Victorian government makes more budget announcements before it’s handed down

THE Victorian budget is predicted to be tighter than the two before it, but the Andrews government will spend big on infrastructure and law and order.

Victoria Premier Daniel Andrews has made some announcements before the budget is handed down. Picture: Jason Edwards

IT’S predicted to be a tighter budget than the two before it, but Victoria’s Andrews government will still spend big on infrastructure and attempt to fix the law and order mess.

The state’s financial blueprint will be released on Tuesday and the lead-up has seen modest spending announcements balanced with some tax hikes. Here’s what we know so far.

INFRASTRUCTURE

Victoria will invest $1.45 billion in regional rail services and upgrades as part of Tuesday’s state budget. The package includes more than $400 million to upgrade the Gippsland line.

“If we can better regional communities with Melbourne, if we can better connect between regional communities, that’s great for families, it’s great for employment,” Premier Daniel Andrews told reporters on Sunday.

The government has also pledged $100 million for North East Link planning and pre-construction and committed $10 million to investigate private Melbourne airport rail link options.

About $271 million will complete the third stage of the redevelopment of Melbourne Park, the home of the Australian Open.

Money in the budget will go towards completing Melbourne Park upgrade.

HEALTH

Victoria’s budget will funnel another $26.5 million to improve ambulance response times after new data showed the best performance in seven years. The March quarter data showed 80 per cent of Code One emergency calls were responded to within the 15 minute target.

At the height of a response time crisis in 2012 and 2013, only 73 per cent of calls were met in that time. However, there was still work to be done.

Ambulance Victoria has two official response targets of 15 minutes for Code One calls — an 85 per cent rate statewide and 90 per cent in centres with populations larger than 7500.

Mr Andrews announced on Monday the extra millions will be used to continue to improve response times.

About $80 million will also go towards expanding the Maternal Child Health Service and about $63 million will expand the Monash Medical Centre emergency department, with an exclusive area for children.

The government has pledged $15.56 million for real time monitoring systems to ensure faster responses to large scale emergencies like the thunderstorm asthma event.

The government has also committed $17 million for personal safety technology for family violence.

Victoria’s budget will funnel another $26.5 million to improve ambulance response times. Picture: Gordon McComiskie

CRIME

A whopping $2 billion for more police and other Community Safety Statement initiatives will be part of this year’s budget. There will also be $308 million committed to overhaul management of serious, violent offenders. The government will spend $81.1 million on rehabilitation beds, aboriginal health workers and drug treatment services under the Ice Action Plan

THE LOSERS

Victorian car buyers and property investors will be slugged by tax changes that will rake in about $120 million a year in the upcoming state budget. Those in the market for a brand-new car will pay more stamp duty from July 1 in a move Treasurer Tim Pallas says will put more than $100 million a year into the state’s coffer.

For new passenger vehicles, stamp duty will increase from $6.40 per $200 of market value to $8.40, aligning the rate with that for used cars. Mr Pallas told reporters on Saturday it means stamp duty for a $23,000 car like a Toyota Corolla will rise by $230, from $736 to $966.

Property taxes are also in the line of fire and from next financial year investment property transfers between partners will no longer be exempt from stamp duty, except for the principal place of residence or following a relationship breakdown.

It’s estimated about 3000 people a year use such an arrangement and will generate $20 million a year.

And from 2019, land tax will be revalued annually instead of biannually. The changes come after Premier Daniel Andrews held firm his government would “honour all its promises” when pressed on Friday on whether a pre-election commitment of no increase to taxes beyond CPI or no new taxes, charges, fees and levies still held for this year’s budget.

The opposition is calling the changes a broken promise.

“Under Daniel Andrews the only thing rising faster than the crime rate is the tax rate,” shadow treasurer Michael O’Brien said in a statement.