New Victorian Treasurer Jaclyn Symes can’t rule out introducing new taxes

Victoria is facing renewed calls to rein in spending, as Treasurer Jaclyn Symes refuses to rule out introducing new taxes.

Victoria is facing renewed calls to rein in spending as treasurer Jaclyn Symes has conceded she is considering introducing new or increased taxes.

The state’s debt burden remains the highest in the country with new forecasts that Victoria’s debt to revenue ratio could surpass 200 per cent by 2028 when net debt is tipped to peak at a record $188bn.

In a new report published on Tuesday, Moody’s Ratings said revenue in Victoria, and NSW, remained vulnerable to financial market volatility because of uncertainties around global growth and geopolitical risk.

And it warned that without any countermeasures, debt affordability would intensify with interest payments alone set to absorb nearly 9 per cent of Victorian revenue, the highest in the country.

“Meeting social demands for public services and infrastructure, while fostering economic growth amid low private demand, will test each state’s willingness to implement countermeasures,” the report said.

“Delaying action risks further increasing government debt and worsening debt affordability, which could be amplified by jittery financial markets demanding higher interest rates to compensate for increased repayment risk.”

Victoria’s new treasurer Jaclyn Symes can’t rule out more taxes. Picture: Andrew Henshaw

Moody’s warned the ability to raise additional revenue would be constrained by any government commitments for no new or increased taxes.

Ms Symes said she was currently considering raised taxes and spending cuts ahead of handing down her first budget in May.

“Yeah, look, I’m looking at lots of things and I’ll have more to say in relation to announcements,” she said.

“I’m not ruling anything in or out, but I want to ensure that Victorians know that I understood how tough it is to run the family budget.”

Speaking at her first press conference since taking control of the state’s purse strings late last year, Ms Symes said she had spent the past two months familiarising herself with the role, speaking with experts and urging departments to cut down on spending.

She had also put departments and agencies on notice about economic waste, urging them to not spend outside their means to ensure they are “not taking taxpayer money for granted”.

“Efficient, effective departments are something as treasurer that I have an expectation of (and) making sure that you are constantly looking at your expenditure, what your priorities are (and) aligning them with government priorities because government priorities are Victorian’s priorities,” she said.

The short stay tax is one of the new taxes Victoria has been slugged with. Picture: Supplied

“Of course it is incumbent on departments and ministers to continually take stock of what they’re doing. If you’ve got a program that’s been running 20 years, is that important to the Victorian people now? I’d like a response to that question.”

Late last month, the Allan government came under fire for delaying this year’s state budget until after the pending federal election.

The budget was set to be delivered on May 6, but will now be delayed by two weeks in a move that sparked fierce criticism from the state opposition.

The federal election must be held on or before May 17.

“With a federal election due to be held in the first half of 2025, we will finalise our budget after we know the outcome,” a government spokeswoman said last month.

“As a result, the Victorian budget 2025/26 will now be delivered on May 20.”

Shadow Treasurer James Newbury accused the government of stalling tactics because it was politically convenient.

The government’s mid-year budget update, released in December, showed the state’s deficit had ballooned by $1.4bn from an expected $2.2bn to $3.6bn this financial year.

On Tuesday, Ms Symes said “many, many experts” had indicated Victoria’s finances are heading in the right direction and rating agencies had deemed the state “stable”.

“I am very conscious that is not necessarily translating to households and family pressures,” she said.

“That is why as Treasurer and as a government we are solely focused on cost of living pressures.”

Originally published as New Victorian Treasurer Jaclyn Symes can’t rule out introducing new taxes