State debt climbs as grants flow
As the cost of living continues to squeeze households across Victoria, the Allan Labor Government has unveiled a new $400,000 grants package—exclusively for LGBTQI+ organisations.
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Announced this week by Minister for Equality Vicki Ward, the 2024–25 Organisational Development Grants are now open for applications, offering up to $40,000 per group to “strengthen inclusive services” and develop volunteer programs, podcasts, and business plans.
But the move has raised eyebrows among some Victorians who question whether niche community groups should be prioritised during a time of soaring grocery bills, rental hikes, and hospital delays.
Ballooning State Debt
Compounding these concerns is the state’s escalating debt. Under the Allan Labor Government, Victoria’s net debt has surged from $22.3 billion in 2014-15 to a projected $155.2 billion by June 2025, with forecasts indicating it will reach $187.3 billion by June 2028.
As a proportion of the state’s economy, net debt is expected to be 24.2% of Gross State Product (GSP) in June 2025, peaking at 25.2% in 2026-27, before a slight decline to 25.0% by June 2028.
Funding Amid Fiscal Challenges
Previous recipients of similar grants include:
• Trans Space, which used the funds to register as a healthcare charity.
• Many Coloured Sky, supporting LGBTQI+ refugees and asylum seekers.
• Our Point 3, which created podcast and job interview training for international students.
• Melbourne Bisexual Network, which used funding to merge with another group to form Bi+ Pride Victoria.
Since 2016, more than 110 organisations have been funded through the scheme, as part of the state’s 10-year LGBTIQA+ strategy. Supporters of the grants say the funding is essential for marginalised communities to build capacity and combat discrimination.
However, critics argue the government has a history of backing controversial initiatives with little accountability. The now-infamous Safe Schools program—also funded in Victoria after federal backlash—sparked years of debate over whether public schools were the right place for sexuality and gender education.
A 2018 Victorian Auditor-General’s report also raised concerns that some small grant programs lacked transparency and evaluation, meaning taxpayers were often in the dark about what their money was achieving.
Despite this, Minister Ward doubled down on Labor’s stance, saying: “Equality is not negotiable in Victoria… I encourage all eligible groups big and small to apply.” Applications close on 14 April.
