In our operating environment, challenges and opportunities shape the department’s planning, implementation and delivery of our services and system reform.
The economy
In 2026, global economic conditions are volatile due to wars in Europe and the Middle East. High energy prices, inflation, and trade uncertainties are having local and global impacts. Communities and organisations face rising costs for goods, services and construction.
In Victoria, the economy is expected to grow gradually. The government remains committed to investing in early childhood and school education.
To address rising costs, the department will continue to seek efficiencies in how it delivers its infrastructure programs and high-quality services. We will also continue to give cost-of-living relief to families through various education and early learning programs.
Digital security, transformation and disruption
Technology use in schools, early learning centres and homes continues to change and evolve, including through the national ban on access to social media for children under 16. Understanding how educators can use Artificial Intelligence (AI) to assist teaching and learning and reduce administrative workloads remains a work-in-progress. We have an initial AI strategy to support the existing Generative Artificial Intelligence policy for schools. This sets out the requirements and advice for using AI tools in a safe and responsible way and complements the Australian Framework for Generative Artificial Intelligence in Schools.
Information security and privacy
Information security and privacy risks continue to increase. Major data breaches across many sectors have highlighted the importance of continuing to protect the personal information of children, families, and educators. Protecting sensitive information and ensuring children’s online safety remain critical responsibilities for the department, schools and early childhood services.
Quantum computing is an emerging technology that will dramatically increase computer processing speeds, allowing complex problems to be solved quickly. Advances in quantum computing and AI could increase the sophistication of cyber threats and reduce the effectiveness of cyber security controls.
We are strengthening our ability to prevent, detect and respond to cyber security and privacy risks. We are doing this through robust controls, improved monitoring and incident response processes, and secure technology platforms that support schools and early learning centres. We also ensure that third-party providers meet the same high standards for security, privacy and child safety.
Self-determination
The Victorian Government is committed to Truth, Treaty, and self-determination. Treaty is about acknowledging the past and making practical changes to achieve better outcomes for First Nations people in Victoria and close the gap.
On average, First Nations students achieve lower National Assessment Program – Literacy and Numeracy (NAPLAN) results, report lower connectedness with school and attend school less regularly than their non-First Nations peers. Cultural safety and access to targeted supports are critical to ensure First Nations learners achieve their potential, succeed in life and feel strong in their cultural identity.
We are prioritising self-determination in education to improve learning and wellbeing for First Nations learners. We will continue to work with First Nations people and communities. We will build on our successes to realise the ambition of Marrung: Aboriginal Education Plan 2016–2026 and the objectives of Dhelk Wukang 2022–2026: Aboriginal Inclusion Plan. We are developing a new First Nations education plan, informed by the evaluation of Marrung.
Workforce availability and capability
Significant growth is projected in early childhood and school enrolments. This means we will need more teachers, educators and staff. By 2030, Victoria will need around 120,000 teachers across early childhood education, primary school and secondary school settings.
We have implemented initiatives to attract teachers to Victorian government schools. These are having a positive impact on workforce supply. We have also invested in school staff retention by reducing administrative workload and improving career development and progression.
The department will continue to implement targeted initiatives to support Victorian government schools facing workforce challenges. This includes those in rural and regional areas and Melbourne’s urban growth corridors, as well as in specialist schools.
The Best Start, Best Life reforms are significantly increasing the number of early childhood professionals across the state. The reforms are also reducing barriers to work for women and, as such, supporting a higher proportion of Victorians to be in the workforce. We are implementing a comprehensive strategy to attract and retain this workforce, in partnership with the early childhood sector. We will ensure that all people involved in the provision of early childhood education and care services have the appropriate training and support to maximise child safety.
Population and demographic change
Our state is expected to continue to grow, with Victoria’s population projected to reach 10.3 million by 2051. Most of the growth will be in the inner and outer growth areas of metropolitan Melbourne. In regional Victoria, the strongest growth is expected in Greater Geelong and Ballarat.
Victoria’s Housing Statement and Plan for Victoria seek to fast-track and concentrate housing development in priority precincts to accommodate the growing population. This creates a potential demand for more schools and expansion of existing schools, new and expanded kindergartens and early learning centres, and more staff.
Societal change and community expectations
Global and local events can challenge social cohesion in communities. This affects early learning and education settings across Victoria.
Reform to the National Disability Insurance Scheme, including the introduction of Thriving Kids, will change how some children and families access supports. This will affect engagement with mainstream and specialist systems, including education.
Changes in family habits and norms since the COVID-19 pandemic have contributed to more student absences, as parents and carers continue to follow health advice to keep children with symptoms of illness at home. We know that regular absences are often the result of an underlying problem. Issues such as poor mental health and cost of living can affect the ability of families to send their children to school. We are delivering a range of initiatives to help overcome these barriers to learning, including student mental health and positive behaviour supports, as well as school breakfast clubs.
Keeping children engaged with learning and connected to trusted adults and positive peer networks increases their sense of belonging. This reduces the risk of poorer educational outcomes and vulnerability to involvement in crime and antisocial behaviour. Alongside local and targeted efforts to improve attendance and engagement, community expectations are evolving. Schools and early learning centres are seen as ideal places for families to access inclusion and wellbeing supports for their children.
The department continues to provide universal and targeted supports for multicultural and multifaith communities.
In 2025, the department introduced a Preventing and Addressing Racism in Schools policy that is being implemented in all Victorian government schools.
Climate change
Victoria’s climate is changing. This means we will continue to experience rising temperatures and more frequent and intense extreme weather events. These present risks to our infrastructure, service delivery and people.
Our experience with extreme weather events has improved our ability to minimise disruption to learning, support staff, children and students, and recover from these events. We will continue to ensure our infrastructure can withstand climate impacts and protect our people from the effects of climate extremes.
The department and all schools and early childhood education settings play a role in achieving Victoria’s target of net zero emissions by 2045. This includes improving energy efficiency and transitioning to renewable energy sources.
We continue to support Victoria’s commitment to building a clean economy workforce. We are strengthening clean energy career pathways. This includes providing vocational explorer and Vocational Education and Training (VET) taster experiences in the clean economy and investing in clean energy equipment and programs in Tech Schools.
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