Victorian state budget ‘extremely disappointing’ for small business, restaurant owner Chris Lucas says
One of Melbourne’s most influential people, Chris Lucas, says Victoria has created an “investment no go zone” for businesses which are saddled with taxes squandered on buying votes.
Business
Don't miss out on the headlines from Business. Followed categories will be added to My News.
One of Melbourne’s most influential entrepreneurs, restaurant owner Chris Lucas, says Victoria’s budget is “extremely disappointing” for small businesses, joining industry groups who say its ‘no new taxes’ mantra fails to recognise the burden of existing levies.
With the state’s net debt to swell to $194bn by June 2029 and with taxpayers expected to bear annual interest repayments of $10.5bn in three years, Mr Lucas was scathing of treasurer Jaclyn Symes’s fiscal strategy.
“Rather than reduce our debt with the increased GST take or remove taxes it’s being wasted on more frivolous expenditure to buy votes,” he said.
“Victoria faces an unprecedented challenge after ten years of wasteful spending and some of the highest taxes in the nation. As a consequence our economy is at a standstill with little or no growth and a declining standard of living.”
Mr Lucas, who employs 2500 staff across the country and helms hospitality institution Chin Chin in Melbourne, said the state government is being “dishonest claiming no new taxes in this budget”.
“The doubling of the emergency services levy hurts farmers, small businesses and households. The doubling of the congestion levy and its expansion to bordering suburbs also will be passed onto consumers and businesses,” he said.
“With over 60 new taxes and levies introduced in the last few years this state has now become an investment no go zone and is causing enormous damage to our communities and small businesses.
“The government seems to not listen or care enough about the crisis brought about by their policies which is terribly distressing for so many Victorians.”
A slim operating surplus of $600m is forecast for 2025-26 with no new taxes announced. A controversial emergency services fire levy now set to chip in $1.6bn a year and a congestion levy set to push up the price of parking in the city add to revenue.
In all, revenue collected from taxes is expected to deliver $48bn by 2028-29, about a 30 per cent increase from the $36.8bn in 2023-24.
Under Victoria’s Premier Jacinta Allan, the budget on Tuesday promised $240m to fund initiatives in the so-called economic growth statement, including to boost jobs and investment in manufacturing and exports.
This will include $150m to launch the Victorian Investment Fund to “boost investment in the state”, $34.9m for small and medium-sized businesses to “identify new markets and diversify their customer base”.
Australian Industry Group boss Tim Piper told the Australian he did not believe the state is headed toward a recession, but said there is “very little in this budget that engenders confidence for business”.
“That little amount of funding ($240m) is not going to go very far in a $107bn budget. There is no doubt this was an election budget,” he said.
In an earlier statement, Mr Piper said the government’s “no new taxes mantra fails to recognise the additional taxes already announced that businesses will pay”.
“An amount of $300 million for business support looks inadequate compared to the cost-of-living support offered, which will support electorates doing it tough.”
Victorian Chamber of Commerce and Industry chief executive Paul Guerra said there are some “modest” offerings for business in the budget.
“We are really pleased to see the budget return to surplus because it means the government is clear about reducing debt and it’s great to see the economic growth statement funded,” he said.
He said it was “good to see regional tourism getting a boost”, regional skill development being supported and increased opportunities for exports.
“Whilst this budget is around cost-of-living, we hope in time that the cost of doing business is address by reducing taxes and making sure there is more stimulus to enable business to get that growth.”
More Coverage
Originally published as Victorian state budget ‘extremely disappointing’ for small business, restaurant owner Chris Lucas says
Brisbane Boys’ College reveals all-star roster to dominate sports
An elite Brisbane school has spared no expense in recruiting and keeping an all-star coaching roster to guide them through the ultra competitive GPS sport program.
Dovish Reserve Bank tone raises hopes of more rate cuts
The Reserve Bank may end up easing too much from here, but it will be justifiable as the erratic trade policy of the Trump administration continues to be a threat to the outlook.