UPDATE: In a bold move that could reshape Victoria’s financial landscape, the Labor government has unveiled plans for a sweeping tax overhaul, estimated to cost $10.8 billion. This announcement has thrown the state’s political arena into chaos as the November 2026 election approaches.
The proposed changes include the removal of the expanded emergency services levy and short-stay accommodation levy, alongside revoking payroll tax exemptions for high-fee private schools. In a bid to support first-time home buyers, Labor also plans to expand stamp duty concessions while pledging not to increase any charges.
Treasurer Jaclyn Symes has tasked her office and Finance Minister Danny Pearson to evaluate the financial implications of these proposals. During a press briefing at the Parliament on Tuesday, Symes accused the Liberal Party of creating a “massive black hole” in the budget. “When Liberals need to fill financial gaps, they cut frontline services,” she stated, emphasizing the urgency of her party’s fiscal responsibility.
The opposition, led by Opposition Leader Brad Battin and newly appointed shadow treasurer Jess Wilson, contests Labor’s figures, claiming their tax policies will cost closer to $5 billion. Wilson, who is seen as a rising star within the party, responded sharply to Labor’s claims, labeling them as “bizarre” and “wildly inaccurate.” She emphasized that the coalition would reinstate the Fire Services Property Levy to fund its initiatives.
Battin further criticized the Labor government’s track record, suggesting that significant savings could be achieved through cutting waste within the government. He pointed to billions in cost overruns on major infrastructure projects during Labor’s three terms in office, questioning the sustainability of the current administration’s plans.
Victoria’s net debt is projected to hit a staggering $194 billion by mid-2029, with interest payments expected to soar to nearly $29 million per day. Symes attributed the state’s deteriorating budget position to heavy spending on major projects and economic support during the COVID-19 pandemic.
One of the most contentious issues is the $34.5 billion Suburban Rail Loop, a flagship project for the government, which is facing a significant funding gap. The federal government has only allocated $2.2 billion, leaving many questions unanswered about how the project will be financed. Tunneling for the first stage of this ambitious 90km orbital rail line, stretching from Cheltenham to Werribee, is scheduled to commence in 2026.
As political tensions mount, all eyes will be on Victoria as the election approaches. The ramifications of this tax proposal could have lasting impacts on the state’s economy and governance.
This developing story is being closely monitored, and updates will follow as the situation unfolds. Share your thoughts on social media and stay informed on this critical issue affecting Victoria’s future.
