Wednesday, 15 October 2025

 Ryan BATCHELOR (Southern Metropolitan) (17:42): I rise to speak on the 2024–25 financial report, which was tabled by the Treasurer earlier today. The report is a summary of the state of the finances here in Victoria in the last full financial year, and the report does two things. One, it demonstrates that the Victorian economy is strong and we have good economic foundations, and the second is that the government’s fiscal strategy is working. In economic terms, this report demonstrates that the policies of the government are supporting jobs growth, backing business and building the state-shaping infrastructure that Victoria needs to lift our productivity and to lift the participation in the Victorian economy. We are creating a stronger Victorian economy.

In the last decade, the report shows, Victoria’s economy has grown faster than any other state, up 31 per cent since 2014. In employment terms, the share of Victorians in employment and our participation rate are at record levels. There has never been a higher share of Victorians in employment or a higher participation rate than we have here. Our state final demand, economic activity in the state, is growing in real terms. And dwelling investment, for those who want to get a sense of the impact that the government’s housing policies are having, is up 3.9 per cent in the year. But I think the most important economic fact for Victorians in this report is that real wages are growing in Victoria. Real wages grew in Victoria in 2024–25 for the first time since the pandemic. As a Labor member I am very proud that this government is supporting an economy delivering real wages growth for Victorians.

If we take a look at the state’s fiscal strategy, the government’s fiscal strategy, we do have a five-step fiscal strategy, and this report demonstrates that step after step we are making the progress we need to be making to implement that fiscal strategy. The report itself demonstrates that we will have an operating result in 2024–25 of a $2.6 billion deficit. Looking at that figure, compared to what the deficit was in the year prior – it was $4.2 billion – it is a considerable improvement on the prior year. But more importantly, the result we achieved at the end of the financial year is $800 million better than we thought it would be at the time of the budget update. In net operating cash terms, this financial year we delivered a net operating cash surplus of $3.2 billion, which is $2.6 billion more cash operating surplus than the government projected at the budget update.

Things are improving in our fiscal position, according to the figures in this report. For matters like net debt, both as a percentage of GSP and in dollar terms, the net debt numbers are lower than they were estimated to be. And what is interesting is that the general government infrastructure investment was lower in 2024–25 than the budget estimate but also compared to the expenditure in 2023–24 – I think demonstrating that the government is spending what is necessary, but not more, on its infrastructure investment. There is a lot in this report that we could go through in terms of how the Victorian economy is strong and growing stronger, and particularly, as I said, growing real wages. It demonstrates that the state government’s fiscal strategy, ably being led by the Treasurer, is demonstrating that we are meeting our goals and we are delivering measurable improvements. I commend the report.