Nine major issues facing new Victorian premier Jacinta Allan

As the former minister for Victoria’s cancelled Commonwealth Games and over-budget transport infrastructure projects Jacinta Allan has a big job ahead in rebuilding her reputation.

Jacinta Allan is Victoria’s 49th premier, replacing divisive Daniel Andrews. But the new state leader is set to face stiff challenges, that will not disappear with the man.

Among her toughest challenges will be the state’s massive debt, ugly pay disputes, housing, education and health system crises — and, of course, the factional fighting the Labor Party is famous for. But first, she must rebuild her reputation and distance herself from her autocratic predecessor.

1. Rebuild her reputation

It will be hard to shake off once holding the title of Minister for Commonwealth Games Delivery, considering the event disastrously never got off the ground. And as Minister for Transport Infrastructure Allan has overseen billions in construction cost blowouts including for the Metro and West Gate tunnels.

2. Distance herself from Dan

Given her ascension was set-up by her Socialist Left factional ally, the divisive and autocratic Daniel Andrews, Allan must now work hard to be seen to be distancing herself from his dictatorial leadership style and factional favouritism, in order to be a more consultative, effective and popular leader.

3. Deal with the state’s huge debt

Victoria’s net debt will be $171bn by 2027, which will be greater than NSW, QLD and TAS combined. Taxpayers are also being slugged millions each day in interest.

Ratings agencies have raised concerns about Victoria’s growing debt, with warnings it could derail future major infrastructure projects and the state’s credit rating.

4. Make hard decisions on the Suburban Rail Loop

The first two stages of the Suburban Rail Loop have been given a massive $125bn independent price tag. And it was Allan — who has been the Minister for the Suburban Rail Loop for three years — who claimed a month before the 2018 election the controversial project would cost “in the tens of billions, potentially up to $50bn”. On Thursday she doubled down on her support for the project, saying the first stage was on track to be delivered on budget. Allan also defended her role overseeing massive cost and time blowouts on major projects, saying she was committed to forging ahead with a bold infrastructure agenda. Will she have the courage in the future to scrap or pull back major infrastructure projects championed by her predecessor — like the SRL — if and when there are huge cost blowouts?

5. Handle Labor factional wars

The installation of a new Premier won’t stop the factional fighting that has plagued Victorian Labor for the last decade (and indeed long before).

Ben Carroll, from the party’s Right, formally challenging Allan for the leadership was a strong sign that the factions inside the Labor Party will be nowhere near as contained as they were under Andrews.

6. Deal with housing plan blowback

Daniel Andrews this month released a landmark Housing Statement, aimed at addressing Victoria’s growing accommodation crisis — but few believe it will work to fully fix the serious problems and some groups are furious about components of it.

Landlords are also selling off their properties amid the new land tax hike impacting rental supplies.

Under the changes Victoria will also become the first state in Australia to have an Airbnb tax of 7.5 per cent tax and 44 housing towers will be rebuilt, moves which have caused outrage in some quarters.

There is blowback over Dan’s grand housing plan that the new Premier will cop. Picture: David Crosling

Victorian Greens leader Samantha Ratnam has accused said the government of laying the groundwork for ending public housing in Victoria and Victorian Tourism Industry Council chief executive Felicia Mariani has described the Airbnb tax as a “flawed” move.

“Asking consumers to pay more for their holiday rental won’t magically increase housing supply. This policy will not encourage property owners to take their houses off Airbnb and return them to the long term rental market,” she said.

“What the Victorian government is proposing is not a tax on short-stay platforms or property owners, it’s a tax on consumers who rent those properties.”

7. Tackle the health and triple-0 crisis

Victoria’s health crisis is set to worsen, with doctors leaving to work interstate, the Royal Australasian College of General Practitioners recently warned.

The Victorian government has been urged to follow other states’ lead by scrapping tax audits.

RACGP president Nicole Higgins says there is evidence Victorian practices are being hit for retrospective tax collection due to a new application of payroll tax.

“Victoria is one of the last states to address this issue and it is fast becoming a crisis,” she said.

The GP crisis comes as claims emerge that Victoria’s major hospitals are underfunded, rundown, neglected and in some cases not fit for purpose.

The state’s major trauma hospital The Alfred is overrun with rodents, with mice seen running around patient rooms and an operating theatre.

The state government has come under increasing pressure to increase funding to The Alfred, where Premier Daniel Andrews was treated after his step fall.

An Air Ambulance arriving at The Alfred, just one of the state’s outdated health services.

Ahead of the state election surgeon Mark Fitzgerald, who provided critical care to the Premier, said he was “dumbfounded” at lack of funding and said the facility’s 60-year-old operating theatres were no longer fit for purpose.

“When the Royal Australasian College of Surgeons looked at our operating theatres in 1998 … they called them prehistoric. This (funding) has to be fixed,” he said at the time.

Andrews himself declared there was a triple-0 operator crisis in 2014, but the system has not improved under Labor. For years the system has been plagued with delays and funding shortages, and despite the warnings to government nothing effective has been done. In 2022 a report linked at least 12 deaths to Victoria’s crisis-addled triple-0 service.

Ambulance ramping is rife and the system in deep crisis.

8. Solve the state’s schools’ crisis

Victorian school staff vacancies have surged to almost 3100, three times higher than the beginning of term one.

As a result Victorian students are being forced to sit on the floor in the back of classrooms and the education union has intensified its war with the state government, sounding the alarm on a broken system, and angry the government is failing to invest in a solution to the chronic problem.

Victorian branch president of the Australian Education Union Meredith Peace recently said the state was battling an “unprecedented” teacher vacancy rate.

This was forcing schools to combine classrooms and even cancel VCE lessons, Ms Peace said.

“Some of our youngest children are sitting in the back of classrooms on the floor because they haven’t got a classroom teacher for the day,” she said.

9. Handle ugly pay disputes

Hundreds of firefighters this week took to the streets in protest against ongoing disputes over pay and workplace conditions.

The rally, led by the United Firefighters union, began at Fire Rescue Victoria headquarters before protesters marched towards parliament.

Firefighters protest in Melbourne over pay and conditions. Picture: Valeriu Campan

They have called for the resignation of Fire Rescue Victoria Commissioner Gavin Freeman, with protesters were heard shouting: “Andrews burns firefighters … (Emergency Services Minister Jaclyn) Symes has sold us out.”

Senior government minister Ben Carroll was also booed by angry protesters.

UFU boss Peter Marshall has warned the protest marks the beginning of a campaign and refused to rule out entire walk-offs.

Fireys are not the only union chasing more cash for their workers.

Originally published as Nine major issues facing new Victorian premier Jacinta Allan