Victoria facing 50th new or increased tax, despite Daniel Andrews’ 2014 election vow

The Opposition Leader won’t rule out if he’ll introduce new taxes if he wins the next state election as the Andrews government gets set to slug Victorians with a 50th tax.

Opposition Leader John Pesutto has refused to rule out whether he would introduce new taxes if elected to government in 2026.

The Coalition will on Wednesday head out to the regions to spruik its new discussion paper, aimed at reforming Victoria’s tax system.

At the official launch with the Victorian Chamber of Commerce and Industry on Tuesday Mr Pesutto pledged to repeal as many of the Andrews government’s taxes as possible.

It comes as Andrews government gets set to hit Victorians with a 50th new or increased tax as it continues to cut its ­rising debt.

If the government powers ahead with a flagged tourist tax, it would bring the number of new and increased taxes to 50 since 2014.

The Opposition Leader claimed Victoria had the highest annual taxes of any state in Australia, at $5074 per person.

“We did commit in recent weeks to repealing the schools tax and I have said elsewhere that we will repeal as much of those other taxes, the land tax grab and the payroll tax grab as quickly as possible,” Mr Pesutto said.

However, he refused to say which taxes he did back and whether he would introduce any new taxes.

“Today’s not a day for ruling in and ruling out taxes,” Mr Pesutto said.

MELBOURNE, AUSTRALIA - NewsWire Photos MAY 13, 2023: Victorian leader of the Opposition Mr John Pesutto MP gives a media conference after holding a Liberal Party meeting to decide on Moira Deeming future. Picture: NCA NewsWire /Luis Enrique Ascui

The comments come as shadow treasurer Brad Rowswell and shadow finance minister Jess Wilson kick off their roadtrip to “every corner of Victoria” this week to ask people which taxes they would like to see scrapped, beginning with Shepparton and Ballarat.

The Coalition says the discussion paper will help form their party platform in the lead-up to the 2026 election.

One tax reform that will not be on Mr Pesutto’s agenda, however, is the CFMEU’s new push for a ‘super profits tax’ to raise billions for building new social and affordable homes.

The construction union on Tuesday launched a national advertising blitz to pressure Labor to adopt a new tax of 40 per cent on excess profits of national corporate giants.

CFMEU secretary Zach Smith said the funds should be diverted to building more than 750,000 new social and affordable homes.

But Mr Pesutto said his party was a long way off taking advice from the CFMEU on economic reforms.

“There is no universe in which we should be taking economic advice from the CFMEU which has on countless occasions been condemned by the federal and other courts in our country for regularly defying the law,” he said.

“I think they need to demonstrate what role they can play in delivering projects better.

“I don’t think a super profits tax should be top of the agenda when it comes to the CFMEU.”

Victorian Chamber Chief Executive Paul Guerra, who welcomed the Liberals approach to tax reform, said Victorian businesses were “doing it tough” and were being treated “as an ATM”.

“Businesses are prepared to… pay appropriate tax to make sure the state stays where it needs to be but we’re seeing a myriad of new taxes,” Mr Guerra said.

Victorians are being invited to make submissions at bettertaxsystem.com.au before October 31.

A tourism tax, including a possible Airbnb levy, is set to be introduced in Victoria. Picture: Airbnb

Andrews flags Airbnb levy

Premier Daniel Andrews said a tourism tax, including a possible Airbnb levy – as ­revealed by the Herald Sun – could be introduced to help pay for a housing affordability package to be unveiled this year.

If implemented, it would be the state’s 50th new or increased tax in nine years, despite Mr Andrews vowing to not introduce any new taxes on the eve of the 2014 election.

The state opposition will on Tuesday begin contacting households and businesses through the release of a discussion paper aimed at reforming Victoria’s tax system.

Since coming to power in 2014, the Andrews government has introduced 49 new or increased charges. Picture: Nicki Connolly

Hosted by the Victorian Chamber of Commerce and Industry, the discussion paper will seek public input on how to make Victoria’s tax system more competitive, encourage investment in the state and ease the cost of living.

It comes as two reports from the state’s independent budget watchdog revealed that Victoria was facing a 41 per cent increase in workers’ compensation premiums.

The state is also expected to have the second highest total payroll tax revenue in 2022-23 behind New NSW.

Australian Industry Group Victorian chief Tim Piper said the number of government imposed fees had left Victorian businesses concerned about their longevity and competitiveness.

“Additional taxes on business just means additional costs on you and me,” he said.

Last month, the Herald Sun revealed Victoria was Australia’s the highest-taxed state, according to a parliamentary budget office analysis, which said the government would collect $5074 per person.

A government spokesman said it had cut or abolished taxes and charges 63 times since taking office.

“Our economy is strong and the outlook positive – Deloitte Access Economics last week forecast that Victoria’s economic growth would outstrip all other states over the next two years,” he said.