Victoria Remains Australia’s Least Competitive State, Dragging National Growth

South Australia tops the nation for a third year.
Victoria Remains Australia’s Least Competitive State, Dragging National Growth
Victorian Premier Jacinta Allan during a press conference in Melbourne, Australia, on July 2, 2025. AAP Image/Joel Carrett
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Victoria has again ranked as the least competitive state for doing business, extending a three-year run at the bottom of the national table.

The Business Council of Australia’s (BCA) 2025 Regulation Rumble report, released on Nov. 11, places Victoria last out of the eight jurisdictions for the third year in a row, showing the state has made no progress in lifting its business environment despite repeated warnings and policy commitments.

The state’s persistent shortcomings include some of the highest payroll taxes in the country, heavy property taxes, and rigid licensing rules that add compliance layers for small and medium-sized businesses.

The report says Victoria does fine in planning approvals, but that one strength isn’t enough to offset its bigger problems.

Naziya Alvi Rahman
Naziya Alvi Rahman
Author
Naziya Alvi Rahman is a Canberra-based journalist who covers political issues in Australia. She can be reached at [email protected].