Victorians are facing 55 new or increased taxes and a record debt of nearly $200 billion after 10 years under the Labor government, the state’s Shadow Treasurer said in a budget reply speech.
“After a decade of Labor, debt in Victoria still remains more than NSW, Queensland, and Tasmania combined,” he said.
Victorians have been forced to pay an additional $14 billion (US$9.34 billion) over the past decade as a result of the government’s “blowouts and mismanagement,” he added.
Victorians Burdened By Taxes
Mr. Rowswell noted that since the Labor government took power 10 years ago, it has introduced 55 new or increased taxes, despite former Premier Daniel Andrews’ promise on the eve of the 2014 elections that there would be “no new taxes.”
The 2024-25 state budget, released on May 7, also increased the fire service levy and the waste levy, raising costs for families disposing of rubbish at licensed landfills.
Additionally, a holiday and tourism tax will take effect in January 2025, taxing holidaymakers 7.5 percent on short-stay accommodation platforms such as Airbnb and Stayz, on top of the 10 percent GST.
After imposing extra levies on landowners in its budget last year, the Labor government plans to introduce a new Home Owner Tax on all properties across the state, further increasing the cost of building residential property.
This comes on top of the centre-left government’s more than 30 increased property taxes over the past 10 years, Mr. Rowswell said.
Investors, Businesses Flee the Market
Amid a rental crisis, Victorian property investors are selling off their investment properties en masse, burdened by COVID-19 taxes, rising maintenance costs, and regulatory restrictions.$9 Billion Per Year To Pay Off Interest Bill
Victorians are facing a daily interest bill of $25.6 million, Mr. Rowswell added. At the same time, the government is spending $5.1 billion annually on programmes in the family centres and housing portfolio, and $9.4 billion a year to pay for the interest debt that has “ratcheted up over the last 10 years.”“If Labor hadn’t created so much debt by their irresponsible spending, they could have scrapped stamp duty entirely,” Mr. Rowswell noted.
“Instead, they need that $9 billion a year to just pay back the interest payments on their debt, not to build anything or fund anything, just to repay interest, that is now almost $26 million a day.
“Imagine what that would do for first home buyers and downsizes, but thanks to labor and their near $200 billion debt, they can’t scrap it, they can’t consider scrapping it.”
The $26 million interest bill could instead pay for 128 ambulances, two breast cancer centres, 2,715 elective surgeries, or the annual salary of 315 nurses, 510 police recruits, or 305 paramedics every day, the shadow treasurer noted.
Mr. Rowswell also called on the government to reign in its “infrastructure binge,” saying it is a key driver behind the soaring debt. This includes pausing the Suburban Rail Loop, a 90 km underground railway line that runs from Cheltenham to Box Hill, connecting Melbourne’s east and southeast, and instead focusing on funding the West Gippsland hospital.
The opposition has promised it would support businesses, “roll out more red carpet and less red tape to investors” make housing more affordable and introduce a debt cap, and resonate a productivity commission if elected in 2026.
