The Victorian Government will establish a $1 million community grants program for Melbourne’s inner west, using money collected from truck-ban penalties to fund projects aimed at improving neighbourhood amenity and the local environment.
Ports and Freight Minister Melissa Horne has announced the Better Freight Outcomes Fund, which is expected to open in 2027 and support small and medium-sized community-led projects in areas affected by heavy vehicle movements.
The fund was established under legislation passed in 2019 alongside the West Gate Tunnel’s truck-ban framework. Proceeds from fines and penalties issued to heavy vehicle operators who breach no-truck zones are directed into the fund for community projects.
The Department of Transport and Planning says around $1 million is expected to be available when the grants program begins next year.
Residents and community groups are now being asked to help shape how the money should be spent, with a public survey open until 11.59 pm on Sunday, 1 November 2026.
The consultation will ask residents about their priorities, the types of projects they believe would deliver the greatest local benefit and how funding should be assessed and allocated.
The inner west has long carried a substantial share of Melbourne’s freight traffic because of its proximity to the Port of Melbourne, industrial precincts and major logistics routes.
When the West Gate Tunnel opened in December 2025, permanent no-truck zones were introduced on six residential roads — Francis Street and Somerville Road in Yarraville, Buckley Street and Moore Street in Footscray, Blackshaws Road in Altona North and Hudsons Road in Spotswood.
A night and weekend truck restriction also applies on Williamstown Road.
The government says the tunnel is designed to take thousands of heavy vehicles away from local streets by providing a direct freight route between Melbourne’s west, the city and the port.
Transport Victoria estimated when the tunnel opened that about 9,000 trucks a day would be removed from local roads.
Cameras monitor the no-truck zones around the clock, with heavy vehicles generally required to use alternative freight routes unless they qualify for an exemption.
Horne said the new community fund would ensure money raised through breaches was directed back into neighbourhoods dealing with the impacts of freight movements.
“Labor is working with communities in Melbourne’s west to deliver cleaner air and quieter streets whilst keeping freight moving, keeping our promise to the community,” she said.
“We have listened to the community about the heavy vehicles impacting neighbourhoods and we are delivering that change to keep our streets quieter and healthier.”
The announcement sits alongside a broader series of freight and air-quality programs targeting Melbourne’s west.
The government has also established an $8 million Victorian Freight Decarbonisation Co-Investment Program, which provides grants of up to $300,000 to small and medium freight operators to help them move towards low- and zero-emission vehicles, charging infrastructure and other cleaner technologies.
More than 30 businesses across Victoria have been selected through the program, according to the government, with the initiative designed to reduce freight emissions while also lowering operating costs and reducing noise in communities along freight routes.
The government has also invested in road-sealing works in Melbourne’s west as part of measures responding to recommendations from the Inner West Air Quality Community Reference Group. A further $3 million was allocated for local road sealing, on top of $5 million previously committed, with works involving Maribyrnong, Hobsons Bay and Brimbank councils.
The freight measures are part of the government’s Victoria Delivers: Victorian Freight Plan 2025–2030, which forecasts the volume of freight moved across Victoria will increase substantially over coming decades.
Government figures show Victoria’s freight industry currently moves about 440 million tonnes of goods each year, with that figure forecast to rise to around 908 million tonnes by 2050–51. The sector employs about 240,000 people.
Member for Footscray Katie Hall said communities should benefit directly from efforts to reduce truck movements through residential streets.
“Only Labor is getting trucks off our local streets and investing back into local communities,” Hall said.
While the West Gate Tunnel and truck bans have changed freight movements across the inner west, concerns remain in some communities about trucks being redirected to other arterial roads, including Millers Road and Williamstown Road.
Minutes from West Gate Tunnel community meetings show residents previously raised concerns about increased traffic, congestion and truck emissions on roads outside the permanent no-truck zones. Transport officials said traffic monitoring would be used to assess impacts and determine whether further mitigation measures were required.
That makes the design of the Better Freight Outcomes Fund particularly relevant for residents who want future spending to address local noise, air quality, safety and neighbourhood amenity.
The survey opened on 12 October and closes on 1 November, with responses expected to inform grant guidelines and assessment criteria before applications open in 2027.
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