Tim Pallas’s departure would trigger a shake-up in Premier Jacinta Allan’s cabinet

Labor’s factional players gunning for Tim Pallas’ spot in the ministry may have to wait a little longer, with the treasurer rejecting suggestions he is set to quit politics.

Treasurer Tim Pallas has rejected suggestions he will resign from politics after he delivers his tenth budget in May.

“I’ll be here for as long as my party and the state believes I can serve a useful purpose,” Mr Pallas said outside parliament on Tuesday.

“I’m working hard to look after the economic interests in the state.”

It comes after Labor figures yesterday discussed who would replace Mr Pallas amid persistent rumours he would sign off as treasurer for good in coming months.

Sources, speaking anonymously, told the Herald Sun many considered his exit a certainty.

Mr Pallas on Tuesday conceded that retirement “crosses your mind” but he was still determined to finish his term.

“I feel that I have a substantive role and honestly an obligation to the people of Victoria to complete the work that I started,” he said.

“Everyday I wake up thinking of new things, new ideas and I’m surrounded by incredibly talented members of parliament, ministers, and I want to help them achieve all the things that they aspire to.”

Premier Jacinta Allan earlier refused to say whether Mr Pallas would stay on after the budget, batting away multiple questions about his future.

“The Treasurer and myself, we’re absolutely focused on the task we have before us,” she said.

“In the case of the Treasurer, it is delivering the budget, his 10th budget.”

His rumoured departure would leave a hole in the ministry that factional players are already gunning for.

Victorian Treasurer Tim Pallas is expected to step down later this year. Picture: Luis Enrique Ascui

Caucus members confirmed that under the stability deal, Bentleigh MP Nick Staikos, who is in Mr Pallas’s left-aligned National Union of Workers faction, is next in line to move in to the ministry.

However, it’s understood that Narre Warren South MP Gary Maas, a former secretary of the now named United Workers Union – who was aligned with Mr Staikos when the factional grouping defected from the right – could also be in the running.

From the left, Frankston MP Paul Edbrooke is a contender, having narrowly missed out to Eltham MP Vicki Ward in the last vacancy decision.

But, with factional deals at play he might struggle to find support, a union figure said.

The vacancy would be decided by an internal left ballot.

Mr Pallas’s departure would trigger a shake-up in Premier Jacinta Allan’s cabinet.

One source said she “would want to avoid a big reshuffle to keep the peace”.

Labor MPs broadly agree the obvious candidate for the purse strings is assistant Treasurer Danny Pearson.

He was favoured by Ms Allan when he was elevated to the multibillion-dollar former transport infrastructure and Suburban Rail Loop portfolios in the first cabinet announced after former Premier Daniel Andrews retired.

However sources said wider support for Mr Pearson had waned, with Labor MPs unhappy about his push for WorkCover changes.

It’s also understood many backbenchers are upset with an alleged deal done with the Liberals in a bid to get the controversial legislation through.

Several Labor MPs also told the Herald Sun that there were concerns about Mr Pearson’s judgment after he failed to disclose a cache of Commonwealth bank shares in 2021 when the government was signing of a new financial services contract worth about $120 million a year, to a panel made up of Westpac, NAB and the Commonwealth Bank.

Another name being put forward is Ben Carroll, who is from Labor’s Right faction and is seen as a potential steady pair of hands in treasury.

However, the move would mean Mr Carroll, who is also Deputy Premier, would be juggling a big workload with a leadership role and the treasury portfolio.

“But it’s not unheard of,” said one Labor figure.

“Look at Paul Keating, he did it very well.”

Another suggestion was Gabrielle Williams, who currently holds the government services, consumer affairs, and active transport portfolios and it being touted as a rising star to watch.