$976 million to fix potholes and upgrade road surfaces across regional Victoria

As part of the Victorian Budget 2025/26, officially handed down last night, $976 million has been committed to fix potholes and upgrade road surfaces across the state.

It’s part of a $1.2 billion road blitz that’s been promised to help tackle congestion, while improving safety and connectivity.

Road maintenance funding will go towards:

• The rebuild, repair and resurfacing of arterial roads across the state, including pothole repair

• Maintenance of vital transport infrastructure such as bridges and traffic lights
• Emergency road works in response to callouts form the community
• Mowing, slashing and spraying of grass and weeds along roadsides
• The repair or replacement of thousands of signs

The $976 million commitment is part of plans to help fix Victoria’s crumbling road network.

Adding to this, $81 million will towards regional projects, including:

• Rehabilitation of the San Remo Bridge connecting Phillip Island to the mainland
• Strengthening the Mt Emu Creek Bridge on the Princes Highway West in Terang to accommodate high productivity freight vehicles
• Safety upgrades on the Princes Highway East in Lakes Entrance

The state government says the latest announcements follow a record investment into fixing roads last year, where 70 per cent of the funding went towards projects in regional Victoria. The Australian Government says that through that investment, 183,669 on-road jobs were completed, including major rehabilitation projects, resurfacing projects and pothole repairs. And signs – there were lots of new signs, with 13,000 signs replaced and 11,000 signs repaired.

The Victorian Transport Association (VTA) has welcomed the Budget announcement.

“This investment is a welcome and necessary step toward ensuring Victoria’s road freight network is safe, efficient, and resilient,” Anderson said.

“Freight operators rely on dependable road conditions to meet delivery schedules, reduce vehicle wear and tear, and maintain competitive supply chains. Every dollar spent on road maintenance is an investment in productivity and safety.”

The VTA also acknowledged the government’s continued focus on regional Victoria.

“Targeted upgrades like those announced on the San Remo Bridge are vital for regional connectivity and economic activity,” Anderson added.

“We commend the government for listening to the needs of regional communities and freight operators, and for continuing to prioritise infrastructure that keeps Victoria moving.”

Ahead of State Budget night last night, Shadow Minister for Roads and Road Safety and Member for Gippsland South, Danny O’Brien, said he hoped to see progress made to fix roads in Gippsland.

“Here in Gippsland South, our roads are crumbling,” he said. “Gippslanders are paying more than ever before and yet have very little to show for it.”

According to O’Brien, it’s obvious to anyone who has travelled around Gippsland that more investment is needed to maintain and upgrade the region’s roads.

“The condition of our roads is more than just embarrassing, it is dangerous.”

Among the key projects O’Brien would like to see funding committed to is Stage 2 of the Leongatha heavy vehicle bypass.

Member for Shepparton, Kim O’Keeffe, echoed these calls for his region. “We have a huge volume of transport, with a quarter of the state’s trucks registered in the Shepparton region, all of which depend on a safe and efficient road network,” O’Keeffe added.

“Damage to these trucks due to the appalling condition of the roads is costing companies thousands of dollars in repairs every month and over just the past three years, claims for cars damaged by road conditions have increased by over 400 per cent.”