despite six other special schools across the state, including two in regional areas, attaining $44.4 million.
Overall the state budget had a strong focus on family violence –with a $1.9 billion package addressing the issue unveiled, as well as a $10.1 billion investment in infrastructure.
"At the heart of this year's budget is a historic and life-changing investment to end family violence," Mr Pallas said.
"Family violence is a national emergency, with one woman killed every week by her former of current partner. We promised to do everything in our power to stop it, and that's what this budget does."
A $448.1 million package will set up 17 support and safety hubs across the state to provide support to family violence survivors, including one in the Barwon region set to be launched later this year.
Five specialist family violence courts will also be set up with $269.4 million, with two in regional areas – Ballarat and Shepparton.
The 2017-2018 Victorian Budget will see a surplus of $1.2 billion.
Health
$7.5 million for planning and design work for Warrnambool Base Hospital, setting the wheels in motion for the completion of an upgrade worth at least $112 million.
Education
South-west schools will share in $3.1 milllion in funding, including Warrnambool East Primary School, Portland South Primary School, Penshurt Primary School and Branxholme-Wallacedale Community School.
Roads
Roads funding will comprise of $53 million for a south-western Victorian roads package, $37.2 million to seal local narrow roads and $10 million for the Henty Highway and the Green Triangle.
Rail
$100 million to upgrade the Warrnambool train line, with a funding source that is a point of contention between the state and federal governments.
Business
Regional tax cut of 25 per cent promises to boost regional Victoria, with the payroll tax rate from 4.85 per cent to 3.65 per cent for business operating mostly in regional Victoria.
Sport
Port Fairy Bowls Club and Warrnambool's Reid Oval will share in $110 million from the community sports infrastructure fund, however, the amounts allocated to each project have not been finalised.
Agriculture
In agriculture, $44.4 million will be invested to protect the state's agriculture sector from biosecurity risks, and $21.5 million to introduce electronic identification technology for livestock.
Other key commitments affecting the south-west
A pool of $500,000 will be available to start planning for the future of sustainable employment and industry in the Glenelg region.
A share of $29 million will fund early works under the Shipwreck Coast Master Plan, however, the amount allocated to the project is yet to be finalised.
The state government will take on responsibility for SES unit operational costs, which has been a point of contention in areas such as Corangamite.
$42.5 million will be made available over four years to fund a study into onshore conventional gas exploration and development.
Some of $5.8 million to increase youth engagement will go to the Youth Affairs Council of Victoria in Warrnambool.
The Victorian Rural Women's Network will be re-established with a $1.7 million boost to promote women's economic participation and professional development.
