Big business tax, election promises locked, regional transport fare cap

Health, education and transport got big cash injections in the state budget released Tuesday as big business is taxed more to help pay off Covid debt.

Chad Van Estrop and Chelsea Bunting

4 min read

May 23, 2023 - 1:27PM

Geelong Advertiser

Premier Dan Andrews has outlined tough measures in the 2023-24 budget. Picture: NCA NewsWire /Brendan Beckett

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The more than 60 election commitments across areas including education, transport and health made by Andrews’ Labor Government across Geelong will be delivered, Treasurer Tim Pallas says.

Spending outlined in the 2023-24 state budget released on Tuesday includes $41.1m to make regional public transport fares cheaper in 2023-24, planning money for secondary schools at Armstrong Creek West and Mount Duneed, and infrastructure projects on the Bellarine Peninsula.

But big businesses with payrolls over $10m will be hit with a 10-year tax to help the government repay debt accumulated during Covid.

The Geelong Advertiser was unable to find any new spending for the Geelong region in the 2023-24 budget.

Work on the $500m Geelong Women’s and Children’s Hospital, to be built on the site of Barwon Health in the CBD, is due to kick into gear with $24.45m in 2023-24.

Victorian Premier Daniel Andrews and Treasurer Tim Pallas. Picture: NCA NewsWire / Andrew Henshaw

The project, expected to include a multi-level hospital, is due to be completed in late 2029, according to budget papers.

The redevelopment of GMHBA Stadium is due to be completed in the first quarter of 2024 and the cost of the project is now $141.92m - $685,000 higher than outlined in budget papers last year.

Budget papers note the completion date of the stadium was impacted by “industry supply chain issues”.

Treasurer Tim Pallas said his ninth state budget released on Tuesday was the most difficult he’d prepared.

“The pace of government has been absolutely frantic over the last few years…. but the speed of government needs to return to normal, and we need to get back from the post-crisis environment to one where we’re dealing with the business of government in a normal and structured way.”

Major 2023-24 budget spending

STAMP DUTY / FIRST HOME BUYERS / HOMELESSNESS

- Continuing residential stamp duty exemption for properties worth less that $600,000 and concession for properties worth up to $750,000

- $100m for programs to help with homelessness

- 50 per cent reduction on land tax for built-to-rent developments for up to 30 years

Artist impression of the children’s emergency department at the University Hospital Geelong, Picture: Supplied

HEALTH

- $46m to train paramedics, $28m for existing paramedics in 2023-24

- Statewide $4.9bn for health infrastructure

- $50m to access public fertility statewide

- $4.08m to improve aged care in regional Victoria

- Continue ‘Strong Brothers Strong Sisters’ for young Aboriginal Victorians in Geelong - part of $2.5m fund

- $7.26m in 2023-24 for ambulance station at Armstrong Creek (total cost $30.4m)

- $24.45m in 2023-24 for Barwon Women’s and Children’s hospital in Geelong. The state government has pledged $450m for the project, with $50m to come from the Commonwealth. By June 30 this year, $8.96m will have been spent on the project which is expected to be completed by late 2029

Aerial photographs of Barwon Heads upgrade. Picture: Alan Barber

INFRASTRUCTURE

- Kardinia Park Stadium Stage 5 redevelopment up $685,000 and due to be completed in the first quarter of 2024. Budget notes the completion date has been impacted by “industry supply chain issues”

- Barwon Heads Road stage 1 completed by end of this year, roll out of stage 2 unknown

- Part of $47m will go to rebuild St Leonards pier.

- No money due to be spent on Point Grey redevelopment at Lorne in 2023-24 with completion in mid 2027

- $201m statewide to upgrade or build new community sport infrastructure

- Serendip Sanctuary and the YouYangs will receive $900,000 as part of a $10.9m promise

Geelong City Deal - $92.7m in this budget, part of $406.8m funding (include Commonwealth government funding)

- Great Ocean Road renewal - $75.5m in 2023-24

- Cost of the Geelong Convention and Exhibition Centre has increased by $9.85m

- $2.3m to “revitalise central Geelong” - include $500,000 from Greater Geelong council

- $1m to complete fourth mausoleum at Geelong Eastern cemetery

Progress on the stage 5 redevelopment at GMHBA Stadium. Picture: Mark Wilson

TRANSPORT

- Regional public transport fare cap cost $41.1m in 2023-24 or $112,000 a day, rising to $132,000 per day in 2026-27.

- V/Line trains - building 23 more VLocity trains for V/line passengers which will cost $601m of that $309m in 2023-24

- More weekend services for major regional train lines

SCHOOLS / EDUCATION

- Money going to upgrades at East Geelong primary school and Mound Duneed regional primary school, both to be completed by the end of 2025.

- $32m to retain and attract teachers to regional Vic, allowance for teaching students to undertake placements in regional and remote schools

- $186m to expand free TAFE course and subsidised courses

- Schools to be upgraded in Geelong - part of $12m where 12 schools will be included, including schools in Geelong

- Planning money for secondary schools at Armstrong Creek West and Mount Duneed.

- East Geelong Primary School upgrade will receive $248,000 in this budget which is part of $3.39m over the next few budgets. Project is expected to be completed in 2025-26

- Mount Duneed Regional Primary School upgrade will receive $259,000 in this budget which is part of $3.6m fund. Project expected to be completed by 2025-26.

- Western Heights College to receive $607,000 for $7.55m new gymnasium.

- New disability and student services hub at the Gordon TAFE in Geelong, $1.5m in this budget, part of $36m funding

- $3m to Nelson Park School in 2023-24, part of $10.34m

- $6.8m to Northern Bay College in 2023-24, part of $17.2, project has increased by $1.2m due to “market escalation in the construction sector”

- Clifton Springs primary school to receive 4.13m in 2023-24, expected to be completed mid 2023

- Grant for construction at St Francis Xavier primary school in Corio

WOMEN / FAMILY VIOLENCE

- $22.8m fund to provide specialist family violence legal assistance in a number of areas including in Geelong.

- $153m to establish 20 new women’s health clinics

- $5.3m for mobile women’s health clinic to deliver specialised services across rural and regional Victoria.

- $116m for six new tech schools to encourage girls to pursue careers in STEM like engineering and science.

BUSINESS

-Up front stamp duty on commercial and industrial properties transitioned to yearly property tax from July 1, 2024 to add $50bn to the economy. Yearly property tax to be paid for 10 years. Government said this move would allow businesses to expand and hire more staff.

-A 10-year Covid debt levy on big business with payrolls above $10m, the land tax threshold will also decrease for businesses which will be offset by increases to the tax-free threshold to payroll tax.

- $10m to provide free vehicle registration to eligible apprentices and tradies

PUBLIC SECTOR

- 3000 to 4000 job losses in public sector with a focus on communications, marketing, policy servicing to ministers. Job losses through redundancies and other attrition.