Victoria to be ‘open for business’ under bold Allan government plan
Major economic reforms are set to be announced by the Allan government in a bid to boost new investment in Victoria and ease the burden on businesses across the state.
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Victoria will be declared “open for business” amid a suite of major economic reforms set to be announced by the Allan government.
The Sunday Herald Sun can reveal the government is poised to outline a bold plan within weeks to encourage new business investment across the state and ease the burden on existing businesses.
Cutting bureaucratic red tape and centralising regulation and planning schemes are expected to form a key part of the government’s new Economic Growth Statement, as is a renewed focus on manufacturing.
The plan is expected to make it easier for business to access existing government incentives and get industry projects approved quicker, while business figures say if implemented properly it would have a multi-billion dollar on the economy.
It is understood tax relief will not be part of the plan which is understood to feature five key pillars that underpin the growth statement including housing, deregulation and innovation.
On her recent trade mission to India Premier Jacinta Allan was keen to impress that Victoria was open for business, now she believes the new growth statement will increase confidence in that claim.
“Victoria is the best state in Australia to live, work and raise a family,” Ms Allan told the Sunday Herald Sun.
“My focus has always been helping busy families and building for our future.
“Next month I will release an Economic Growth Statement that will confirm Victoria is open for business.
“This week I said I was a builder, not a blocker. It’s why the statement will focus on cutting the red tape holding too many businesses back, while outlining our priority sectors including manufacturing, I want to build the workforces we need for the future, drive growth in wages and ensure no Victorian is left behind. It’s what industry has told me they need, and it’s what I’ll deliver.”
Victorian businesses have been hit with new taxes in successive state budgets to fund a massive investment in mental health policy and rising debt.
This year’s budget phased out insurance duty, replaced commercial stamp duty with a land tax, and lifted the payroll tax-free threshold in a move treasurer Tim Pallas said would save businesses an estimated $900m over the next four years.
However Victoria has, since 2022, repeatedly been voted the hardest state to do business. Red tape has been criticised as a major barrier with estimates up to $1.6bn could be saved annually by reducing the bureaucratic burden.
The Victorian Chamber of Commerce and Industry latest Business Pulse survey, revealed the top challenges for Victorian businesses were the cost of doing business, reducing turnover and staff and skills shortages.
VCCI chief Paul Guerra said urgent government intervention was needed. Mr Guerra said he had been working with the government on the economic statement and said it was a significant opportunity to bolster business confidence, and partner with the private sector to bolster the economy.
But he urged the government not to squander the opportunity to make an immediate impact.
“What we’ve pushed for is that Victoria is open for business and Victoria is open to business,” he said.
“We don’t need more announcements that are then going to take time to roll out.
“We’re trying to land business from all around Australia and all around the world.”
Mr Guerra said some form of tax relief would be critical to the success of the economic statement as “there’s a really strong negativity running against Victoria.’’
“You’ve got people looking at the government saying they’re a difficult government to do business with,’’ he said.
While budget forecasts warn Victoria’s debt is on track to peak at a record $188bn by 2027-28, the government says it’s debt recovery plan is working as intended.
The unemployment rate has fallen to 4.4 per cent – more than two points lower than when it took office in 2014 _ and state final demand, which measures public and private investment and spending, has increased by 2.1 per cent in 2023-24 pushing it 14 per cent higher than pre-pandemic levels.
Latest data showed business investment had also increased by 6 per cent in 2023-24, while Deloitte Access Economics has forecast that the Victorian economy would grow faster than the national average over the next five years.
Australian Industry Group Victorian head Tim Piper said he was hopeful the statement would recognise that industry needed to be moving “much more quickly than we are able to right now”.
Shadow Minister for Casino, Gaming and Liquor Regulation Danny O’Brien said “Labor’s red tape and bureaucracy is strangling Victorian businesses”.
Originally published as Victoria to be ‘open for business’ under bold Allan government plan
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