Jeff Kennett: Allan government penalising Victorians for working hard all our lives

Victorians who bought a holiday home 20 years ago and backed local jobs in coastal communities are now being forced to pay for the state government’s mismanagement of our affairs. Where is the incentive to remain in Victoria?

Trust everyone had a good long weekend. Hot weather, thousands left the city and suburbs for the bay and ocean for family time and relief from the heat.

The talk around the coast by those who own a holiday home was the extraordinary hike imposed by the state government on the land tax assessments that have been hitting the letterboxes.

Many doubling, some tripling! Leaving retirees who are no longer earning incomes but living off their superannuation, or pensions, shattered.

Many still at work but without the resources to pay the hike in land tax.

Of course, this is simply a wealth tax. But not on the wealthy, just those who have worked hard all their lives, paid their taxes, and are now being forced to pay for the state government’s mismanagement of our affairs.

Estate agents in coastal locations are being swamped by owners complaining about the hike in land tax and seeking advice about selling their properties.

Estate agents in coastal locations are being swamped by owners complaining about the hike in land tax and seeking advice about selling their properties.

The increases in land tax are deeply unfair. The tax is levied irrespective of your income and discriminates against Victorians who have saved and planned for the future. Victorians are being penalised for investing in Victoria.

If you bought a holiday house 20 years ago where you’ve spent the summer with your family and you’ve supported local jobs in coastal communities, you’re hit with land tax. You don’t pay land tax when you holiday in Europe. It’s almost as if the government wants us to spend our money anywhere but here in Victoria.

The government says this hike in land tax is to pay for the cost of the Victorian government’s response to Covid.

Rubbish. Victoria’s costs were well out of control well before Covid. The infrastructure build, so much of it all at once, without controls on performance by contractors, and cost blowouts in salaries has left Victoria in a precarious financial position. Mismanagement is everywhere.

Premier Daniel Andrews set Victoria on a course to financial ruin. Picture: David Crosling

Just a few days ago we discovered the government paid at least $67m to contractors on the rail link to Tullamarine NOT to work on the project.

Yes, costs associated with Covid contributed to our growing debt, but it was not the base cause.

We are now being told by 2027, only three years from now, Victoria’s debt will have risen to $249bn.

But put that into perspective, it is also estimated that will cost Victorians about $40m a DAY. Or $280m a week. Or $1120m a month, or $13,440m a year in interest on that debt alone.

Where is the revenue going to come from to pay that interest bill?

Victoria has no access to mineral royalties like Western Australia, NSW and Queensland do.

There is no way Victoria will be able to reduce the level of debt in my lifetime. Because the interest bill on the debt will just continue to grow the debt.

Unfortunately, his successor Jacinta Allan is following Andrews’s economically destructive course. Picture: AAP

The Victorian government is killing incentive for anyone to remain in Victoria including businesses. As the population of long-standing citizens and businesses declines the burden of the interest payments will fall more heavily on those who remain.

The Labor Guilty Party of the 1980s were responsible adults compared to the Labor Guilty Party of today.

The former premier Daniel Andrews, who is responsible for our looming disaster, has jumped ship, having set Victoria on a course towards financial ruin.

Unfortunately, his successor Jacinta Allan is following Andrews’s economically destructive course. As yet she’s shown no interest in turning the ship around, and she’s continuing to sign massive contracts that will only compound the financial crisis she has inherited.

The third member of the New Guilty Party is Treasurer Tim Pallas. He has been the state’s Treasurer for 10 years. Either he’s had absolutely no influence on the two Premiers he has served, or he is complicit in this race to the destruction of Victoria.

Pressure must be put on the government to slow its infrastructure spend and start cutting taxes. Picture: Valeriu Campan

Sadly, some in the Liberal opposition, have no idea of what teamwork is, only think of themselves and have become professional opposition members. They simply do not want to be an effective opposition let alone government.

Pressure must be put on the government to slow its infrastructure spend and start cutting taxes.

People and businesses will want a reason to stay in Victoria.

The next state election is now less than three years away and a lot can change in that time. But one thing I can guarantee, Victoria will be a very different place in 2026 than it is today, and not for the better.

I can see the advertisements of The Guilty Party now, with pictures of Andrews, Allan and Pallas.

Just think how or who will pay the $40m interest a day that your Labor government has racked up on your behalf?

Hopefully some in the government will have the strength to govern, to turn the ship of state around.

Jeff Kennett is a former Premier of Victoria