THE Victorian Government’s 2026/27 budget includes a notable investment towards renewable energy but limited support for infrastructure and development across the peninsula.
The budget, which was delivered on 5 May by Treasurer Jaclyn Symes, outlines key funding priorities for Victoria. Among them is a commitment to progressing activities for the Victorian Renewable Energy Terminal at the Port of Hastings.
The budget has allocated $124.5m towards the terminal, which includes progressing the Environmental Effects Statement. The terminal is expected to play a key role in Victoria’s transition to renewable energy and will facilitate and enable offshore wind development, particularly in Gippsland.
Josh Sinclair, CEO of Committee for Frankston and Mornington Peninsula, said the terminal is a critical component to the government delivering more renewable energy.
“It will provide significant uplift to Hastings and Western Port townships, and drive economic growth in clean, future-led industries across the Mornington Peninsula,” said Sinclair.
The committee has been advocating strongly for the terminal and the benefits it can deliver in jobs since 2023. It’s progression is seen as a win for the energy sector and local stakeholders. Local members Paul Mercurio and Tom McIntosh have also expressed their support for the project.
Despite the investment in renewable energy, the peninsula has been left out of multiple other areas in the new budget.
The government’s “bus bonanza”, which includes nearly $100m towards expanded routes and extended hours, fails to include any routes on the peninsula (Peninsula misses out in budget bus funding announcement, The News 6/5/26).
The budget also includes $102.6m invested towards vital road projects across the state, however, no roads across Frankston City or Mornington Peninsula Shire are included.
CFMP’s Strategic Plan 2030 identifies roads and intersections across the region which would benefit from upgrades. CFMP members are calling for more funding to help make the roads safer and ease congestion.
There is also frustration over the lack of funding for the redevelopment of Rosebud Hospital. The government has committed $300m to upgrades at Dandenong Hospital but despite community advocacy and media coverage, no funding has been allocated towards Rosebud.
While the new $1.1b Peninsula University Hospital provides a major health hub for the south-east region, it doesn’t address challenges for residents on the southern peninsula, whose closest hospital is Rosebud.
CFMP is calling on the government to match the Victorian Opposition’s $340m investment to “completely rebuild” Rosebud Hospital.
Beyond health, the budget also does not contain any concessions to payroll tax or land tax obligations for peninsula residents.
While the investment in renewable energy marks a significant step forward for the region’s economic growth, the lack of funding in other areas has reinforced concerns that the peninsula is being overlooked in key areas of state investment.
First published in the Mornington News – 12 May 2026
