This post is reposted from https://www.linkedin.com/pulse/melbournes-budget-needs-future-ready-plan-michael-smith-5pwuc/
Michael Smith was a candidate at the recent City of Melbourne elections and comments here on the draft 2025/26 budget for the City.
“The City of Melbourne is about to hand down one of its most consequential budgets in years—yet it risks missing the moment entirely. With the Metro Tunnel set to open and state-backed free public transport for students and weekend travel for seniors scheduled to roll out next year, we are standing at the threshold of a transport revolution. These changes create an unprecedented opportunity to reshape how we move, live and connect in our city.
But instead of seizing this moment, the council’s draft 2025–26 budget reflects a failure of imagination. It is not a budget of bold reform but one of inaction and complacency. It doubles down on car-centric spending and misdirects precious resources toward ineffective security theatre. At a time when the city needs visionary leadership, this budget settles for business as usual.
As someone who lives and works in this city—and who has spent decades thinking about how our built environment shapes lives—I believe a more progressive, city-shaping alternative is not only possible, but necessary. A practical reallocation of $25.95 million within existing council revenue demonstrates how this can be achieved. It is fully funded and delivers the same modest operating surplus as the council’s draft. Every dollar spent is matched by a dollar saved or raised.
At the core of this approach is a 15% increase in parking fees and fines—raising more than $10 million. It’s not a punishment. It’s a pivot. Parking fees in the city have remained largely unchanged for years, even as the demand for curbside space and the cost of inaction have grown. As public transport becomes cheaper, faster, and more convenient, the logic of subsidising car storage in the city collapses. If we’re serious about encouraging a shift from private vehicles to public and active transport, we need to align our pricing signals accordingly.
This revenue should be directed to what actually builds a better city: protected bike infrastructure, affordable housing, urban greening, food security, and local culture.
The housing crisis can be addressed head-on, with $10 million reallocated to housing equity. That includes $5 million in seed funding for a second Make Room-style facility—providing 30–50 studio apartments with wraparound support services. Just like the first Make Room project, this would require project partners, including potential contributions from state and federal governments and philanthropic organisations. It also includes $4 million for a Housing Equity Fund to support tenancy programs and future developments. These initiatives don’t just reflect best practice—they align with the values of a Prime Minister who himself grew up in public housing, and whose re-election provides the political alignment for real intergovernmental collaboration.
A $6 million commitment to protected bike lanes along routes already identified by council is also included. These projects are not new—they’re part of the city’s endorsed transport plans—but they have yet to be delivered. They will not only improve safety—they will expand access. Cycling infrastructure must be more than symbolic. It must be part of the city’s serious transport mix.
Meanwhile, $5.1 million should be allocated to triple Melbourne’s tree planting efforts—particularly in heat-vulnerable areas—and $2.35 million to tactical urbanism. These are not cosmetic tweaks. They are proven, scalable interventions that make our streets cooler, safer, and more people-friendly.
In contrast, the council is currently funding the Community Safety Officers program. These roles are often framed as a visible presence on the streets, but they are neither trained police nor qualified social workers. They occupy a grey area—offering the impression of authority without the powers, oversight, or expertise that genuine public safety requires.
The program should be scrapped entirely, saving $2 million, along with the cancellation of $3 million earmarked for expanded private security and CCTV. The Council should be able to have a strong working relationship with Victoria Police—one that helps deliver safety for Melbourne—without providing a bad imitation and wasting precious resources on ineffective programs. Councils should focus on addressing the root causes of insecurity, not duplicating services they are neither equipped nor mandated to deliver.
Because real safety isn’t about uniforms or optics. Real safety is about not being knocked off your bike on the way to work. It’s about having a roof over your head and knowing where your next meal is coming from. That’s why this budget reallocation includes $1.5 million to secure the continuation of food security programs that proved critical during the pandemic. It also funds artist-in-residence programs in public libraries, neighbourhood centres, and public housing. These aren’t luxuries. They’re the cultural glue that holds communities together.
None of these proposals are extravagant. Every dollar is accounted for. Every project serves a purpose. The budget is balanced—not just financially, but morally.
The State of Victoria has spent billions building the Metro Tunnel. The transport network has been redesigned to move more people, more efficiently, and more equitably. These investments are the hard infrastructure of a better city. But now we need the soft infrastructure to match—budgets that reflect values, leadership that reflects vision.
This is not the time for Melbourne to hedge its bets or hand back some loose change. With the right priorities, we can prepare for a changing climate, make our streets safer without resorting to hired uniforms, and house our neighbours instead of surveilling them. We can shift toward public and active transport, not by force, but by design.
Melbourne stands at a critical juncture. A strategic, forward-thinking budget could deliver lasting dividends: a city that is safer, more resilient, climate-ready, and more equitable. What is needed now is not hesitation, but ambition—and a council willing to match this moment with vision and resolve.
Michael Smith is an architect and director of architecture practice Andever.
Future ready plan for Melbourne City Council Budget 2025–26
Total Funds Reallocated: $25.95 million
Funding Sources: Revenue Increases and Savings
- $8.35M: Increase parking fees by 15% (from $55.67M to $64.02M)
- $2.30M: Increase parking fines by 15% (vs 8.8% currently budgeted)
- $10.3M: Eliminate the general rate rebate
- $3.0M: Cancel new security guards and CCTV expansion (retain lighting upgrades)
- $2.0M: Scrap the Community Safety Officers program entirely
Future ready spending
1. Homelessness and Housing Equity – $10.0M
- $5.0M: Establish seed funding for a second Make Room-style facility with 30–50 studio apartments and wraparound services. This will require project partners potentially including state and federal governments and/ or private philanthropic funding.
- $4.0M: Launch a Housing Equity Fund for tenancy support, homelessness prevention, and future development of supportive housing.
- $1.0M: Programs for youth, LGBTIQ+, and First Nations homelessness prevention.
2. Climate and Environmental Action – $7.45M
- $5.1M: Triple the city’s urban forest planting program to 9,000 trees, prioritizing heat-vulnerable areas.
- $2.35M: Tactical urbanism initiatives including street reactivation, temporary pedestrian zones, parklets, and neighborhood placemaking.
3. Protected Bike Infrastructure – $6.0M
- Entire allocation directed to constructing protected bike lanes along routes already identified in the city’s active transport and infrastructure plans.
- Includes construction, signal upgrades, intersection redesigns, and bike-priority infrastructure.
4. Social Equity and Community Services – $1.5M
- $1.5M: Secure, permanent funding for food security programs.
5. Arts and Culture Initiatives – $1.0M
- Support grassroots cultural projects.
- Fund artist-in-residence programs at: Federation Square, Boyd Centre, Narrm Ngarrgu Library, North Melbourne Library, Carlton public housing, and North Melbourne public housing.