Thursday, 16 October 2025

 David DAVIS (Southern Metropolitan) (12:05): (1078) Treasurer, I refer to the $106 million shortfall in payroll tax revenue revealed by the financial report for the state of Victoria yesterday. It is a sign that Victoria is struggling and our economy is on track for massive debt and at risk of a credit downgrade. It is explained in the documents as being due to softer than expected employment outcomes. My response is: yes, Treasurer, this is obviously softer than expected employment outcomes. But do you take responsibility for the fall in payroll tax revenue, which is fundamentally due to the government jacking up payroll tax to the point where the revenue starts to decline?

 Jaclyn SYMES (Northern Victoria – Treasurer, Minister for Industrial Relations, Minister for Regional Development) (12:06): I thank Mr Davis for his question and indeed his acknowledgement that the government has made cuts to payroll tax and increased the tax-free threshold recently. We have the lowest payroll tax thresholds in regional Victoria compared to all of the other states. Mr Davis, if you had listened to my response on Tuesday, which includes the latest data, you would recall that I could point to 123,000 new businesses created in Victoria since June 2020. I could talk to you about the additional 32,400 Victorians who found a job in August, which is the highest job growth in the nation. This jobs boost has propelled Victoria’s total employment to 3.82 million – a record high. We have the highest participation rate of all of the other states in relation to those people that are in the workforce, and that is all because of a number of government policies such as Best Start, Best Life and the ability for women to re-enter the workforce earlier than perhaps they would have planned. Free TAFE to ensure that people are getting the skills to fill the skill gaps that have been responded to. Mr Davis, the economy is strong. There is always more to do, but there are plenty of opportunities for those that want to talk up our state to join me in that endeavour.

 David DAVIS (Southern Metropolitan) (12:08): I ask the Treasurer: why did you authorise the engagement of external consultants at the cost of $104,000 to prepare various briefings to credit rating agencies related to the retention of the state’s credit rating? Is this the need for glossy presentations, a sign of incompetence or both?

Jaclyn Symes: On a point of order, President, I would be more than happy to answer the question, because it is a relevant question to me as Treasurer, but in no way does it relate to the employment numbers that Mr Davis referred to in his substantive question. This sounds like a completely new substantive question, which I would be happy to answer if he wants to use his next slot for it.

Members interjecting.

The PRESIDENT: The trouble I have got is that everyone is really yelly today. I kind of did not register when Mr Davis asked a supplementary. I might ask him to ask it again, and then I will consider the point of order.

David DAVIS: As I indicated in my substantive question, the fall in payroll tax is a sign of the economy in trouble and the risk of a credit rating downgrade. I therefore ask the Treasurer: why did you authorise the engagement of external consultants at the cost of $104,000 to prepare various briefings to credit ratings agencies related to the retention of the state’s credit rating? Is this a sign of the need for glossy presentations, or is it a sign of panic and incompetence, or both?

The PRESIDENT: Going to the minister’s point of order, she found it hard to relate it to the substantive question about payroll tax. It seems to be on a different topic, and it does not seem to reflect anything from the minister’s answer.

David DAVIS: On the point of order, President, I pointed in my substantive to the risk of a credit rating downgrade. That is the point.

Sonja Terpstra: Further to the point of order, President, Mr Davis was asking the Treasurer questions about consultants. I still cannot understand how the supplementary relates to the first part of the question, which was about payroll tax. I think it should be ruled out.

The PRESIDENT: I am happy to uphold the point of order. Simply referring to something that you have said previously and then going to a different topic does not necessarily make it relative to the substantive question. But if Mr Davis wants to have another crack at aligning it with his substantive question, then I am happy to hear it.

David DAVIS: I said in my original question that the fall in payroll tax revenue is a sign that Victoria is struggling. Our economy is on track for not just massive debt but the risk of a credit rating downgrade. I ask the minister: why did you authorise the engagement of consultants to deal with the problems with your credit rating?

The PRESIDENT: I am sure the Treasurer is happy to respond. I think the issue is that you only get 1 minute, and that makes it harder when it is a substantive, but I am sure the Treasurer will have a crack in 1 minute.

 Jaclyn SYMES (Northern Victoria – Treasurer, Minister for Industrial Relations, Minister for Regional Development) (12:12): Mr Davis, Victoria’s credit rating has remained stable, as confirmed by the three ratings agencies that do indeed rate us. In relation to bringing in –

David Davis interjected.

Jaclyn SYMES: I reject the premise of your question, because you are introducing facts that have no substance. The way you have characterised any engagement is wrong. The way that you have referred to glossy documents is wrong. I am trying to be generous in actually responding to a question that probably does not have standing, given it should be a substantive question, and your interjections have made that even more difficult. In relation to expertise to support the department, this is more than an appropriate use of resources.