Eye-watering Vic Labor tax haul revealed, as farmers, business and property owners cry for help

Labor’s rigid tax regime is set to rake in almost $42bn by 2026 off the back of hurting Victorians, with the Allan government on track to hit $50bn in imposts by 2030 — 173 per cent more than when the party came to power in 2014.

The Allan government’s annual tax take is on track to hit $50bn by 2030, a whopping 173 per cent more than when Labor came to power in 2014.

Tuesday’s budget papers revealed Labor’s rigid tax regime is set to reel in almost $42 billion by 2026, despite desperate pleas for relief from struggling small business owners, farmers and property owners.

The huge figure is a far cry from $18.3bn in Labor’s first budget under Daniel Andrews in 2014 – 2015, and is almost $11bn more than the $31bn reeled in just three years ago.

With roughly an extra $2 billion in tax expected to pour in every year over the forward estimates, annual tax revenue is forecast to reach a staggering $48bn by 2029 — putting it on track to hit $50bn by 2030.

Former Victorian Premier Dan Andrews. Picture: David Caird

Treasurer Jaclyn Symes said the government had no choice but collect the mammoth haul.

“Unfortunately, unlike WA who can literally dig money out of the ground, in Victoria, we have limited ability to raise revenue,” he said.

“Most revenue that we raise comes from payroll tax, the rest is using property leverage.”

She was also keen to drive home the message that there were “no new or increased taxes” as she handed down her first budget.

But while there was no surprise taxes, the figures revealed an additional $2.5bn was expected to be squeezed out of households, businesses and landholders over the next year, with the tax take rising from $39.2bn to $41.7bn.

The huge jump includes an extra estimated $746 million pulled from employers, $536m from a slew of property taxes and $880 million from goods and services, such as land transfer duty and public lotteries.

Victorian Premier Jacinta Allan and Treasurer Jaclyn Symes. Picture: David Crosling

Increases in car taxes, vehicle registrations and liquor licence fees are also estimated to raise an additional $363 million.

Opposition Leader Brad Battin said while the government was set to clock $40 billion in annual tax next year, Victorians were struggling to put food on the table.

“In the last 10 years the average income in Victoria has increased by just 38 per cent yet the Allan Labor government have increased taxes by 133 per cent,” he said.

“You can’t tax your way out of a cost of living crisis.”

Victoria’s newest tax, the widely unpopular Emergency Services and Volunteer Fund, is forecast to rake in an additional $2.1 billion for the government over its first three years.

The government is also banking on an extra $300 million from employers through payroll tax, the infamous Covid Debt Levy and Mental Health and Wellbeing Levy next year.

Australian Industry Group Tim Piper said the huge tax impost would continue to drive businesses into Queensland, South Australia, NSW.

“It’s a good thing we weren’t expecting too much, because we would have been disappointed,” he said on Tuesday.

“This is not a budget for business.

“Victorians will continue to pay for the highest taxes in the country.”

The Allan government’s annual tax take is on track to hit $50bn by 2030. Picture: Getty

Property figures also ripped into the Allan government for failing to heed their warnings and over a refusal to scrap windfall gains tax.

“Windfall gains tax is absolutely a handbrake on development … (and) only earns the government around $100m a year,” Urban Development Institute of Australia Victorian head Linda Allison said.

“In the scheme of things, it’s very small … and would actually deliver more revenue for the government because we’d see more buildings starting – more property transactions.”

Amid an exodus of landlords, the government has also been forced to shave millions of dollars off their land tax estimates.

Real Estate Institute of Victoria president Jacob Caine said the reduction reflected a consistent warning from property figures that increasing it would not work.

“Without question, certainly from a residential perspective, the more than 20,000 investment properties that have come out of the rental market also translate into that downturn in land tax collected,” Mr Caine said.

“This is a demonstration that the choice to increase land tax and apply it across the board was a misstep by the government.”

Gambling, public lottery, casino and sports betting taxes are also forecast to climb to almost $3bn combined by 2029.

Originally published as Eye-watering Vic Labor tax haul revealed, as farmers, business and property owners cry for help