The successor to Victorian startup support agency LaunchVic barely earned a mention in the state’s 2026-27 budget, despite plans for the organisation to debut in the back half of this year.
Five months after the state government confirmed LaunchVic will merge with state-run investment fund Breakthrough Victoria, Tuesday’s budget papers reference the new organisation only as a footnote.
Tucked away in a statement of finances, a list of government-controlled entities refers to ‘New Co’, under the watch of the Department of Jobs, Skills, Industry and Regions.
‘New Co’ is the interim name for the body replacing LaunchVic and Breakthrough Victoria, according to the footnote.
“The sector classification for New Co has yet to be determined by the [Australian Bureau of Statistics] and hence, for the purposes of the 2026‑27 Budget, New Co has been included within the public financial corporations sector pending final classification,” it said.
The budget papers do not detail any specific funding commitments for the new organisation.
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LaunchVic itself was granted $37.2 million in funding over four years in the 2024-25 state budget.
But the Victorian government is expected to reduce its overall funding to merger partner Breakthrough Victoria, as it seeks to build a lower-cost startup support capacity.
The organisation will go live in the second half of 2026, according to the budget papers, which is consistent with a timeline put forward by LaunchVic itself last month.
At the time, LaunchVic said the successor organisation — designed to “build the capability of our innovative people and companies and grow the capital available to innovators” — will launch with a chair, board, and CEO in place.
Until then, LaunchVic and Breakthrough Victoria continue to operate as usual.
AI a focus
Elsewhere, the Victorian budget commits $14 million for an AI investment package, including $8.2 million for an AI career conversion program.
This initiative will “protect jobs in industries impacted by AI and help workers transition into AI roles,” according to budget documents.
Some $3.3 million will go towards skill-building partership programs “to design and pilot new training approaches in priority areas, including AI, leadership and technology adoption”.
And the state government will commit $30 million towards a Digital, AI and Technology TAFE Centre of Excellence at at Chisholm Institute’s campus in Frankston.
Victoria’s economic growth “will be supported by the rapid rise of cutting-edge technologies creating new solutions to old ways of working,” said Treasurer Jaclyn Symes, in a statement accompanying the budget papers.
“That’s why we’re future-proofing Victoria by investing in the industries of tomorrow and skilling up workers for the right jobs.”
You can find a wrap of all the Victorian 2026-27 budget announcements on SmartCompany here .
