The money keeps flowing while the debt keeps climbing. Victoria is the most indebted state in the country, carrying $167.6 billion in net debt and paying about $28.9 million a day just in interest. Even so, the Allan Labor government has handed $4.9 million to almost 200 multicultural and multifaith organisations, framing the spend as a defence of diversity that is "under attack", even as One Nation overtakes it in the polls five months out from the state election.
And it sits on top of the bill federal taxpayers are already paying. Nationally, multiculturalism costs more than $435 million a year under the Albanese Labor government. Victoria's $4.9 million is a state top up on that.
What the money is and where it comes from
The cash is the first round of the Multicultural Capacity Building Program, a $5 million grant scheme announced in January by Victorian Minister for Multicultural Affairs Ingrid Stitt. It offers grants of up to $10,000, $100,000 or $400,000 across three streams.
Crucially, the money isn't only for one off projects. The government says organisations can use it for "ongoing expenses and day-to-day operations", including "IT systems and business planning". In other words, the taxpayer is being asked to fund the running costs of ethnic and faith based organisations, not just events.
The program flows from the Victorian Multicultural Review led by George Lekakis AO, handed down in September 2025, which called for more support to keep grassroots multicultural groups going.
The 'diversity under attack' justification
Premier Jacinta Allan's office confirmed the handout and cast it as a political stand, telling reporters the money went to almost 200 organisations covering 46 ethnicities and 15 faith groups.
"At a time when our diversity is under attack, the Allan Labor Government is reaffirming our commitment to multicultural and multifaith communities," the Premier's office said. "We don't just tolerate diversity, we embrace it."
Stitt put it in similar terms.
"Grassroots multicultural organisations are the lifeblood of our communities. We're backing them in with extra funding so they can continue supporting our multicultural communities," she said.
Who is getting the money
According to the Premier's office, recipients include the Australian Iranian Society of Victoria, funded to "establish a sustainable operational base and expand education and community engagement initiatives", and the South Sudanese Australian Academic Society, funded to deliver "education and wellbeing support programs".
The Gurduaras Council of Victoria was funded to "enhance organisational capacity and expand culturally safe support services for Sikh Victorians". Labor said $1.6 million of the total went to new and emerging or regional communities, a list that runs to more than 30 countries and ethnicities, from Afghanistan and Iran to Somalia, South Sudan, Syria and Ukraine.
It's on top of the $435 million Canberra already spends
This is a state top up on a bill federal taxpayers are already paying. Nationally, multiculturalism is a standing line in the Commonwealth budget worth more than $435 million a year, across grants, media, language schools and a taxpayer funded broadcaster. Victoria's $4.9 million sits on top of that.
It also lands as the argument over the policy sharpens. Federally, One Nation has said it would abolish the multiculturalism minister and scrap the office that funds this kind of program, and party leader Pauline Hanson has called for a monocultural Australia, multiracial but bound by one language and one set of laws.
The politics: Labor is writing cheques while trailing One Nation
The timing is the story. Victoria goes to the polls on 28 November, and Labor is in trouble. Recent surveys have put Labor third on the primary vote, with One Nation overtaking both Labor and the Coalition in the state for the first time. Premier Allan's approval has cratered.
So a government sliding toward defeat is spending millions to fund the running costs of multicultural groups and branding anyone who questions it as attacking diversity. Whether voters see that as backing their communities or buying them, they get to answer in November.
