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Victoria

HIA welcomes joint govt support to build 66,000 new homes in Victoria

HOUSING Industry Association (HIA) chief executive for industry and policy, Simon Croft said the industry has welcomed the Federal and Victorian Governments’ joint funding agreement to commit nearly $3 billion to support the delivery of more than 66,000 new homes – including 25,000 for first home buyers across the state.

Under the agreement, he said the Albanese Government would provide a $2.5 billion investment – made up of $2 billion in concessional loans and $499 million in grants – “to tackle the infrastructure bottlenecks standing in the way of housing, with the Carroll Government providing a contribution of at least $499 million”. Simon Croft HIA chief executive for industry and policy

“The announcement forms part of the Albanese Government’s commitment to work with states and territories to help deliver up to 100,000 homes for first home buyers, with a focus on unlocking housing supply through targeted enabling infrastructure funding,” Mr Croft said.

He said today’s announcement recognised that increasing housing supply would be critical to improving affordability – and one of the largest impediments to delivery of more housing faster, included boosting funding for ‘key last mile’ trunk infrastructure including roads, sewer and water piping and electricity supply.

“This announcement recognises that the fastest and most effective way to help first home buyers is to unlock more housing supply, and that means removing the infrastructure and planning barriers holding projects back,” Mr Croft said.

“HIA has consistently called for targeted investment that unlocks land, accelerates delivery and supports industry to build at scale, and we welcome the Commonwealth’s focus on supply side reforms and work with State and Territory Governments to make this happen. 

“Builders often tell us that getting this key ‘last mile’ infrastructure is what holds many projects back from being delivered in a more-timely fashion, today’s announcement is a key plank in addressing that."

‘Ready to build’ in Victoria

HIA Victoria deputy executive director, Steven Wojtkiw, said builders across the state were ready to deliver more homes but continued to face constraints that delay projects and increase costs.

“Victorian builders are ready to deliver, but too many projects are slowed by infrastructure constraints and delays outside their control,” Mr Wojtkiw said.

“Ensuring peri-urban and regional growth areas are supported by the funding is a positive step that will help bring forward new housing opportunities across the state, not just in greater Melbourne.

“Any investment that helps unlock land, bring forward essential services and get homes to market sooner will make a real difference for Victorian first home buyers, and ease broader supply constraints,” he said.

“Getting the fundamentals right – land, infrastructure and approvals – is the key to improving housing affordability in Victoria,” Mr Wojtkiw said.

HIA has long advocated for coordinated action across all levels of government to boost housing supply, including planning reform, streamlined approvals, investment in infrastructure and measures to expand the construction workforce, he said.

“This welcome funding sends a clear signal to industry that governments are serious about boosting housing supply, and builders are ready to get on with the job of delivering more homes for Victorians.”

www.hia.com.au

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Melbourne’s shopfront ‘renaissance’ reaches record high

MELBOURNE has recorded its highest shopfront occupancy rate in more than five years, and Melbourne Lord Mayor Nick Reece has labelled it Melbourne’s “retail renaissance”.

The City of Melbourne’s latest Shopfront Vacancy Audit found 85.6% of shopfronts were occupied in April 2026, up from 84.4% a year earlier.

“Metro, Mecca and matcha have fuelled a retail boom across the city and the data proves it – there really is a place for every business in Melbourne,” Cr Reece said. Melbourne iconic shopping spots City of Melbourne image

“We’re seeing long-vacant shopfronts leased and new retail spaces snapped up as soon as they hit the market – clear signs Melbourne's retail renaissance is well underway.”

According to Cr Reece, the number of vacant shopfronts has more than halved since 2021, “showing four straight years of improvement for our local economy”.

High occupancy despite  ‘growing retail market’

The result comes even as dozens of additional shopfronts hit the market this year – with major projects including Melbourne Walk, Collins Arcade, and the Metro Tunnel stations delivering a new generation of retail spaces and driving investment across the city.

As Mecca approaches its first anniversary on Bourke Street, Melbourne continues to attract investment from major retailers – with apparel brand Rodd & Gunn opening a flagship store last year and Japanese retailer MUJI set to open a new store in 2028.

High demand is also giving long-vacant sites a new lease on life, with businesses like Fico in Carlton and Kurabito Sake Shop in North Melbourne taking over shopfronts that had been empty since 2020.

The momentum is being felt right across Melbourne. In the six months to April 2026, 86 additional shopfronts were filled across the CBD, while Southbank recorded its highest-ever occupancy rate of 90.2% – driven by new openings including Coupette at the Hannah Hotel, PLAYit Southgate and Mr Summit Cafe.

Culinary revival in Lygon St

According to the Lord Mayor, Lygon Street’s culinary revival has gone from strength to strength, with the construction rate dropping from 6.1% to 3.9% while occupancy has increased – showing new spaces being filled with eateries like Sangaweech and Garfield Pizzeria.

