An ongoing push for the State Government to restore the Growing Suburbs Fund which supported tens of millions of dollars in infrastructure projects in Yarra Ranges and Cardinia is continuing.
The Outer Melbourne Councils group, consisting of nine member councils of which Yarra Ranges and Cardinia are two, is leading the push to reinstate the fund.
An OMC spokesperson said it’s incredibly disappointing that the fund was axed.
“The Growing Suburbs Fund was one of the only programs supporting fast-growing outer suburbs, and its removal has widened an already concerning infrastructure gap,” they said.
“The Growing Suburbs Fund was critical – it delivered hundreds of millions in State investment and helped bring forward projects that would otherwise have taken much longer to deliver.
“Outer suburban councils often fall between metropolitan and regional criteria, which makes securing funding harder, the Growing Suburbs Fund was one of the few programs designed to recognise those unique needs.”
The axing of the fund for some of the Victoria’s outer metropolitan regions comes despite the Department of Transport and Planning’s own Victoria in Future 2023 report forecasting that outer metropolitan areas will bear the brunt of most of the state’s population growth, with all of the highest projections coming from OMC member councils.
A Department of Transport and Planning spokesperson said through the Growing Suburbs Fund, they have invested $445 million into 370 projects valued at over $1.44 billion across Melbourne’s growing outer suburbs to deliver the schools, ambulance stations, parks, and public transport these communities need.
“We also want to build more homes close to great public transport, while also delivering funding for the local parks, roads, schools and facilities that keep these communities great places to live,” they said.
51 projects from the Growing Suburbs Fund are still being delivered by growth area councils while the state government has is also investing in a number of growth area councils through the Growth Areas Infrastructure Contribution (which covers the LGAs of Cardinia, Casey, Hume, Melton, Mitchell, Whittlesea and Wyndham) and the Tram and Train Zone Activity Centre Program (of which the nearest activity centre to the Outer East is Ringwood).
The OMC spokesperson said it is very concerning to lose the funding despite forecasted population growth in outer Melbourne.
“These areas are already experiencing the strongest population growth in Victoria, yet the fund designed to support that growth has been stripped away from the communities who need it,” they said.
“Investment in community and social infrastructure is essential for fast-growing regions – without it, population growth simply creates congestion, service shortages and declined liveability.
“Investing early saves communities and governments from far higher social and financial costs down the track.”
By 2051, the government expects the Tram and Train Zone Activity Centre Program to provide more than $4 billion worth of infrastructure including public transport, parks, upgraded roads, expanded schools, and facilities in the designated areas.
Yarra Ranges Mayor Richard Higgins said they’re joining OMC in calling for the restoration of the Growing Suburbs Fund by the State Government, to help continue delivering high-quality infrastructure for Yarra Ranges community members.
“Since the inception of the fund in the 2015-16, Council applied for and received more than $31 million in grants, delivering projects such as the Belgrave Community Hub, the Queens Park Playspace in Healesville, the first stages of the Yarra Valley Trail, ngurrak barring (formerly RidgeWalk) and the Warburton Bike Park, the Kimberley Reserve Community Sporting Pavilion and the Upwey Skate Park, among many others,” he said.
“In recent years, the funding available through the Growing Suburbs Fund dropped significantly – down to $10 million available for all interface councils in 2023-24, and $5 million in the 2024-25 budget.
“In 2024, Yarra Ranges and two other Councils were dropped from being able to apply for grant funding and in the 2025-2026 Victorian Budget no allocation was made for the Fund, ceasing the program.”
The Victoria in Future report forecast for the Yarra Ranges to grow in population by only 12 per cent, the fifth-least of any LGA in the state, from 157,420 people to 176,270, despite originally being included in the Growing Suburbs Fund.
Cr Higgins said they hope the State Government reverses their cuts to the Growing Suburbs Fund for outer Melbourne councils, including Yarra Ranges.
“We believe that a funding stream such as the Growing Suburbs Fund is crucial to help deliver major infrastructure projects in interface regions like Yarra Ranges where we provide facilities and services across a significant area and many townships,” he said.
“Without access to grants like the fund, significant projects will take far longer to fund or may never come to fruition.”
The Victoria in Future report forecast for Cardinia to grow in population by 2.7 per cent per year between 2021 and 2036, the fifth-fastest rate in the state for a total rise of 49 per cent from 119,520 to 178,610 people.
Cardinia Shire Council Mayor Brett Owen said the Growing Suburbs Fund has played a critical role in allowing Cardinia Shire Council to invest in essential infrastructure for the region’s rapid population growth.
“More recently the grant has provided funding to upgrade or establish Jim Parkes Reserve, Officer District Park, Garfield North Community Centre, the Koo Wee Rup Bowls and Community Hub and is supporting the ongoing redevelopment of the Upper Beaconsfield Pavilion,” he said.
“Growth area councils face unique and ongoing infrastructure pressures, and the Growing Suburbs Fund has been vital in helping us keep pace with community need.”
“Through our Advocacy Agenda 2025–29, Council is calling for a new dedicated growth area grant to replace the Growing Suburbs Fund, a priority that is also shared by Outer Melbourne Councils. We value the strong partnership built through this program and encourage the State Government to work with growth councils on a sustainable long-term funding solution.”
The State Budget will be handed down in May 2026.
