Shadow treasurer Brad Rowswell slams state budget for sparking ‘division and class warfare’

Victoria’s shadow treasurer has lashed the Andrews government for handing down a budget that “burdens Victorians with more debt, more taxes and cuts to promised infrastructure projects”.

Shadow treasurer Brad Rowswell has accused the government of sparking “division and class warfare” with its state budget.

In a budget reply delivered in parliament on Tuesday, Mr Rowswell said aspirational Victorians were being punished for financial mismanagement by the Andrews government.

Last week’s budget revealed state debt was set to skyrocket to $171bn – almost $70,000 for every household – despite new Covid levies that are expected to generate more than $8bn in revenue.

Budget forecasts predict interest payments to service the staggering debt will hit $22m a day by 2026-27 while tax revenue will climb to $40bn – double what it was in 2015-16.

“This Budget not only costs Victorians more, it demonstrates the failings of the Government’s fiscal strategy,” Mr Rowswell said.

“It cuts jobs, rather than creates jobs, it fails to bring down debt levels, it fails to reign in public sector project cost blowouts, and it not only raises taxes but introduces new ones.”

Shadow treasurer Brad Rowswell delivered his budget reply on Tuesday. Picture: Nicki Connolly

The opposition has vowed to repeal a controversial new schools tax set to be imposed on more than 100 of Victoria’s top fee-paying schools.

The government plans to remove payroll tax exemption from 110 schools with annual fees of more than $7500, raising $421m over the next three years.

The move has prompted concerns schools will be forced to increase fees, cut programs or sack staff.

Mr Rowswell said the opposition was also opposed to new taxes on investors which has prompted fears it will worsen the state’s rental crisis.

“Victorians should have a government that works for them, that makes their lives easier, and that looks to create a better future for our children,” Mr Rowswell said.

“But instead, we have a government that is trapping Victorians with the price of debt-fuelled spending and tens of billions in waste and government cost blowouts.

“Rather than reflect the best of the Victorian people, this Budget reflects the financial mismanagement and lack of credibility and integrity of the Andrews government.

“This is not a Budget that makes lives better, but one that burdens Victorians with more debt, more taxes, and cuts to promised infrastructure projects.

“And it is a Budget that divides Victorians instead of uniting them.”

The Budget reflects the “financial mismanagement” of the Andrews government, according to the Shadow treasurer. Picture: David Geraghty

Mr Rowswell said the budget was premised on “division and class warfare” and which “punishes 6.8 million Victorians for trying to get ahead”.

Under the new land taxes, Victorians with more than one property will pay a minimum $5000 over the next decade, with a new $500 annual tax for investment properties with a land value between $50,000 and $100,000.

The payment will increase to $975 for properties with site values between $100,000 and $300,000, while a further 0.1 per cent of the land value will be applied to properties worth more than $300,000.

The new tax, starting in January, is set to net $4.7bn over the first four years.

A Covid levy targeting big employers is expected to raise $3.9bn, with payroll tax to increase for companies with wages bills of more than $10m. It will affect the same businesses that have been subjected to a mental health levy since 2021.

Businesses have also been hit with 42 per cent hikes in WorkCover premiums, making the scheme one of the most expensive in the country.

Overall, the government will rake in an estimated $40.3bn in tax in 2026-27, up from $30.5bn in 2021-22.