Occupancy in CBD West rose by more than 2%, driven by new traders around West Side Place, while Docklands recorded 4% growth as Melbourne Quarter continued to attract new businesses.

While the city's overall vacancy rate has risen slightly to 9.5%, this reflected the decrease in shopfronts under construction, City Economy and Business portfolio head, Cr Kevin Louey said.

He said the City of Melbourne continued to support businesses to open and grow through its dedicated Business Concierge service – the largest council-run service of its kind in Australia. Over the past year, the team helped more than 110 businesses open across Melbourne, with 66 more in the pipeline.

“With around 330 shopfronts currently under construction – it’s clear developers, retailers and hospitality businesses see Melbourne as a place to invest, grow and succeed.”

www.melbourne.vic.gov.au

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Vic Chamber warns proposed WFH legislation could derail businesses

THE Victorian Chamber of Commerce and Industry (VCCI) has warned the Victorian Government’s insistence to legislate working from home (WFH) arrangements is being rushed and is poorly timed as businesses continue grappling with the ongoing impacts of the Middle East fuel crisis, rising operating costs and weakening business conditions across the state.

VCCI acting chief executive Amelia Bitsis said the Victorian Government must undertake a full Legislative Impact Assessment before proceeding with any working from home legislation, including detailed modelling of compliance costs, productivity impacts, workforce implications and effects on small businesses. 

“Victorian businesses are already under extraordinary pressure,” Ms Bitsis said. “Fuel costs remain elevated, supply chain disruption continues, operating margins are tightening and confidence remains fragile. The overwhelming message from business right now is not that flexibility is failing – it is that businesses need room to manage through increasingly difficult economic conditions.

The proposed laws would apply from September 1, 2026, with delayed commencement for businesses with fewer than 15 employees until July 2027.

Analysis of state economic data shows Victoria’s recent business investment growth has fallen behind other states on more conventional measures, while business growth is increasingly concentrated among non-employing and low-turnover businesses.

“The Victorian Government has acknowledged that more than a third of workers, including around 60% of professionals, already regularly work from home. That demonstrates businesses are enabling flexibility where it works operationally, commercially and practically.

“This is not a system that requires legislative intervention and in fact that intervention is sending a negative signal to employing businesses, with increasing reports of jobs being sent offshore.

New VCCI business survey data shows the fuel crisis continues to place sustained pressure on Victorian businesses, with nearly half reporting moderate operational disruption and 95% reporting additional costs to their businesses from 10% up to more than 50%.  

The data also shows businesses are already adapting where flexibility works operationally, with growing numbers adjusting delivery models and enabling additional remote work arrangements in response to current economic conditions.

Legislating working from home rights from September risks adding further uncertainty, compliance burden and operational complexity at a time when many businesses are still fighting to remain viable. There are also increasing reports of jobs being sent offshore which is another unintended consequence of this policy push that we have previously voiced our concerns about.

VCCI acting chief executive Ms Bitsis said, “What businesses are deeply concerned about is the prospect of another layer of regulation, uncertainty and potential dispute at a time when many are still dealing with ongoing cost escalation linked to the Middle East fuel crisis and broader economic weakness.

“Our latest survey data shows businesses are continuing to absorb significant increases in freight, fuel and operational costs, while many are now reducing production levels, restructuring service delivery and delaying investment decisions.

“This proposal risks creating a two-tier workforce between industries and occupations that can work remotely and those that simply cannot.

“A hospitality worker, construction worker, manufacturer, healthcare worker, logistics operator or retail employee cannot perform their role from home yet many of those industries are already carrying some of the heaviest economic pressure in the state.

“Victoria cannot continue layering additional workplace obligations onto employers while simultaneously asking businesses to drive investment, employment and economic growth.

“No other Premier in Australia is pursuing this approach – and for good reason.

“At a time when Victoria is already facing serious competitiveness challenges, this risks sending exactly the wrong signal to employers and investors.

“The reality is many Victorian businesses are already making flexibility work sensibly and collaboratively. Good employers understand flexibility helps attract and retain talent.

“But flexibility works best when it can be adapted to the operational realities of individual workplaces – not imposed through a rigid, one-size-fits-all legislative framework.

“What business needs right now is stability, confidence and breathing room, not more compliance obligations.”

www.victorianchamber.com.au

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Vic Govt invests $75m in venture capital funds to grow innovative businesses

THE VICTORIAN Government is investing in venture capital funds with the goal of offering more innovative Victorian companies the support they need to grow.

State Finance and Economic Growth and Jobs Minister, Danny Pearson has announced a $75 million investment in five specialist venture capital funds that target climate-tech, health and life sciences, high-growth technology businesses and female founders.

“We’re backing Victorian innovation to grow our economy and create more secure, high-skill jobs,” Mr Pearson said. “When local ideas succeed, our whole state benefits. 

