Victorian 2025 State Budget delivers some wins for Aboriginal communities

May 20, 2025

VACCHO welcomes some funding wins for Victorian Aboriginal communities in today’s budget announcement but acknowledges there is more work to do.

VACCHO is pleased to see a $12.5 million commitment to Dandenong and District Aborigines Co-Operative (DDACL) which will enable the reopening of all its services at a new location, under one roof. DDACL was forced to close one of its buildings in Dandenong in August 2024, after it was condemned due to asbestos.

VACCHO CEO Dr Jill Gallagher AO said this investment is a long-overdue lifeline and a strong step forward for DDACL after three long years of tireless advocacy.

“Our ultimate goal remains a fit-for-purpose, permanent home for DDACL and one that meets the needs of a growing Community and the vital services it depends on. Today’s announcement is a great win for DDACL and the south-east Aboriginal community it works for, but it provides only interim relief”.

Dr Gallagher says that while the commitment for DDACL is certainly welcomed, there is still a long way to go in improving ACCO infrastructure across the state.

“Infrastructure Victoria has recommended that $100-150 million is still needed to meet immediate infrastructure needs of Victorian health and wellbeing ACCOs and an extra $30 million for urgent infrastructure maintenance. Instead, outside of DDACL, only $5 million for infrastructure has been delivered for the whole Aboriginal sector,” Dr Gallagher explained.

The Victorian Government has also channelled National Skills Agreement funding to Aboriginal Community Controlled Registered Training Organisations (ACC-RTOs).

This marks a fundamental milestone in recognising the role of ACC-RTOs in delivering Community-based education and developing the pathways of critically needed Aboriginal workforces.

VACCHO is also pleased that the Budget includes $16 million to support Aboriginal women on the journey into motherhood, recognising the importance of supporting First Nations families at the earliest stages of life.

Despite some wins, the Budget falls short in several key areas, in particular the failure to allocate funding to implement key recommendations from the Royal Commission into Victoria’s Mental Health System, despite the well-documented mental health crisis in Aboriginal communities.

Dr Gallager says she is deeply disappointed that no commitment has been made to fund the urgent mental health services for Aboriginal children and their families, as well as two on-Country Healing Centres.

“Despite extensive Community and stakeholder engagement to co-design these initiatives, the funding to progress from design to action has not been realised.”

“The Healing Centres and The Nest are both Aboriginal self-determined responses to recommendation 33.1 and 33.4 from The Royal Commission into Victoria’s Mental Health System, to address the unmet needs of Aboriginal children and their families.”

“The Balit Durn Durn Centre will continue to work with the Victorian Government to ensure they fulfill their obligation to realise the intent of the Royal Commission’s recommendations and fund urgent mental health and healing services for Aboriginal people in Victoria,” Dr Gallagher said.

Additionally, there was also no direct funding to deliver an Aboriginal-led model of care in custody raising serious concerns given the pressing need for culturally safe health services in prison settings.

An Aboriginal-led model of care has been a recommendation to Government since the Royal Commission into Aboriginal Deaths in Custody and numerous other reports, investigations and reviews in the almost 40 years since then.

Dr Gallagher said that VACCHO will continue to push for sustainable, long-term investment that respects self-determination and meets Community needs.

Media enquiries

For further media enquiries please email communications@vaccho.org.au or contact our media unit on (03) 9411 9411.

Background 

VACCHO is the peak body for Aboriginal and Torres Strait Islander health and wellbeing in Victoria – the only one of its kind – with 34 Aboriginal Community Controlled Organisations as Members. VACCHO Members support over 65,000 Aboriginal and Torres Strait Islander people in Victoria, and combined are the largest employers of Aboriginal people in the state.