A cut in funding to Victoria’s multicultural affairs budget has prompted sharp political debate, with questions raised over whether diverse communities are being short-changed to patch up state finances.
The allocation for multicultural affairs programs and policy has dropped from $60.5 million last year to $48.2 million in the 2025–26 Victorian Budget—a 25% reduction that brings spending to its lowest level in nearly a decade. The move has sparked a strong reaction from Shadow Minister for Multicultural Affairs, Evan Mulholland, who questioned the Treasurer in Parliament, asking whether multicultural Victorians were targeted because “they didn’t matter.”
Mulholland, who represents the Northern Metropolitan Region—home to many of Melbourne’s diverse migrant communities—accused the government of sidelining multicultural needs in favour of balancing the books. “The Treasurer is looking everywhere for dollars to help pay off ten years of Labor debt, and it is multicultural communities who will suffer,” he said.
The state’s projected net debt is on track to reach $194 billion by 2029. Treasurer Jaclyn Symes defended the budget decisions, pointing to a forecasted $600 million surplus and insisting that the government is seeking more efficient ways to deliver services through coordination across departments. She said the reduced line item for multicultural affairs did not necessarily mean programs would be abandoned, and suggested the funding model may have changed to reflect inter-departmental collaboration.
The budget includes $1 billion directed towards broader community support, including multicultural groups. Among these, $7.6 million has been earmarked for the Migrant Workers Centre, $3.6 million for new migrant and refugee support, and over $2 million for multicultural seniors. Education remains a key area, with $57 million committed over two years to English as an Additional Language programs.
Reactions from community organisations have been mixed. The Ethnic Communities Council of Victoria welcomed continued funding for longstanding programs but acknowledged that cuts in the central budget line could be viewed with concern. Meanwhile, the Centre for Multicultural Youth said the budget fell short on targeted responses to pressing issues such as racism, youth homelessness, and migrant mental health.
The government’s approach seems to rest on an assumption that multicultural support can be absorbed into mainstream programs without standalone funding necessarily increasing year-on-year. Critics argue this risks diluting focus and accountability. Others note that rising costs of living, housing stress, and post-pandemic recovery continue to place unique pressure on migrant communities, warranting greater—not reduced—investment.
Mulholland, whose Italian grandparents arrived in Australia in the 1950s, has positioned himself as a strong advocate for multicultural representation within policy frameworks. He has repeatedly called for multicultural affairs to be more than an afterthought in budget planning, warning that consistent underfunding sends a message of disregard.
The Treasurer has maintained that broader social programs benefit all Victorians, including multicultural populations, and that targeted funding has been preserved where necessary. However, without clear breakdowns of which programs remain and which have been scaled back, some community leaders have called for greater transparency.
The debate comes as Victoria continues to position itself as one of Australia’s most diverse states, home to more than 200 languages and over 30% of its population born overseas. As budget scrutiny intensifies, the test for the government will be whether its policy execution matches the promise of inclusion.
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