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How Victoria became a poor state (and the 16 charts that prove it)

How Victoria became a poor state (and the 16 charts that prove it)

The state’s parlous finances mean voters are bound to face a combination of cuts in government spending and increases in taxation.

A tram passes Flinders Street Station in Federation Square; The city served as Australia’s capital until 1927, but its fortunes have sunk.  iStock

Saul EslakeContributor

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Throughout most, if not all, of the 20th century, Victorians thought of their state as the richest and most powerful in the nation.

Victoria was able to foist its economic model of high tariffs and centralised wage fixation on the rest of the country at the time of Federation. Melbourne served as Australia’s capital until 1927, and many federal departments remained headquartered there for decades after parliament shifted to Canberra. The High Court maintained its principal registry in Melbourne until 1973. Victorian MPs served as prime minister for 60 per cent of the 20th century.

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Saul Eslake
Saul EslakeContributorSaul Eslake is former chief economist of ANZ Bank and of Bank of America Merrill Lynch in Australia, and is now principal of Corinna Economic Advisory based in Hobart.

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Original URL: https://www.afr.com/politics/how-victoria-became-a-poor-state-and-the-16-charts-that-prove-it-20241122-p5ksuq