MELBOURNE, 27 June, 2023: A month on from the release of the Victorian Budget is a good time to reflect on its contents, and what it means for Victorians.
The Budget does what matters. It follows through on what we promised. It looks after people – and our future. It’s essentially two Budgets in one.
We’re paying off the COVID emergency credit card we used to save lives and protect family budgets, and we’re continuing to invest in jobs and the projects that build our state.
The Andrews Labor Government’s efforts have made Victoria the nation’s jobs leader. Since the height of the pandemic, almost 480,000 Victorians have secured work. New South Wales comes in second – 106,000 jobs behind.
A record 3,627,800 Victorians are in work. One in eight of them have secured their job since September 2020.
It’s a resurgence that proves the dedication, hard work and initiative of Victorians, and it has created a confidence that is evident from Mildura to Mallacoota.
We didn’t get here by accident.
When the pandemic hit Victoria, we acted quickly and decisively to safeguard the economy – and to prevent economic scarring that would have left a generation out of work.
Governments across the country – and the world – did the same thing. It was not just the right thing to do – it was the only thing to do – and it was based on advice from the RBA and the Federal Treasury
Our COVID emergency borrowings of $31.5 billion paid for the massive health response – for the expanded hospital operations, the testing centres and the boosted health workforce that saved the lives of so many Victorians.
It paid for the support that meant businesses could keep their workers on, and for the rent relief which meant many Victorians could keep a roof over their heads.
It meant when we did emerge from the crisis, we were able to rebound with vigour – and to sustain that recovery.
Today, Victoria’s economy is strong and growing. It’s bigger now than before the pandemic.
Now, we’ll keep doing what matters for Victorians. We’re delivering on every election promise we made – all while paying down COVID debt.
This Budget provides $4.9 billion for our healthcare system and its dedicated workforce, paying for extra nurses and investments to build and upgrade hospitals.
We’re continuing our life-changing work of building the state’s mental health system from the ground up, with $776 million for new services. We’re building new schools and upgrading existing ones.
The cost of living is tough for families and we’re helping with free kinder for three and four-year-olds, saving up to $2,500 per child each year.
We’ve slashed the cost of train travel across the state, bringing regional fares into line with metro fares.
We’ve introducing our fourth round of the Power Saving Bonus, with $250 to help households pay their bills.
We’re introducing the Victorian Vets Card with discounts on vehicle rego and free fishing and boating licences, and there’s free car rego for young tradies, saving apprentices up to $865 a year.
We’re backing families across the state today and ensuring the foundations are secure for decades to come.
The COVID Debt Repayment Plan is temporary, targeted and above all, responsible.
The Plan includes a COVID debt levy, to be temporarily paid by large businesses that were strongly supported during the pandemic and have the capacity to contribute. It affects about 5 per cent of businesses.
We’ll continue to back businesses by increasing the payroll tax tax-free threshold, ultimately benefitting 26,000 businesses, and we’ll free up capital for business growth by transitioning away from stamp duty for commercial and industrial property purchases.
The levy will also temporarily amend land tax and this measure will not affect the majority of Victorians, with the family home continuing to be exempt.
For investment properties, land tax can typically be recognised as an expense and be deducted against Commonwealth income tax.
The Government will play its role in repaying COVID emergency borrowings – we’ll rebalance the public service towards pre-COVID levels, making sure frontline services are maintained. This won’t affect wider public sector workers like nurses, teachers and police.
Budgets look ahead and plan for the future – for our children. We’re ensuring while our kids might have memories of COVID, they won’t be paying for it.
*Treasurer of Victoria.