“By helping startups and emerging businesses get the investment they need, we’re attracting private capital, boosting confidence, and building the industries and jobs of the future.”

Breakthrough Victoria will invest in the funds, including Virescent Ventures Fund II, Australia’s largest and most active dedicated climate technology investor, and SYNthesis BioVentures Fund I, founded in Victoria by oncology expert and professor, Andrew Wilks, with a focus on pioneering biomedical innovation.

Scale Venture Fund I targets the critical gap in venture capital for female founders. Currently only 3% of funding goes to startups led by all-women founders.

Galileo Ventures Fund II, a second-time fund manager, invests in emerging founders at the pre-seed and seed stages, with a focus on high-growth technology sectors.

Breakthrough Victoria will also make a cornerstone investment with a specialist North American health and life sciences fund manager as they launch their first Australian fund.

This builds on the Victorian Labor Government’s existing portfolio of funds, which includes Tin Alley Ventures and seven University Innovation Platform partnerships – supporting intellectual property and research commercialisation.

“Breakthrough Victoria is committed to boosting investment in venture capital funds, aligning with Victoria’s Economic Growth Statement,” Breakthrough Victoria CEO Rod Bristow said.

“This initiative will ensure innovative companies have the capital to grow and drive economic growth for our state.”

The government’s direct investments have already leveraged $1.3 billion in co-investment since it was established and this latest activity will further shape the future of Victoria’s economy.

An independent report by EY-Parthenon found Breakthrough Victoria’s portfolio is on track to generate $5.3 billion in economic impact for Victoria by 2035.

This initiative is one of many outlined in the Labor Government’s Economic Growth Statement, released in December last year.

www.vic.gov.au/economic-growth-statement.

Victorian Govt brings more emergency services under Motorola’s ‘resilient land mobile radio communications’ network

THE Victorian Government has signed a 10-year, $500 million contract with Motorola Solutions to maintain and enhance the Metropolitan Mobile Radio network (MMR) relied upon by the state’s emergency services. As part of the arrangement, Marine, Search & Rescue has also joined the MMR.

The contract with the Department of Justice and Community Safety will extend MMR’s operation until 2035 which, according to a government spokesperson, will provide “secure and trusted radio communications for the state’s public safety agencies, including Victoria Police, Ambulance Victoria, Fire Rescue Victoria, Victoria State Emergency Service and Life Saving Victoria”.

Motorola Solutions’ Melbourne-based operations control centre and field engineering teams will provide 24/7 support and service, helping to keep MMR and a fleet of more than 32,000 radios used on the network optimised and performing at the highest levels of the P25 radio standard.

“First responders face complex and unpredictable challenges that call for safe and resilient communications that are reliable in the harshest conditions, with the ability to connect and collaborate with other emergency services for multi-agency responses,” Motorola Solutions Australia and New Zealand  managing director, Con Balaskas said.

“We’re extremely proud that Motorola Solutions’ MMR network has supported Victoria’s emergency services for 20 years, providing essential communications while they’ve faced some of the most extreme events and disasters in the state’s history,” he said. 

“Now, through new software and broadband innovations, MMR’s interoperable communication will extend to the farthest reaches of our state, from Mildura to Mallacoota, while enabling more agencies to connect to the network.”

Under the contract, Marine, Search & Rescue will join MMR in 2025. Additionally, SmartConnect, a cloud-based service, will expand coverage for users by automatically switching between land mobile radio (LMR) and broadband, wi-fi and satellite networks when users travel outside of radio coverage areas.

Ambulance Victoria’s regional units will also gain statewide coverage and access to productivity-enhancing data applications via 1,600 new APX NEXT all-band smart radios, with an additional 750 APX series multi-band mobile radios to be installed in regional ambulances.

Since its implementation in 2005, MMR has helped Victoria’s public safety agencies respond to major crises, including the 2023 flood crisis and the 2009 Black Saturday bushfires. More than 50.5 million push-to-talk voice calls were made on MMR in the past 12 months alone, reaffirming the continuing high demand and value of the resilient communications it provides.

Motorola Solutions supports 13,000 land mobile radio networks in more than 100 countries around the world. Norway, Portugal, Denmark and Austria are among other governments joining the Victorian Government in renewing their significant investments in LMR communications.

www.motorolasolutions.com

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Victoria’s first all-electric hospital utilises Honeywell automation and energy efficiency systems

NASDAQ-LISTED technology group Honeywell is the building automation provider for the new Melton Hospital, a 274-bed facility that will be Victoria’s first fully electric hospital.

Honeywell will help provide comprehensive management for building automation systems to optimise the hospital’s energy and operational efficiency outcomes while lowering emissions.

Under a 25-year contract, Honeywell will install its building management solutions — including Honeywell Forge Enterprise Performance Management software — to help create a more energy efficient, automated and secure facility.

