Budget 2023–24
Gaelle BROAD (Northern Victoria) (17:37): (178) My adjournment matter relates to the coming state budget. From all reports, we are in for a bumpy ride. Under this government our debt has soared to record levels and Victoria is now the highest taxed state in the nation. At a time when households are under pressure with rising living costs, my call to action is to the Treasurer to put a freeze on state taxes and levies. When Labor came to office in 2014 our state debt was $22 billion. Now it is over $100 billion and forecast to reach $165 billion in three years. Victoria’s debt is now more than Queensland, New South Wales and Tasmania combined. This government has made some big promises. In the last eight years spending on major projects has increased from $16 billion to $106 billion. With over $30 billion of waste and project cost blowouts, the Big Build has become a big mess. Labor has run up the state’s credit card. As interest rates rise, so do our repayments. We are now paying over $10 million a day in interest, and it is getting worse. This year the interest bill is over $3.8 billion. By 2026 it is expected to be over $7 billion. We have had 11 interest rate hikes in the past year, and the latest rate rise will add millions more to the state debt. Data from the ABS shows that Victoria is now the highest taxing state per capita in Australia. Victoria’s tax take is set to double since this government was elected nine years ago. In 2014, when the coalition held office, total state taxes were just over $18 billion. By 2026 state taxes are forecast to be $35.6 billion.
Public service numbers have soared. Department heads are earning salaries of up to $750,000. A report by the Victorian Chamber of Commerce and Industry found that Victoria is now one of the hardest places in Australia to do business. The CommSec State of the States report shows that we are now trailing behind other states on economic performance. Victoria is now a very fragile state with an unhealthy dependence – an addiction – to property-related taxes. They made up 60 per cent of our total state revenue in 2021, and now our housing and construction industry is under pressure. We pay our taxes because we expect the government to invest in health, in education, in building better roads and providing emergency services. We need more teachers, nurses and police. We need less debt and government waste and more support for industry and small business. Victorians are tired of paying more and getting less. At a time when families, businesses and households are experiencing a dramatic increase in the cost of living, our state cannot afford more or increased taxes.