Jacinta Allan defends mammoth tax take after state budget, says Victoria has ‘fiscal strategy’

Premier Jacinta Allan is out and about selling her budget, arguing the state’s record debt and surging tax take is all part of Victoria’s nation-leading approach to managing its finances.

Premier Jacinta Allan has defended her government’s huge tax take and shrugged off concerns about ballooning debt, claiming “every single dollar” was going towards services and supporting families.

Ms Allan’s first stop post-budget was to the Northern Centre for Health and Education Research in Epping to spruik the expansion of the state’s virtual emergency department.

But while the Premier was keen to talk health, she spent the morning dodging questions on debt, tax and the delayed upgrade of the state’s troubled myki system.

Asked how she justified the mammoth tax take, which is on track to hit $50bn by 2030, Ms Allan said “every single dollar” was being invested back into services and initiatives across Victoria.

Premier Jacinta Allan has defended Labor’s mammoth tax take. Picture: Nadir Kinani

This is despite Tuesday’s budget figures showing net debt was forecast to rise to $194bn by 2028-29 along with an interest bill of $10.6bn — equivilant to $28.9 million a day.

Pressed over the billions of dollars being swallowed up by interest repayments, Ms Allan claimed the money was all being invested into the Metro Tunnel, West Gate Tunnel, the North East Link and the Suburban Rail Loop.

She, however, conceded that driving down the debt was “a priority”.

With a promised future surplus of $1.2bn shrinking to just $600 million next year, Ms Allan was also quizzed over how Victorians could trust that it was going to be delivered.

“We are the only state in Australia to have a fiscal strategy, and the budget yesterday confirmed that we are meeting what we set in that fiscal strategy, including delivering an operating surplus,” she said.

After budget papers showed card tap-ons across the transport network would cost an extra $137 million and be delayed by 18 months, Ms Allan tried to downplay the revelations, claiming that it was “always going to be a staged roll out”.

“The trials are already underway right now, and the work will be rolled out next year,” she said.

“Indeed, for many Victorians, you can already use your phone,” she added, referring to Android users being able to use a digital myki.

“You already have that contactless technology depending on the sort of phone that you have.”

Originally published as Jacinta Allan defends mammoth tax take after state budget, says Victoria has ‘fiscal strategy’