As Victoria’s first healthcare facility using only electricity as an energy source, the Melton Hospital will help minimise emissions and support the state of Victoria’s progress to achieving net zero by 2050.

The integration of Honeywell Forge will enable condition-based maintenance that helps improve the resiliency of critical systems around the clock, reduce unplanned reactive work and lower energy costs. Through Honeywell Forge’s machine learning capabilities, which continuously study a building’s energy consumption patterns, the hospital will be able to automatically adjust to optimal energy-saving settings without compromising critical air quality. 

Unique approach to hospital efficiency 

“Honeywell’s technologically advanced building automation solutions combined with our decades of experience in total asset management make us uniquely positioned to support the building services for the Melton Hospital both today and over the next 25 years,” Honeywell Building Automation’s Pacific vice president and general manager, Lisa Whitehead said.

“As a partner to the Melton Hospital, we are committed to helping deliver Victoria’s first energy-efficient hospital that provides an optimum indoor environment with a best-in-class design built to address the critical needs of patients.”

Ms Whitehead said Melton Hospital would embed world-class ecologically sustainable development (ESD) technologies to maximise ecological efficiencies “in all elements of the design, construction and operation of the development”.

Honeywell will manage the building in alignment with these efficiency goals, optimising peak energy demand, energy consumption and water consumption costs so that the project remains flexible and adaptable to changing social and climatic conditions.

The new Melton Hospital will have a 24-hour emergency department, ambulatory care, maternity, neonatal, mental health and radiology services, as well as a new education and training hub for doctors and nurses in Melbourne’s western region.

Melton Hospital a public-private partnership 

The hospital is being delivered as a public-private partnership: Western Health is the public operator of all clinical services and the Exemplar Health consortium, through a contract from the Victorian Government, is responsible for the hospital’s financing, design, construction and maintenance for 25 years following the facility’s construction completion.

The Exemplar Health consortium includes Capella Capital as sponsor and investor; Lendlease Infrastructure Investments and Invesis as investors; Lendlease as the builder; and Honeywell and Compass Group as facilities and maintenance management providers.

“This work will help deliver a critical uplift in the capacity of public health services in Melton,” Capella Capital director, Sarah Neaves said.

“As Melbourne’s outer west continues to grow, the Melton Hospital project will allow the hospital to better support its patients, families and staff. We look forward to working closely with the Victorian Government, Western Health and consortium members to deliver this critical piece of health infrastructure.”

Honeywell is experienced in total asset management and public-private partnership projects, with a more than 30-year history working in Australia to support commercial buildings, healthcare and critical infrastructure. Honeywell’s role builds on its track record developing building automation solutions for the healthcare industry and also supports the company’s alignment of its portfolio to three megatrends.

Honeywell’s businesses are aligned with three compelling  megatrends – automation, the future of aviation and energy transition – with projects underpinned by the Honeywell Accelerator operating system and Honeywell Forge IoT platform, which focus on automation and the energy transition.

www.honeywell.com

 

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Scott Veenker appointed Committee for Melbourne chief executive

THE Victorian Chamber and Committee for Melbourne (CfM) has appointed Scott Veenker as the inaugural chief executive of newly merged CfM and Melbourne Chamber of Commerce (MCC).

Scott Veenker was formerly the Melbourne Chamber chief executive and has steered the MCC for the last three years, navigating a post-COVID environment and challenging economic conditions. Mr Veenker has more than 20 years experience in banking and finance. 

Former CfM chief executive Mark Melvin will remain with the Victorian Chamber in a senior capacity and will initially be a key adviser across the wider business, including a focus on the CfM integration. 

Both Mr Veenker and Mr Melvin will report into Victorian Chamber chief executive Paul Guerra.

The CfM sits under the umbrella of the Victorian Chamber, following the June 2024 announcement that MCC and CfM would merge.

 “I’m thrilled to take the Committee for Melbourne into the next exciting era, with an amplified voice,” Mr Veenker said. “We will continue to advocate for the best possible outcomes for business and support members through our extensive membership offering.

“I thank Mark Melvin for his continued contributions to Melbourne’s business community and look forward to working together to serve our members.”

Victorian Chamber of Commerce and Industry chief executive Paul Guerra said, “Scott has a proven track record of understanding the needs of Melbourne’s business community. His leadership will take the Committee for Melbourne to new heights, influencing local, state and federal governments to affect policy and exchange ideas to lead Victorian business into the future.

“Memberships now represent better value than ever as the merger combines the expertise, strengths and resources of these two proud organisations.

“I’m also delighted that Mark Melvin will continue with the chamber, and his wealth of experience and leadership will help us further the great work of the chamber. I expect both Scott and Mark to be brilliant contributors into the future.”

www.melbourne.org.au

www.victorianchamber.com.au

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