Business Council of Australia: Victoria needs to turbocharge growth, not debt at taxes
Victoria has been found to be the worst place in Australia to do business — the Allan government needs to turbocharge private-sector growth, not debt and taxes.
Opinion
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Victoria’s economic success is critical to Australia.
Yet debt and interest have ballooned, and taxes hiked. Businesses are turning elsewhere.
A healthier economy is one where small and large businesses are encouraged to start up, hire and flourish.
While there are some green shoots, particularly around planning and the Economic Growth Statement, Victoria has a long way to go.
The Business Council’s 2024 Regulation Rumble report found Victoria was the worst performing state or territory for doing business, dragged down by costs and regulation.
It has the second worst payroll tax settings, the least competitive property tax settings, and the second least competitive licensing requirements.
Our report found a cafe owner can face 36 licences, codes of practice and regulations before pouring the first coffee.
Why does this matter? Six in every seven jobs come from the private sector, and around 80 per cent of all economic output comes from businesses of all sizes.
Businesses doing well means more money for services, and the chance to pay down the eye-watering debt faster.
To help turn this around, Victoria needs to turbocharge policies that support businesses to grow and pull back on the tax more approach.
The government’s plan to reduce the regulatory burden is welcome and needed — we just need it to happen faster and go further.
Similarly, the work to fix planning barriers preventing new development is positive.
To really turn the dial, we need a rethink of one of the most destructive taxes in the Commonwealth — payroll tax.
It disincentivises businesses to hire in Victoria, a perverse result of tax policy if ever there was one.
Australia needs Victorian businesses to succeed. When they do, every Victorian benefits.
Bran Black is the chief executive of the Business Council of Australia
Originally published as Business Council of Australia: Victoria needs to turbocharge growth, not debt at taxes
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